Forex Gain Lifts Continental Re’s Profit By 135.6%, Offers 14 Kobo Dividend

The board of Continental Reinsurance Plc, on Tuesday presented its audited result for the year ended December 31, 2016 to the Nigerian Stock Exchange (NSE), the highlight of which was that the company could have reported a loss before and after tax, but for the 769.11% rise in foreign exchange gain amounting to about N4.067bn, up from the previous N467.98m.
The profit also enabled the directors propose a dividend of 14 kobo per share, which was better than previous year’s 12 kobo.
The company also reported material increase in its unclaimed dividend funds held in Sterling Bank Plc account from N173.784m to N334.032m, jointly managed by Sterling Registrars and Continental Re, including interest income from 2011 to date of N128.285m.
According to the result, gross premium written for the period rose by N2.668bn or 13.51% from N19.738bn to N22.406bn, with insurance premium revenue of N25.312bn, as against N20.679bn, while net insurance premium revenue stood at N21.843bn, up by N3.648bn or 20.05% from N18.195bn in the corresponding full year of 2015.
Insurance claims and loss adjustment expenses rose from N9.04bn to N11.7bn; with insurance claims and loss adjustment expenses recoverable from retrocessionaire increasing significantly to N769.465mn from N289.96m. Underwriting expenses increased by N3.111bn or 42.12% to N10.498bn from N7.386bn, while insurance benefits and underwriting expenses came to N21.429bn, rising by N5.289bn or 32.77% from N16.139bn; resulting in underwriting profit of N414.549m, down by N1.642bn or 79.85% from N2.055bn in the 2015 financial year.
Interest income for the period amounted to N1.5bn, up from N1.12bn; fair value gains on investment properties rose to N623.082m from N147.107m; other income increased to N451.29m, as against the N604.74m in 2015.
Administrative expenses dropped to N632.066m from N999.753m; just as impairment of assets increased by N1.296bn or 263.47% from N492.055m in 2015 to N1.788bn.
Profit before tax therefore came to N4.651bn, rising by N1.736bn or 59.54% from N2.915bn to N4.651bn; while despite the N760.247m or 98.37% increase in income tax expense, net profit stood at N3.118bn, up by N2.905bn or 135.61% from N2.142bn, representing Earnings Per Share of 28 kobo, up from the previous 19 kobo.
Total comprehensive income for the year came to N5.435bn, up by N3.534bn or 185.83% from N1.901bn in 2015.

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