Continental Reinsurance Grows Gross Premium Income By 30% To N112.46 Billion In 2023

Lawrence Nazare, Group CEO of Continental Reinsurance

Continental Reinsurance Plc has released its financial results for the year ended December 31, 2023, showcasing substantial growth and strong performance across various metrics.

According to a statement by the Company, in 2023, Continental Re successfully implemented IFRS 17, enhancing transparency, consistency, and comparability in our financial reporting.

The Company’s reinsurance revenue increased to N112.46 billion, up from N86.36 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.

The net reinsurance service result (underwriting profit) of the firm reached N9.14 billion in 2023, compared to N4.40 billion in 2022, representing a 108% increase. This growth indicates our strong risk management and effective underwriting practices.

Investment and other income grew to N30.61 billion from N5.66 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.

The Reinsurer’s Profit Before Tax for 2023 was N23.51 billion, rising from N7.17 billion in 2022, a 228% increase. This improvement demonstrates the Continental Reinsurance’ operational efficiency and strong overall performance, driven by deliberate forex management strategies and initiatives.

On Regional Performance, 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 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’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 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 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. 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, Lawrence Nazare, Group CEO of Continental Reinsurance said.

About Continental Reinsurance
Continental Re is the largest private pan-African reinsurer committed to delivering exceptional services and value to our clients and stakeholders. With a robust portfolio and a dedicated team, we strive to achieve excellence and sustainable growth