News Column

Continental Re Cautions Shareholders Over Divestment

July 21, 2014

Goddy Egene

Continental Reinsurance Plc last week cautioned shareholders in dealing in the shares of the company following the potential divestment by its foreign majority shareholders, C-Re Holding.

In a notification to the Nigerian Stock Exchange (NSE) of the potential divestment by ECP Africa Fund II PCC and its partners (the ECP Fund II Consortium) of their interests in C-Re Holding Limited. C-Re Holding is a Mauritius-based limited liability company wholly owned by the ECP Fund II Consortium is the majority shareholder in Continental Reinsurance Plc.

The majority shareholders holds about 50.6 per cent of the issued share capital of Continental Re.

"ECP Africa II PCC and its partners are exploring the potential divestment of their investment in C-Re Holding Limited, which holds a majority equity stake in Continental Reinsurance Plc. The company therefore advises shareholders to exercise caution when dealing in the company's shares until a further announcement is made," the NSE said last Friday.

Continental Reinsurance has been a leader in the African reinsurance sector for the past 25 years, operating in 43 African countries. It has been listed on the Nigerian Stock Exchange since 2007.

The company recently reported an increase of 28 per cent in gross premium income to N15.86 billion in 2013 from N12.40 billion recorded in 2012. Total comprehensive income grew by 19 per cent from N1.75 billion in 2012 to N2.09 billion in 2013.

Commenting on the results, the Managing Director of Continental Re Plc, Dr Femi Oyetunji, said: "It is to the great credit of our management team and to the entirety of our staff that the Company continues to grow its market share in key markets while adhering to prudent underwriting practices.

"The substantial growth in our non-Life and Life business is also a result of the Company's five-year growth strategy assisted by the economic growth in many African countries."

Based on the results, the directors have recommended a cash dividend of 11 kobo per share for the 2013 financial year, showing an increase of 10 per cent increase from the previous financial year.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters