The Nation Newspaper

Tag: Continental Reinsurance Plc

  • N1.7bn excess taxation: Tribunal strikes out suit, orders fresh appeal

    The Tax Appeal Tribunal in Abuja has struck out a suit by 44 Insurance Companies against the Federal Inland Revenue Service (FIRS) on a N1.7 billion overpaid stamp duties judgment variation.

    Continental Reinsurance PLC and 43 others had on Nov.19, 2018, filed a motion for an order for variation of a consent judgment delivered by the tribunal on May 10, 2016, having noticed the shortfall in the judgment amount.

    The appellants had consequently sought for an order of the court for the payment of N1, 730, 472, 420 by FIRS as refund of excess stamp duties paid in their respective share capital.

    They averred that the overpaid stamp duties to FIRS occurred during the re-capitalisation of insurance companies between 2002 and 2006.

    The appellants’ action was aimed at compelling FIRS to refund the money without further delay.

    Consequently, the parties agreed to an out-of-court-settlement leading to a consent judgment delivered by the tribunal.

    However, the insurance companies had approached the tribunal with a motion for the variation of the judgment where the tribunal had erroneously entered N1.5 billion as the amount in dispute.

    But the new tribunal chairman, Mrs Alice Iriogbe, on Wednesday ordered the appellants to file afresh their suit, saying that the panel could not act on the previous proceedings of the previous panel.

    Iriogbe ruled that whatever the parties were filing should be fresh because the panel was not a party to the consent judgment delivered by the previous panel.

    “Your filings should be detailed; file a fresh appeal. The appeal is officially struck out, all filings should be fresh with current dates” she ordered.

    NAN

  • Continental Re expands to Cameroon, appoints Oumar Ba as CEO

    As part of its expansionist drive, the Continental Reinsurance Plc has completed the incorporation of a subsidiary office in Douala, Cameroon. This status is a key milestone in its strategy of operating through a network of well-capitalised subsidiaries across Africa.

    Justifying the move, the Dr Oyetunji, Group Managing Director of Continental Reinsurance Plc said: “This development reinforces our commitment to the CIMA region and our valued partners. We already have a strong local team on the ground, and our goal is to utilize our new status to maximise value.”

    The move is in line with the new CIMA Code in the Francophone region which requires a reinsurance company based in a Member State to be established as a limited liability company and further permits a reinsurance company with its head office in a Member State to install a branch in another member state.

    The company started its operations in Douala in 2004 as a branch office and later opened its Abidjan office in 2012 to diversify its activities in the CIMA region.

    Dr Oyetunji added: “At the same time, we’re delighted to announce that we have appointed Mr Oumar Ba as the Chief Executive Officer of the newly established subsidiary, effective immediately.  Given our new status, we believe he will be able to leverage on his expertise and track record to capitalize on the current demand for localised service and we look forward to Oumar helping us develop that further in the CIMA region.”

    Oumar brings over two decades of experience to the Company.  Most previously, he served at Swiss Re as Regional Manager (West Africa – Anglophone).   Prior to that, he held roles as Senior Client Manager (Swiss Re Africa / Swiss Re Zurich), Property Underwriter (Swiss Re Africa / Johannesburg) and also worked with Salama Assurances (Senegal).

    Mr. Oumar BA commented, “I am pleased to be joining Continental Re as CEO for the CIMA region.  I take up the role with great enthusiasm for the industry and look forward to driving the operational execution of our strategy and deepen our influence over time.”

    Continental Reinsurance Plc handles Anglophone business through a branch office in its head office in Lagos.  Its Tunis office caters for its Northern African/Maghreb clients, while the subsidiary based in Gaborone, Botswana handles its Southern African operations. In Nairobi, the Kenya subsidiary handles the Eastern operations.

    Continental Re has been established on the continent for over 30 years, having started its operations in 1987.

  • Continental Re restructures, sets up holding company in Mauritius

    As part of its expansionist drive, Continental Reinsurance Plc shareholders have approved to the scheme of arrangement of restructuring of the businesses of CRe Nigeria in enhancing the growth and sustainable increase in the company’s profitability.

    Under the scheme of restructuring, CRe Investments will offer the shareholders of CRe Nigeria the option to receive either one ordinary shares of $1 each in the capital of CRe Investments for 176 ordinary share of 50 kobo each in the capital of CRe Nigeria as at the effective date; or N2.04 per ordinary share of 50 kobo each held by the shareholders as at the effective date

    Besides, only shareholders with three per cent or more of the shares of CRe Nigeria will be able to take shares directly in CRe Investments, while all other shareholders who opt to receive shares will be issued shares of the Nominee, as a result of which they will be entitled to an indirect interest in CRe Investments.

    Addressing some journalists in Lagos at the weekend, the Group Managing Director/CEO of Continental Reinsurance Plc, Femi Oyetunji said that in order to consolidate its gains and reposition the company for enhanced competitiveness, it has become imperative to restructure the company with the aim of enhancing capacity which will drive significant business growth and profitability for the group.

    He said that the key driver of competitiveness is financial strength underscored by ratings and capital, saying that ratings and capital increasingly determine business quality and volume and confer preferred status by ceding companies, thereby creating access to profitable big ticket business.

    According to Oyetunji, currently, CRe Nigeria has a ‘B+’ rating and we aim to attain an A rating by 2020. Current market trends show an increasing demand for A-rated reinsurers by primary insurers, particularly for speciality lines.

    He noted that “in Nigeria for example, you cannot underwrite oil and gas if you are not ‘A’ rating. The only reason we are allowed to write oil and gas even the insurance companies is because of the exemption National Insurance Commission (NAICOM) has granted because we are local companies.

    “It is most important that for us to achieve ‘A’ rating, which will then give us the ability to transact the right kind of businesses that will give us exposure to better and higher quality risks, which has made us to embark a restructuring. Going by the rating agencies, the rating is directly or indirectly limited by domicile head office.”

    Expatiating, the Continental Re boss recalled that “In 2012, the company was upgrade to B rating, in term of what we could do internally our enterprise risk management and the quality of our underwriting process, we have gone too notches above the sovereign rating of Nigeria.”

    Pressed further, he said that the company looked for an environment with higher rating that will assist us to get to where the company is position to be, stating that after careful selection, the company chose to set up the holding company in Mauritius, North Africa and the rating will be in Mauritius environment when looking at the company’s business.

    He stated that this has nothing absolutely to do with Nigeria current business, we are not exporting capital, not losing any staff, not losing any business because we still have a license given to us by NAICOM to underwrite business.

  • Pan African re/insurance journalism awards opens

    Pan African re/insurance journalism awards opens

    Continental Reinsurance Plc has announced the open of the Pan African re/insurance journalism awards for English and French speaking Journalists in the re/insurance sector in Africa.

    Similarly, the leading Pan African reinsurance firm announced the judging panel for its third Pan African Re/Insurance Journalism Awards, which closes on January 31st, 2018.

    The re/insurance firm made this known in a press statement released to Journalists on the Africa Press team recently.

    The statement reads in part: “Nadia Mensah-Acogny, Journalist, Shelter Afrique, will be the chair for the independent Judging Panel. Other judges are: – Tony Van Niekerk, Editor of South Africa’s Cover Magazine; Afif Ben Yedder, Founder, IC Publications; Michael Wilson, Business and Finance Journalist and Julia Graham, Technical Director, Airmic.

    “The Awards are currently open for submissions to both English and French-speaking journalists covering the re/insurance sector in Africa. Deadline for submissions of entries is January 31st, 2018.”

  • Investors swap major stakes in Continental Reinsurance

    Investors swap major stakes in Continental Reinsurance

    Continental Reinsurance Plc appeared to have started witnessing major changes in its shareholding structure as voluminous transactions placed the insurance firm atop the activities’ chart for the stock market.

    Continental Reinsurance accounted for more than one-fifth of the aggregate turnover at the stock market last week. Trading on the insurance company was particularly the highlight of the market at the last trading session with the exchange of 208.34 million shares valued at N208.34 million in 25 deals. The last-day transactions pushed Continental Reinsurance’s total turnover for the week to N288.6 million shares valued at N289 million in 117 deals, representing 21.1 per cent of the aggregate turnover volume for the week.

    However, Continental Reinsurance’s turnover represented 2.78 per cent of its outstanding shares. Market analysts said the transactions, especially on Friday, were indicative of a cross deal, implying possible agreement between the buyer and seller before the perfection of the deal at the Nigerian Stock Exchange (NSE).

    The majority core investors in Continental Reinsurance recently indicated that they were seeking to fully divest their shareholdings in the holding company that holds 50.6 per cent equity stake in the insurance company.

    Regulatory filing indicated that the core investors, which indirectly hold 50.6 per cent equity stake in Continental Reinsurance, have started the full divestment process.

    According to the report, ECP Africa Fund II PCC and its partners, which form the ECP Fund II Consortium, are exploring the opportunity for the divestment of their interests in C-Re Holding Limited, a Mauritius-based limited liability company wholly owned by the ECP Fund II Consortium.

    C-Re Holding Limited is the majority shareholder in Continental Reinsurance, currently holding approximately 50.6 per cent of the issued share capital of the company. C-Re Holding is expected to sell approximately 5.25 billion ordinary shares of 50 kobo each.

    Continental Reinsurance was incorporated in 1985 and started business as a private reinsurance company in Nigeria. In January 1987, it began to operate as a general reinsurer and then became a composite reinsurer in January 1990, offering both treaty and facultative life and non-life reinsurance, with a well-diversified business mix and customer base.

    As part of its goal to become a recognized leading reinsurance company in Africa, it converted to a public limited liability company in 2000. After it recapitalized to the tune of N10 billion in 2007, it listed its shares on the NSE in May 2007.

    With five client service centres in Nigeria, Cameroon, Cote d’Ivoire, Kenya and Tunisia with Nigeria as headquarters, it has grown a diversified portfolio across 43 countries.

    Continental Reinsurance recently reported that its gross premium increased by 28 per cent to N15.86 billion in 2013 as against N12.40 billion in 2012. The company indicated that non-life and life businesses grew by 32 per cent and 11 per cent, respectively, while the total comprehensive income grew by 19 per cent from N1.75 billion in 2012 to N2.09 billion in 2013. Profit before tax rose by five per cent to N2.23 billion in 2013 compared with N2.13 billion in the previous year while the profit after tax rose to N 1.75 billion as against N1.73 billion in 2012. The company is paying a dividend per share of 11 kobo.