Pan-African reinsurer Continental Reinsurance Plc has reported a net reinsurance service result, so underwriting profit, of NGN 9.14 billion (USD 5.6m) for 2023, a 108% increase from 2022’s NGN 4.4 billion (USD 2.7m).
The firm’s reinsurance revenue increased to NGN 112.46 billion (USD 69.4m), up from NGN 86.36 billion (USD 53.3m) in 2022, a 30% rise.
The reinsurer credits its growth to its ability to attract and retain a growing customer base, strong risk management and effective underwriting practices.
The firm’s profit before tax for FY 2023 was NGN 23.51 billion (USD 14.5m), a 228% increase year on year from NGN 7.17 billion (USD 4.4m) in 2022. This improvement was due to operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.
In the firm’s asset book, investment and other income grew to NGN 30.61 billion (USD 18.9m) from NGN 5.66 billion (USD 3.5m) in 2022, a 440% increase, credited to successful investment strategies and diversification of income streams, and quality investment assets.
In 2023, Continental Re successfully implemented IFRS 17, enhancing transparency, consistency, and comparability.
A regional breakdown shows Lagos performed consistently with a slight improvement in the combined ratio of 91% compared to 2022’s 91.8%. It remains a strong contributor to both underwriting results and profit before tax, adding 30% and 73% to the segments, respectively. The region also contributed 30% to the group underwriting result.
In Nairobi, the combined ratio improved to 90% from 92.4% in 2022, contributing 34% to the group’s underwriting result and 18% to profit before tax.
The Gaboronere region reported a combined ratio of 90.2%, contributing to the underwriting result by 9% and profit before tax by 8%.
Tunis improved its combined ratio from 2022’s 94% to 90.2%, contributing significantly to the underwriting result by 22%. The region’s profit before tax contribution of 8% indicates a potential for further profitability enhancement.
CIMA showed progress with a considerable reduction in the combined ratio of 95.2%, which is promising for future contributions. The current profit before tax of 2% for the region remains modest, contributing 5% to the group underwriting result.
Lawrence Nazare, Group Chief Executive Officer of Continental Reinsurance, commented on the results: “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.”
