Despite unprecedented challenges across Africa resulting from the COVID-19 pandemic, Continental Reinsurance has posted a 29% increase in gross premium income for the first quarter of 2020.
As the group reports an overall increase in gross premium income to NGN 11,560 million for the period, and with contributions from across its six locations remaining strong and steadily growing, Dr. Femi Oyetunji, Group Managing Director, cautioned “The pandemic has alerted us to expect variations in key performance metrics, which are highly likely to impact our annual objectives.
“COVID-19 has caused extreme personal distress and challenged business sustainability across the world. However, it has also created an environment for greater collaboration, innovation, and digital transformation, particularly within the insurance industry. As insurers, we should be demonstrating our value more effectively as lubricants of the economy and create greater cohesion with other sectors of our economies. As we do with the UN–Principles of Sustainable Insurance, steadfastly integrate our global efforts to proactively prevent and manage climate-related catastrophes and pandemics.
“Certainly, as insurance leaders, we are focusing attention on the crisis on the continent by working with industry players to contribute towards resolving this challenge. We are closely monitoring developments in our markets. We have instituted internal protocols to protect our staff while supporting our clients uninterruptedly and have the right strategies to trigger a return to normal – health concerns and government permitting.
“As the pandemic continues, we have also prioritized financial donations through industry bodies in our various jurisdictions to be used sustainably and equitably for the benefit of the citizens.”
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Underwriting profit at NGN 1,565 million for Q1 of 2020 represents a 622% increase in comparison to the same quarter previous year (NGN 217 million) demonstrating an increased emphasis on underwriting discipline and cost control.
Profit before tax at NGN 2,479 million was a 446% increase over the same period last year.
A 14% increase in claims incurred amounting to NGN 4,675 million, represents Continental Reinsurance’s continuing commitment to meet its obligations in support of its clients.
Investment and other income stood at NGN 555 million; a 6% decline owing to a low-interest regimen and bearish markets.
Summary of performance (NGN Millions)
| Income statement | |||
| Q1 2020 | Q1 2019 | % Change | |
| Gross Premium Income | 11,560 | 8,992 | 29% |
| Claims Incurred | 4,675 | 4,103 | 14% |
| Underwriting Profit | 1,565 | 217 | 622% |
| Investment & Other Income | 555 | 588 | (6%) |
| Profit Before Tax | 2,479 | 454 | 446% |
| Profit After Tax | 1,882 | 362 | 420% |
| Statement of financial position | |||
| Q1 2020 | Q1 2019 | % Change | |
| Total Assets | 68,102 | 66,762 | 2% |
| Investment Portfolio | 26,407 | 26,254 | 1% |
| Reinsurance Reserves | 30,575 | 30,554 | 0.1% |
| Shareholders’ Funds | 30,535 | 30,186 | 1% |
