Continental Re, the reinsurance group listed on the Nigerian Stock Exchange, declared a net profit of NGN2.11 billion ($5.8 million) for the first nine months of 2018. This performance represents a drop of 32% on a year on year basis.

Yet, the reinsurer collected NGN26 billion premiums from its clients, a turnover 27% higher on a year to year basis. Even net premiums (premiums minus commissions) was about NGN22 billion.  

The poor performance of its net margin seems to be the result of its claims settlements which rose to about NGN4 billion during the period under review. In addition, the reinsurer was unable to reduce subscription expenses which were about NGN9 billion.

The performance of this company will now be closely monitored by the South African insurer Sanlam which finalized the complete acquisition of Saham Finance, which owns 51% of C-Re Holding, majority stakeholders of Continental Re with a total of 65.2% since late 2017.

Idriss Linge