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Chuks Udo Okonta
Continental Reinsurance Plc said it recorded N112.46 billion as reinsurance revenue in year 2023 as against N86.36 billion in 2022, a 30 per cent rise.
The frontline reinsurance firm showcased substantial growth and strong performance across various metrics.
Group Financial Performance
Implementation of IFRS 17 in 2023, Continental Re successfully implemented IFRS 17, enhancing transparency, consistency and comparability in our financial reporting.
Gross Premium Income
Our reinsurance revenue increased to NGN 112.46 billion, up from NGN 86.36 billion in 2022, a 30 per cent rise. This growth reflects our ability to attract and retain a growing customer base, demonstrating the trust our clients have in our services.Net Reinsurance Service Result
The net reinsurance service result (underwriting profit) reached NGN 9.14 billion in 2023, compared to NGN 4.40 billion in 2022, representing a 108 per cent increase.
This growth indicates our strong risk management and effective underwriting practices.
Investment & Other Income
Investment and other income grew to NGN 30.61 billion from NGN 5.66 billion in 2022, showing a 440% increase. This growth highlights our successful investment strategies and diversification of income streams, with an improvement in the quality of our investment assets.
Profit Before Tax
Our profit before tax for 2023 was NGN 23.51 billion, rising from NGN 7.17 billion in 2022, a 228% increase. This improvement demonstrates our operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.
Regional Performance Lagos
Lagos showed consistent performance with a slight improvement in the combined ratio compared to last year. It remains a strong contributor to both underwriting results and profit before tax (PBT), highlighting operational robustness and profitability.
*Combined Ratio: 91.0 per cent (2022: 91.8%)
*Written Premium Contribution: 31 per cent (2022: 30%)
*Group Underwriting Result Contribution: 30 per cent Group PBT Contribution: 73 per cent
Nairobi
Nairobi improved its combined ratio, reflecting better underwriting discipline. Its contributions to the group’s underwriting results and PBT remain strong, highlighting its importance in our operations.
*Combined Ratio: 90.0% (2022: 92.4%)
*Written Premium Contribution: 31 per cent (2022: 40%)
*Group Underwriting Result Contribution: 34 per cent.
*Group PBT Contribution: 18 per cent
Gaborone
Gaborone’s better combined ratio indicates improved risk management and operational efficiency. The region’s contributions to both the underwriting result and PBT reflect balanced performance.
*Combined Ratio: 90.2 per cent (2022: 95.1%).
*Written Premium Contribution: 16 per cent (2022: 11%).
*Group Underwriting Result Contribution: 9 per cent Group PBT Contribution: eight per cent.
Tunis
Tunis improved its combined ratio, contributing significantly to the underwriting result. Its contributions to PBT indicate potential for further profitability enhancement.
*Combined Ratio: 90.2% (2022: 94%).
*Written Premium Contribution: 12% (2022: 13%).
Group Underwriting Result Contribution: 22 per cent.
Group PBT Contribution: eight per cent.
CIMA
CIMA showed progress with a considerable reduction in the combined ratio, which is promising for future contributions. The current PBT contribution remains modest.
*Combined Ratio: 95.2% (2022: 109.0%).
*Written Premium Contribution: 17 per cent (2022: 6%)
*Group Underwriting Result Contribution: 5% Group PBT Contribution: two per cent.
“We are very pleased with our financial performance for 2023,
“The significant growth across various metrics underscores our commitment to delivering value to our clients and stakeholders.
“Our successful implementation of IFRS 17, coupled with robust risk management and effective underwriting practices, has positioned us well for sustained growth.
“We are particularly proud of our regional performance improvements, which reflect our ongoing efforts to enhance operational efficiency and profitability,” said, Group CEO of Continental Reinsurance Lawrence Nazare.
About Continental Reinsurance
Continental Re is the largest private pan-African reinsurer committed to delivering exceptional services and value to our clients and stakeholders. With a robust portfolio and a dedicated team, we strive to achieve excellence and sustainable growth.
