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Continental Reinsurance Plc is targeting gross earnings of N10.425 billion during the third quarter ending September 2011.
In a filing at the Nigerian Stock Exchange, the insurance firm also forecasts a profit after tax of N1.244 billion during the period under review.
The company said recently that it had mapped out strategies aimed at further repositioning the going concern for increased dividend yield to shareholders as well as expand its operations.
The managing director of the company, Mr. Femi Oyetunji, who stated this while addressing the capital market community during the company’s Fact Behind the Figures’ recently, said this has become necessary as the country with a population of 140 million has limited insurance penetration even as it was going to grow its shareholding from earnings in the shortest possible time.
Oyetunji said as a company which started operation in 1987, with over 200 clients presently, coupled with 43 branches in the African continent, its returns on investment would continue to delight investors.
According to him, the company has put strategies in place to strengthen its financial base for future growth and increase shareholders’ fund by an average of 10 per cent per annum between 2011 and 2015.
He noted that the company would increase its franchise value with a targeted share price of N4.00 by 2015, adding that with the strong expansion strategy put in place, the company may come to the market in the next two years to raise additional capital.
He said with a Board whose hallmark is integrity, transparency and hardwork, the company was geared towards growing its bottom line by 43 per cent on a yearly basis even as it targets a return on investment of 7 per cent for 2011.
Oyetunji said the company has so far grown its revenue from N12 billion to N16 billion in the year, noting that following the company’s consistent performance between 2004-2010, “ Non-life premiums averaged a growth of 41 per cent, Net Investment Income averaged a growth of 46 per cent, net income averaged a growth of 44 per cent.
With a consistent policy on dividend payout, Oyetunji said the company would be focusing more on existing clients with emphasis on geographic diversification for new growth opportunities outside Nigeria, just as total budgeted increase in management and administrative expenses was expected to be 13 per cent, in line with business growth, cost control measures and inflation.
Despite the challenges posed by the economy in the first quarter of 2011, the managing director said its entire market products performed relatively well compared to last year in the same period.
“The satisfactory performance in first quarter of 2011 was as a result of aggressive marketing and substantial growth in the facultative portion of the life business as well as healthy claims ratio in the first quarter, which was occasioned by the substantial reduction in cash calls related to the NNPC quota share scheme of 2010,” he said.
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