Page 14 - Continental Reinsurance 2022 Annual Report

12 Group Managing Director's Statement
The regulatory environment for the
industry continued to evolve.
Compliance with changing regulations,
including solvency requirements and
reporting standards, remained a priority.
We embraced these changes as
opportunities to enhance our
governance, risk management, and
transparency. Also, the rapid pace of
technological advancements presented
both opportunities and challenges. The
increasing digitalization of the insurance selected client segments, markets, and
and reinsurance value chain required us
to invest in technology to remain
competitive and relevant. We continued
our digital transformation journey to
improve efficiency and offer innovative
solutions to our clients.
Performance Summary
Despite the volatile market conditions,
our key performance indicators attest to
the fact that Continental Re is heading in premium collection prevalent across
the right direction. In 2022, the group's
Gross written premium grew year-on-
year by 47% to NGN103.21 billion
(USD242.589 million), Profit before tax
(PBT) grew year-on-year by 27% to
NGN8.43 billion (USD19.829million),
Underwriting profit grew year-on-year
by 31% to NGN5.28 billion
(USD12.4million) and Investment
income increased by 59% to
NGN3.99billion (USD9.38million)
compared to NGN2.51
billion(USD6.26million) in 2021 with
interest income from bonds and
statutory deposit dominating our
investment income. The combined ratio
closed at 91.7% - better than the
average on the continent which is
approximately 100%. The group also
delivered a return on equity (ROE) of
15% while maintaining its B+ AM Best
rating.
Strategy Review
In pursuit of our long-term vision, which
is to establish ourselves as the premier
Pan-African reinsurer, Continental Re's
Board and Management have recently
updated our medium-term strategy for
the years 2022 to 2024. This strategic
update places a strong emphasis on four
pivotal objectives aligned with our
ambition. These objectives include
achieving profitable growth, becoming
a customer-centric company, achieving
operational excellence, and building a
smart execution culture.
We firmly believe that a relentless focus
on these four goals will propel us toward
the realization of our vision. In our
pursuit of profitable growth, we will
continue to prioritize disciplined
underwriting practices within carefully
lines of business to ensure that we
expand our market share without
compromising shareholder value. We
will also continue to enhance our asset
management capabilities to optimize
investment returns, recognizing that
premium collections play a pivotal role
in boosting investible funds and,
consequently, our investment returns.
Acknowledging the challenge of
Africa, we are committed to
implementing a range of initiatives to
address this issue effectively. We aim to
further fortify our financial position and shareholders for your patience and
drive sustained growth as we continue
our journey to become the premier Pan-
African reinsurer.
Risk Management and Compliance
In an increasingly complex risk
landscape, we maintained a strong
focus on risk management and
compliance. We continuously
monitored and assessed risks, ensuring
robust underwriting practices. Our risk
management framework has enabled us
to maintain a healthy risk appetite, while Yours Sincerely,
diligently adhering to regulatory
requirements and industry best
practices. We are committed to
upholding the highest standards of
governance and transparency.
Talent Management
At Continental Re, we are very
conscious of the fact that building a
culture of high performance among
employees goes a long way to ensuring
competitiveness and attracting the best
talents. As an organization that aims to
recruit and keep the best talent, we have
revamped our employee management
practice, ensuring that remuneration
and other levers of employee
engagement are benchmarked against
leading organizations. We have placed a
high value on learning and
development, and to this end, we
continuously invest in training programs
targeted at improving staff skills and
capacity across various functions.
Conclusion
While we hold optimistic expectations
for the year 2023, we are fully aware of
the unpredictable nature of geopolitics
and the economy, as well as the
potential impact of regulatory changes,
foreign exchange fluctuations, and
shifting customer preferences. These
obstacles have necessitated our ability
to adapt quickly, think creatively, and
implement innovative approaches to
ensure our business remains relevant.
On behalf of the Board, I would like to
thank all our employees for their
dedication, our customers for their
loyalty and patronage, and our
confidence in our Board and
Management. We remain focused on
our mission to protect and serve our
customers, generate sustainable returns
for our shareholders, and contribute to
the growth and development of Africa's
reinsurance sector. Together, we will
navigate the challenges and capitalize
on the opportunities, ensuring a bright
and prosperous future for Continental
Re.
Lawrence Nazare
Group Managing Director