Continental Reinsurance Plc (Continental-Re), one of the two licensed reinsurance companies in the country, said it has recorded a 15 per cent improvement on its gross premium income for the third quarter of this year.
According to the company, its premium income rose from N9.9 billion in the third quarter of 2012 to N11.30 billion as at September 30, 2013.
The Managing Director of the company, Dr. Femi Oyetunji, disclosed this in a statement in Lagos recently, attributing the improvement to the sustenance and development of underwriting relationships with existing and new clients and strict adherence to underwriting prudence.
“In the third quarter of 2013, we continued to see favourable trends across our key core business indices. We sustained the momentum achieved during the first half of the year with gross written premium growing by 15 per cent. Overall, we are progressing towards achieving our 2013 performance objectives,” he said.
According to Oyetunji, the report for the third quarter shows that Continental-Re raked in retrocession premium worth N 1.40 billion reflecting a retrocession ratio of 12.40 per cent, which is slightly higher than the previous period of 11.40 per cent.
Its loss ratio was 47.90 per cent (2012: 47.40 per cent), mainly because there were no major catastrophic events during the year under considering even the company was expecting to achieve a strong combined ratio by the end of the year.
“The firm’s net acquisition expenses ratio stood at 31 per cent and was higher than last year’s ratio of 27.6 per cent,” he said.
Oyetunji also disclosed that the firm’s management expenses for the period under review hovered around N1 billion; a 22 per cent increase over the N830.20 million recorded in the corresponding period of last year.
He noted that the ratio of management expenses to net premium income was 10.20 per cent and slightly higher than the 9.50 per cent recorded in 2012.
Continental-Re’s underwriting profit rose by 20.30 per cent from N1.10 billion in 2012 to N1.33 billion in 2013 mainly due to a higher growth in premium than the increase in combined costs, while its underwriting profit ratio as a percentage of gross premium income 12 per cent as against the 15.4 per cent recorded in 2012, he stated.
The firm boss also noted that investment and other income raked in by the firm at the third quarter of 2013 peaked at N 879.30 million; a 9 per cent shortfall from the N 970.90 million it recorded last year.
Out of this, the firm made provisions for bad debts to the tune of N3.10 billion as against the N2.82 billion it provided for in the corresponding period of last year.
The firm’s profit before tax for the period was N1.70 billion, which translates to an 8.90 per cent improvement on the N 1.60 billion it made in the corresponding period of last year.
Its profit after tax for the third quarter of this year was N1.4 billion as against the N 1.20 billion recorded in the corresponding period of last year and a 7.90 per cent improvement in performance, Oyetunji said.
According to him, total asset being managed by the firm was grown by eight per cent to N25.90 billion from N24.10 billion as at December 2012, adding that the appreciation was mainly due to an increase in investment and fixed asset.
He also noted that shareholders’ funds in the firm rose to N13.50 billion as at the end of the third quarter of this year. The figure, as at December 31, 2012, was N13.23 billion; a 3 per cent improvement in nine months.
The firm’s boss also said its return on equity was for 2012 and in the third quarter of this year was 13 per cent even as he expressed confidence that the future would be brighter.