Continental Reinsurance Plc has released its financial results for 2023, showing notable growth and strong performance across various metrics.
In 2023, Continental Re successfully implemented IFRS 17, which the reinsurer says enhances transparency, consistency, and comparability in financial reporting.
Reinsurance revenue increased to NGN 112.46 billion, up from NGN 86.36 billion in 2022, a 30% rise. This growth reflects the company's ability to attract and retain a growing customer base, indicating the trust clients have in its services.
The net reinsurance service result, or underwriting profit, reached NGN 9.14 billion in 2023, compared to NGN 4.40 billion in 2022, representing a 108% increase. This growth is attributed to strong risk management and effective underwriting practices.
Investment and other income grew to NGN 30.61 billion from NGN 5.66 billion in 2022, showing a 440% increase. This growth underscores the company's successful investment strategies and diversification of income streams, with an improvement in the quality of investment assets.
Profit before tax for 2023 was NGN 23.51 billion, up from NGN 7.17 billion in 2022, a 228% increase. This improvement highlights operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.
Lagos demonstrated consistent performance with a slight improvement in the combined ratio compared to last year. It remains a strong contributor to both underwriting results and profit before tax (PBT), reflecting operational robustness and profitability. The combined ratio was 91.0%, compared to 91.8% in 2022. Written premium contribution stood at 31%, up from 30% in 2022. The region contributed 30% to the group underwriting result and 73% to group PBT.
Nairobi showed an improved combined ratio, reflecting better underwriting discipline. Contributions to the group’s underwriting results and PBT remain strong. The combined ratio was 90.0%, compared to 92.4% in 2022. Written premium contribution was 31%, down from 40% in 2022. The region contributed 34% to the group underwriting result and 18% to group PBT.
Gaborone’s improved combined ratio indicates better risk management and operational efficiency. Contributions to both the underwriting result and PBT reflect balanced performance. The combined ratio was 90.2%, compared to 95.1% in 2022. Written premium contribution was 16%, up from 11% in 2022. The region contributed 9% to the group underwriting result and 8% to group PBT.
Tunis improved its combined ratio and significantly contributed to the underwriting result. Contributions to PBT indicate potential for further profitability enhancement. The combined ratio was 90.2%, compared to 94% in 2022. Written premium contribution was 12%, down from 13% in 2022. The region contributed 22% to the group underwriting result and 8% to group PBT.
CIMA showed progress with a considerable reduction in the combined ratio, which is promising for future contributions. The current PBT contribution remains modest. The combined ratio was 95.2%, compared to 109.0% in 2022. Written premium contribution was 17%, up from 6% in 2022. The region contributed 5% to the group underwriting result and 2% to group PBT.
Lawrence Nazare (pictured above), group CEO of Continental Reinsurance, commented on the results, highlighting the strong results for the previous year.
“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,” Nazare said.
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