Continental Reinsurance Plc is pleased to share its financial results for the year 2023, showcasing substantial growth and strong performance across various metrics.
Group Financial Performance
Implementation of IFRS 17
In 2023, Continental Re successfully implemented IFRS 17, enhancing transparency, consistency, and comparability in our financial reporting.
Gross Premium Income
Our reinsurance revenue increased to NGN 112.46 billion, up from NGN 86.36 billion in 2022, a 30% rise. This growth reflects our ability to attract and retain a growing customer base, demonstrating the trust our clients have in our services.
Net Reinsurance Service Result
The net reinsurance service result (underwriting profit) reached NGN 9.14 billion in 2023, compared to NGN 4.40 billion in 2022, representing a 108% increase. This growth indicates our strong risk management and effective underwriting practices.
Investment & Other Income
Investment and other income grew to NGN 30.61 billion from NGN 5.66 billion in 2022, showing a 440% increase. This growth highlights our successful investment strategies and diversification of income streams, with an improvement in the quality of our investment assets.
Profit Before Tax
Our profit before tax for 2023 was NGN 23.51 billion, rising from NGN 7.17 billion in 2022, a 228% increase. This improvement demonstrates our operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.
Regional Performance
Lagos
Lagos showed 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), highlighting operational robustness and profitability.
- Combined Ratio: 91.0% (2022: 91.8%)
- Written Premium Contribution: 31% (2022: 30%)
- Group Underwriting Result Contribution: 30%
- Group PBT Contribution: 73%
Nairobi
Nairobi improved its combined ratio, reflecting better underwriting discipline. Its contributions to the group’s underwriting results and PBT remain strong, highlighting its importance in our operations.
- Combined Ratio: 90.0% (2022: 92.4%)
- Written Premium Contribution: 31% (2022: 40%)
- Group Underwriting Result Contribution: 34%
- Group PBT Contribution: 18%
Gaborone
Gaborone’s better combined ratio indicates improved risk management and operational efficiency. The region’s contributions to both the underwriting result and PBT reflect balanced performance.
- Combined Ratio: 90.2% (2022: 95.1%)
- Written Premium Contribution: 16% (2022: 11%)
- Group Underwriting Result Contribution: 9%
- Group PBT Contribution: 8%
Tunis
Tunis improved its combined ratio, contributing significantly to the underwriting result. Its contributions to PBT indicate potential for further profitability enhancement.
- Combined Ratio: 90.2% (2022: 94%)
- Written Premium Contribution: 12% (2022: 13%)
- Group Underwriting Result Contribution: 22%
- Group PBT Contribution: 8%
CIMA
CIMA showed progress with a considerable reduction in the combined ratio, which is promising for future contributions. The current PBT contribution remains modest.
- Combined Ratio: 95.2% (2022: 109.0%)
- Written Premium Contribution: 17% (2022: 6%)
- Group Underwriting Result Contribution: 5%
- Group PBT Contribution: 2%
“We are very pleased with our financial performance for 2023,” said Lawrence Nazare, Group CEO of Continental Reinsurance. “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.”
