Continental Reinsurance Plc said it recorded N112.46 billion reinsurance revenue in year 2023 compared to N86.36 billion in 2022, indicating 30 percent increase.
The firm explained that the growth reflects its ability to attract and retain a growing customer base, demonstrating the trust the clients have in the company’s services.
Similarly, the net reinsurance service result grew to N9.14 billion in 2023, against N4.40 billion recorded in 2022, showing 108 percent rise; a pointer to the strong risk management and effective underwriting practices of the company.
The frontline reinsurance firm showcased substantial growth and strong performance across various metrics, as investment and other income grew to N30.61 billion from N5.66 billion in 2022, representing 440 percent rise.
This growth highlights the firm’s successful investment strategies and diversification of income streams, with an improvement in the quality of its investment assets.
The company stated, “Our profit before tax for 2023 was N23.51 billion, rising from N7.17 billion in 2022, a 228 percent increase. This improvement demonstrates our operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.”
Continental Re successfully implemented IFRS 17 during the period under review, enhancing transparency, consistency and comparability in its financial reporting.
The company said Lagos showed consistent performance with a slight improvement in the combined ratio compared to last year, and remains a strong contributor to both underwriting results and profit before tax (PBT), highlighting operational robustness and profitability.
Data released by the firm showed that Lagos regional operations recorded “combined ratio: 91.0 percent (2022: 91.8 percent), Written Premium Contribution: 31 percent (2022: 30 percent), and Group Underwriting Result Contribution: 30 percent Group PBT Contribution: 73 percent”
Also, Nairobi improved its combined ratio, reflecting better underwriting discipline. Its contributions to the group’s underwriting results and PBT remain strong, highlighting its importance in our operations.
“Combined Ratio: 90.0 percent (2022: 92.4 percent); Written Premium Contribution: 31 percent (2022: 40 percent); Group Underwriting Result Contribution: 34 percent, and Group PBT Contribution: 18 percent.”
Gaborone’s better combined ratio indicates improved risk management and operational efficiency. The region’s contributions to both the underwriting result and PBT reflect balanced performance.
“Combined Ratio: 90.2 percent (2022: 95.1 percent); Written Premium Contribution: 16 percent (2022: 11 percent); Group Underwriting Result Contribution: nine percent, and Group PBT Contribution: eight percent.”
Tunis improved its combined ratio, contributing significantly to the underwriting result. Its contributions to PBT indicate potential for further profitability enhancement. “Combined Ratio: 90.2 percent (2022: 94 percent); Written Premium Contribution: 12 percent (2022: 13 percent); Group Underwriting Result Contribution: 22 percent, and Group PBT Contribution: eight percent.”
CIMA showed progress with a considerable reduction in the combined ratio, which is promising for future contributions. The current PBT contribution remains modest.
“Combined Ratio: 95.2 percent (2022: 109.0 percent), Written Premium Contribution: 17 percent (2022: six percent); Group Underwriting Result Contribution: five percent Group PBT, and Contribution: two percent.”
Group CEO of Continental Reinsurance Lawrence Nazare commented, “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.”
Continental Re is the largest private pan-African reinsurer committed to delivering exceptional services and value to our clients and stakeholders. With a robust portfolio and a dedicated team, we strive to achieve excellence and sustainable growth.
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