Despite unprecedented challenges across Africa resulting from the COVID-19 pandemic, Continental Reinsurance has posted a 29 percent increase in gross premium income for the first quarter of 2020.
As the group reports an overall increase in gross premium income to N 11,560 million for the period, and with contributions from across its six locations remaining strong and steadily growing, Femi Oyetunji, group managing director, cautioned “The pandemic has alerted us to expect variations in key performance metrics, which are highly likely to impact our annual objectives.
“COVID-19 has caused extreme personal distress and challenged business sustainability across the world. However, it has also created an environment for greater collaboration, innovation and digital transformation, particularly within the insurance industry.”
Oyetunji said “as insurers, we should be demonstrating our value more effectively as lubricants of the economy and create greater cohesion with other sectors of our economies. As we do with the UN–Principles of Sustainable Insurance, steadfastly integrate our global efforts to proactively prevent and manage climate related catastrophes and pandemics, he said.
“Certainly, as insurance leaders, we are focusing attention to the crisis on the continent by working with industry players to contribute towards resolving this challenge. We are closely monitoring developments in our markets. We have instituted internal protocols to protect our staff while supporting our clients uninterruptedly and have the right strategies to trigger a return to normal – health concerns and government permitting.
Oyetunji stated further that, “ as the pandemic continues, we have also prioritized financial donations through industry bodies in our various jurisdictions to be used sustainably and equitably for the benefit of the citizens.”
Underwriting profit was N 1.565 million for Q1 of 2020 representing a 622 percent increase in comparison to the same quarter previous year’s N 217 million, demonstrating increased emphasis on underwriting discipline and cost control.
Profit before tax for the period was N 2.479 million, a 446 percent increase over the same period last year.
The company also saw a 14 percent increase in claims incurred amounting to N 4.675 million, which underpin’s Continental Re’s continuing commitment to meet its obligations in support of its clients.
Investment and other income stood at N 555 million; a 6 percent decline owing to a low-interest regimen and bearish markets.
Continental Reinsurance is a private pan-African reinsurance company that has been on the continent for over 30 years. It writes business in more than 50 African countries, which are serviced from six client service centres in Nigeria, Botswana, Cameroon, Côte d’Ivoire, Kenya and Tunisia. It also has an in house technical ‘referral competence’, Continental Property and Engineering Risk Services (CPERS), that services all its clients across Africa. With a diversified and profitable portfolio, it offers its clients a product of indisputable value underpinned by uncompromising service and technical capability.
