By THE AFRICA BAZAAR Staff Writer
Emerging Capital Partners, a Washington D.C.-based emerging-markets-focused private equity fund said Tuesday its Fund II portfolio company, Continental Reinsurance, reported a growth in gross premium income (GPI) of 28 percent and total comprehensive income of 19 percent.
Continental Reinsurance, one of the African reinsurance industry’s largest players, reported an increase of $100 million (N15.86 billion) in 2013 compared to NGN12.40 billion in 2012, and the total comprehensive income grew by 19 percent in 2013 to N2.09 billion from N1.75 billion in 2012.
The non-life and life businesses grew by 32 percent and 11 percent respectively, year-on-year.
The rise in Continental Re’s GPI is largely attributed to its product offerings and fast-paced expansion across Africa.
Speaking about the results, Continental Re Managing Director Femi Oyetunji said, “It is to the great credit of our management team and to the entirety of our staff that the company continues to grow its market share in key markets while adhering to prudent underwriting practices. The substantial growth in our non-Life and Life business is also a result of the company’s five-year growth strategy assisted by the economic growth in many African countries.”
The company is listed on the Nigerian Stock Exchange and has offices in Abidjan, Cote d’Ivoire-covering the francophone West Africa region, Lagos, Nigeria and Douala, Cameroun as well as Nairobi, Kenya and one it Tunis covering North Africa. It has also obtained a license to operate in Garborone, Botswana starting this year.
Continental Re plans to continue its growth and sustain profit for an even better performance in 2014, Oyetunji said.
The loss ratio remained unchanged over the year at 47 percent. Underwriting profit increased by 25 percent from NGN1.35bn in 2012 to NGN1.68bn in 2013, which Continental Re said was mainly due to a higher growth in premium, rather than an increase in combined costs.
Oyetunji added, “We are ready to meet the challenges ahead and take advantage of new and existing opportunities. I am confident that the group is positioned to continue to deliver strong profit and dividend growth for many years to come.”
ECP has raised more than $2 billion for growth capital investing across Africa, translating into investments in more than 55 African companies and over 30 exits through seven funds since it PEF was founded in 2000.
The firm was one of the first PEIs that took the risk and got its feet wet in the African markets through well-diversified investments in various sectors including financial services, telecommunications, retail and consumer, natural resources, agriculture and infrastructure and to date it has returned over $1 billion to its investors.