CRe shareholders warn against NSITF ECB
By Patience SAGHANA
Shareholders of Continental Reinsurance Plc have strongly reacted to the Employee Compensation Bill (ECB) being sponsored by the Nigerian Social Insurance Trust Fund (NSITF) to take Workmen’s Compensation from the purview of insurance industry.
The shareholders at the 2009 Annual General Meeting of the reinsurer in Lagos recently, said it would not be fair to the insurance industry if the ECB is passed into law.
They however blamed the low level of insurance penetration on a number of anti-insurance laws which the churned out by the National Assembly in the last 10 years.
Meanwhile Continental Re posted N7.4 billion premium income for the year ended December 31, 2009 against N5.2 billion recorded in 2008, representing a growth of about 42 percent.
Engr Akin Laguda, the company’s chairman made this know at the reinsurer’s AGM The breakdown showed that non-life business grew by 61 percent from N4.04 billion in 2008 to N6.5 billion in 2009, while life business declined by 27 percent from N1.24 billion in 2008 to N901 million in 20009.
He explained that the decline in life premium was due to the fact that some policies were cancelled during the period and the fact that the company’s management decided not to participate in large volume businesses due to their adverse claims experience.
The company’s profit before tax increased by 64 percent from N557 million in 2008 to N979 million in 2009, while its profit after tax rose from N473 million in 2008 to N905 million in 2009.
During the same period under review, the shareholders fund of Continental Re increased marginally from N11.13 billion to N11.16 billion while its balance sheet grew from N14.3 billion to N15.6 billion.
Laguda also informed that the regional expansion drive embarked upon by the company was already yielding good results as the regional offices were able to contribute about 8 percent to the company’s total premium income. He added that this development is in line with the management desire to stimulate growth from other sub-regions of the continent, thus ensuring a balanced business mix over time.
Impressed by the results posted by the company during the last operating year, the board of directors recommended a cash dividend of 5.5 kobo per share and this was approved by the shareholders at the yearly meeting.
He further expressed hopes that the future of the company could only get better as the management is strategising to put in place an enduring structure that would properly positioned for profitability on the continent.
Continental Re was registered in 1985 as a professional reinsurance company to transact non-life reinsurance business. It commenced business in 1987. Life reassurance business was commenced in January 1990, the requisite license having been obtained in September 1989. In 1999, Continental Re was converted to a Public Limited Company (PLC).
Today, the company transacts business in life and non-life classes, facultative and treaty in over 35 African countries.
As a customer driven company, Continental Re pays high premium to the needs and requirements of our ceding companies in recognition of the benefits of long-term association and partnership.
