Continental Re records 16 percent growth in gross written premium Q3

Continental Reinsurance Plc has announced its 2016 third quarter results recording a gross premium income of N17.5 billion, up from N15.1billion in 2015 representing a 16 percent increase.

“Growth opportunities and challenges continue to vary widely across our markets, while short-term risks have introduced setbacks in certain countries – fundamentally altering the pace of growth. In line with the company’s strategy, progress continues to be spurred by our diversified presence across the continent,” said the Group Managing Director/CEO, Femi Oyetunji.

The Company recorded an underwriting profit of N746 million in 2016, a decrease of 42 percent from N1.28billion in third quarter 2015. This modest outcome was primarily caused by the impact of a few large claims that compromised profit expectations.

Investment and other income stood at N5.1 billion, a 212 percent growth year-on-year. The significant growth was partially attributed to unrealized gains on hard currency assets as a result of foreign exchange movements following the sharp devaluation of the Naira. Profit before tax was N5.03billion, (2015: N2.07billion), an increase of 143 percent.

“Our continent is still vulnerable to external shocks. The slowdown of the global economy has dampened Africa’s growth prospects. However, notwithstanding upsets in some of our markets, the Company is poised to continue along a positive growth trajectory,” said

Oyetunji. “Underpinning the Company’s growth prospects is the diversification business model that offsets increased competition and the influx of international companies, particularly from developed countries.”

Oyetunji added, “We remain intensely focused on maintaining underwriting discipline and our focus on profitability over growth to further strengthen the Company.” In the month of October 2016, A.M. Best.