The Group Managing Director, Continental Reinsurance Plc, Femi Oyetunji, said the company’s profit before tax soared by 46 per cent to N1.1bn in the first quarter of the 2015, up from N764m in the profit grossed in the corresponding period of 2014.
In statement, Oyetunji noted that the performance reflected the benefits of the firm’s diversified client base of over 200 insurance entities across Africa.
He said: “Underpinning our strategy is our commitment to sustainable growth and profitability through the localisation of our operations in key markets. We aim to continue to escalate our returns from the investments we have already undertaken that are focused on meeting market demand and ultimately positioning our company for sustainable growth and profitability.”
Oyetunji added that the company profit after tax soared by 38 per cent to N837m in the period under review from N606m in the corresponding period of 2014, stating that its gross premium income jumped by 12.6 per cent to N4.9bn in the first quarter of this year from N4.3bn in the first quarter of 2014.
He noted that underwriting profit decreased by 26 per cent to N479m in 2015 from N651m in 2014, saying the development reflected a strong performance displaying positive outcomes across most key technical indices, but dampened by an adverse development in the claims ratio due to settlement of the US dollar denominate claims that were inflated by the effects of negative currency movement experienced in the last quarter of 2014.
He added that the company’s loss ratio, increased to 49.3 per cent from 42.9 per cent due to the impact of high claims for both life and non-life business, while the company’s total assets grew by 13.3 per cent to N30.7bn in 2015 from N27.2bn in 2014.
Shareholders’ funds rose to N16.2bn from N14.7bn and its return on equity for the quarter stood at five per cent which was higher than the four per cent recorded last year, he added.