By Alex C
Continental Reinsurance Plc gross premium has grown by 28 percent to N15.86bn in 2013 from N12.40bn in the previous financial period. This revelation, contained in a statement by the company, revealed that non-life and life businesses grew by 32 percent and 11 percent, respectively while total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.
The company’s Profit Before Tax (PBT) rose by five percent to N2.23billion in 2013 from N2.13billion in the previous year while Profit After Tax grew to N 1.75billion, which was higher than the preceding year’s figure of N1.73billion.
Retrocession premium during the period under review was N1.69bn, reflecting a retrocession ratio of 10.6 per cent, which is lower than the 12.5 per cent recorded in the previous year. According to the statement, the firm’s loss ratio remained unchanged for both years at 47 percent.
Management and administrative expenses increased by 16 percent from N1.65bn in 2012 to N1.91bn in 2013, partly due to the recognition of one-time costs related to retiring and departing employees.
Underwriting profit increased by 25 per cent from N1.35bn in 2012 to N1.68bn in 2013, mainly due to a higher growth in premium than the increase in combined costs. The 2013 underwriting profit ratio as a percentage of gross premium income remained at 11 percent.
Investment income in 2013 was N1.61bn, which was higher than the previous year’s figure of N1.46bn by 10 percent, due to an improvement in the investment climate.
Continental Re said its total comprehensive income grew by 19 per cent from N1.75bn in 2012 to N2.09bn in 2013.
Commenting on the results, Dr Femi Oyetunji, Managing Director, Continental Re, said, “It is to the great credit of our management team and the entirety of our staff that the company continues to grow its market share in key markets, while adhering to prudent underwriting practices. The substantial growth in our non-life and life businesses is also a result of the company’s five-year growth strategy assisted by the economic growth in many African countries.”