Continental Reinsurance Plc on Thursday announced a change in the ownership structure of Continental Reinsurance Ltd Botswana.
After its recent acquisition of a minority 40% stake in the company, through its holding company, CRAFIL, from Botswana Insurance Company Ltd (BIC), Continental Reinsurance now holds 100% of the issued ordinary share capital in the subsidiary.
Group Managing Director, Dr Femi Oyetunji, in a statement said: “The acquisition means not only growth in economic size, but also presents us with an opportunity to enhance our strategic influence and broaden our market appeal through the expansion of stakeholder segments that we actively interact with.
“Building on our talent growth and diversity strategy, we have appointed Mr Francis Nzwili, previously with our Nairobi subsidiary, as Managing Director of the Botswana business. Francis comes on board with a wealth of experience in underwriting and business development that significantly complements the strength of the existing team. The position of Managing Director was previously held by Mr Cas Hansa who has taken up new strategic responsibilities as Group Head: Underwriting and Claims,” he added.
According to the statement, the acquisition entrenches Continental Re’s stature as a strong pan-African reinsurance brand committed to delivering value to its customers and long-term sustainable profit growth and returns for all internal and external stakeholders.
As at half-year 2020, the Group has reported growth across all key metrics. Gross premium income at N26.8 billion (USD 71.7 million) reflects a 27 per cent growth over 2019. Underwriting profit at N2.7 billion (USD 6.9 million) grew by 442 per cent (2019: N457 million /USD 1.3 million).
Investment and other income at N1.4 billion/USD 4.6 million (2019: N1.2 billion/USD 3.6 million) reflect a 30 per cent year on year growth. Profit before tax at 4.4 billion/USD 12.3million (2019: N1.1 billion/USD 3.1million) represents a 300 per cent increase.
“The strong contribution to the Group’s half-year results from our entire network with offices in Anglophone West Africa, East Africa, Southern Africa, CIMA and North Africa, is a testament to the resilience wrought by our operating model that is anchored on geographic diversity. We shall continue to adapt and improve this model as we strive for superior efficiency,” said Dr Oyetunji.
“These results come as we brace for the impact of the Covid-19 crisis that continues to unfold. We remain cautiously optimistic regarding prospects for the year, overall, and, in conjunction with our partners, we look forward to better times ahead. We remain fully committed to playing our part in supporting our partners and the wider community through the pandemic, including prioritizing financial donations through industry bodies in our various jurisdictions for sustainable and equitable use for the benefit of local citizens.”