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Continental Re records N17.5 billion in Q3

By Lucky Orioha
07 November 2016   |   2:34 am
Continental Reinsurance Plc, has recorded a gross premium income of N17.5 billion in the third quarter Q3, 2016, which represents 16 per cent increase when compared with N15.1 billion corresponding period of 2015.
Dr. Femi Oyetunji

Dr. Femi Oyetunji

Continental Reinsurance Plc, has recorded a gross premium income of N17.5 billion in the third quarter Q3, 2016, which represents 16 per cent increase when compared with N15.1 billion corresponding period of 2015.

The Group Managing Director/Chief Executive Officer, Femi Oyetunji, said: “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.

According to him, the Company recorded an underwriting profit of N746 million in 2016, a decrease of 42 per cent from N1.28 billion in Q3 2015. This modest outcome was primarily caused by the impact of a few large claims that compromised profit expectations.

He said: “investment and other income stood at N5.1 billion, a 212 per cent growth year-on-year. The significant growth was partially attributed to unrealised gains on hard currency assets as a result of foreign exchange movements following the sharp devaluation of the Naira. Profit before tax was N5.03 billion, (2015: N2.07 billion), 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 the upsets in some of our markets, the Company is poised to continue along a positive growth trajectory.”

Speaking further, he said: “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. We remain intensely focused on maintaining underwriting discipline and our focus on profitability over growth to further strengthen the Company.”

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