By: Continental Reinsurance
Continental Reinsurance Plc has released its half year results for the period ending 30th June 2018.
Good momentum in volume growth remains as the consolidated Gross Premium for the Group posted a growth of 27% up from NGN15.19 billion in 2017 to NGN 19.26 billion, a reflection of a supportive market environment.
Despite a competitive pricing environment, higher frictional costs and a higher claims ratio, 2017 underwriting performance, although 36% lower, remains strong due to tighter portfolio management. Claims incurred amounted to NGN 6.76 billion compared to NGN 3.52 billion, with the incurred loss ratio deteriorating from 36% to 46%.
Negative technical performance factors were partially offset by positive performance on investments, at NGN 1.23 billion, slightly lower by 6%, cost savings and efficiency improvements. The Company continues to enjoy a highly favourable 91% combined ratio. Profit before tax, NGN 3.24 billion representing a 4% modest year-on-year growth, is 31% higher than budget.
Shareholders’ funds improved markedly by 24% to NGN 25.77 billion compared to NGN 20.77 billion during the same period in 2017.
“We are pleased with our value creation evolution in the first half of 2018. Claims settlement excellence remains our key value proposition. We will continue with our efforts to increase our internal capacity and implement quality assurance measures that underpin the superior client experience we are known for.”, said Group Managing Director, Dr. Femi Oyetunji.
With a diverse and dedicated workforce, Continental Re is committed to implementing its 2020 strategy that complements Africa’s aspirations for higher insurance penetration and enhances value for its shareholders. The Group has put in place measures to improve revenue while optimizing costs and anticipates the 2018 performance to be in line with budget projections. The Group is also on course to completing the ongoing construction of its headquarters building by December 2018.
“One thing is certain,” said Dr. Oyetunji, “We are adapting quickly to changing market conditions and the Company has built strategic momentum to deliver solid results. We have learned over the years that our defining characteristic is that we are a responsive partner and, on this premise, our year-end expectations for growth and profitability remain unchanged.”