Continental Reinsurance PLC make sizable gains in Q3 2016

FemiGroup Managing Director and CEO of Continental Reinsurance, Dr. Femi Oyetunji. (Image source: Continental Reinsurance) Gross premium income at the end of the quarter was US$55.5 mn, up from US$47.8 mn in 2015 representing a 16 per cent growth

“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 and CEO, Dr. Femi Oyetunji.

The Company recorded an underwriting profit of US$2.3 mn in 2016, a decrease of 42 per cent from US$4 mn 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 US$16 mn, a 212 per cent 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 US$15.9 mn, US$6 mn in 2015, an increase of 143 per cent.

“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 Dr 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.”  Dr Oyetunji added, “We remain intensely focused on maintaining underwriting discipline and our focus on profitability over growth to further strengthen the Company.”

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