Page 13 - Continental Reinsurance 2022 Annual Report

Group Managing Director's Statement
Dear Shareholders and
Stakeholders,
In 2022, we witnessed evolving customer
expectations, technological disruptions,
and shifting regulatory dynamics.
However, despite these complexities,
Continental Re emerged stronger and
more resilient. Our strategic positioning,
diverse product portfolio, and customer-
centric approach to business ensured we
maintained our competitive edge and
exploited market opportunities.
Continental Re recorded remarkable
achievements in 2022 with impressive
growth in revenue from all lines of
business. Our performance has once again
demonstrated Continental Re's ability to
deliver even in difficult times.
Operating Environment
When we set out our result target for 2022,
no one could have imagined the
geopolitical and macroeconomic
upheavals the year would have in store:
the Russian military intervention and the
ensuing economic turbulence were not
foreseeable. Consequently, our
investments were subject to significant
volatility. The ongoing conflict between
Russia and Ukraine has had a significant
impact on energy costs, contributing to the slowdown to 4.2% due to rising inflation
escalation of global inflation that was
already on the rise. Considering this
situation, we have taken measures to
accommodate the anticipated increase in
claims expenditure due to the upward
trend in inflation.
According to data from the IMF, the global
economy demonstrated a growth rate of
3.4% in 2022, surpassing the earlier
forecast of 3.2% that was made in October
2022. However, it is essential to note that regional nuances while maintaining a long-
this figure fell significantly short of the
initial projection of 4.4% put forth in
January 2022. This discrepancy arises from
the anticipation of a gradual return to
normalcy in the global economy, which,
unfortunately, did not materialize as
expected. Key economies, including the
United States, China, and the Euro Area,
11
reported slower growth rates compared to
the previous year, with growth estimated
at 2.1% (compared to 2.1% in 2021),
“3.0% (down from 8.5% in 2021), and
Underwriting profit
3.5% (down from 5.4% in 2021), grew year-on-year by
respectively. 31% to NGN5.28 billion
(USD12.4million) and
In Africa, while many economies continued
their recovery from the pandemic's effects, Investment income
the growth remained insufficient to return
them to pre-pandemic levels. According to increased by 59% to
the African Development Bank, in 2022 NGN3.99billion
Central Africa recorded significant growth (USD9.38million)
of 4.7%, driven by favourable commodity compared to NGN2.51
prices, while Southern Africa decelerated billion(USD6.26million)
to approximately 2.5% due to subdued
growth in South Africa. West Africa's in 2021 with interest
growth stood at 3.6%, reflecting the income from bonds and
slowdown in Côte d'Ivoire and Nigeria, and statutory deposit
North Africa declined to 4.3% due to a dominating our
sharp contraction in Libya and drought in
Morocco. East Africa also experienced a investment income. The
combined ratio closed at“
and climate shocks. The African continent 91.7% - better than the
experienced varied economic dynamics in average on the
2022, with some regions showing continent which is
resilience and growth while others faced
challenges such as political instability, approximately 100%.
currency fluctuations, and infrastructure
deficits. Our ability to adapt to these
term perspective remained vital.