Press Release - NOVEMBER 30, 2018

A.M. Best Affirms Credit Ratings of Continental Reinsurance Plc


CONTACTS:
 Rishwinder Grewal
Financial Analyst
+44 20 7397 0321
rishwinder.grewal@ambest.com

Tim Prince
Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - NOVEMBER 30, 2018
A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Continental Reinsurance Plc (Continental Re) (Nigeria), the operating holding company of the Continental Re group of companies. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Continental Re’s balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management.

A.M. Best expects Continental Re’s balance sheet strength to remain supported by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). Over recent years, increasing capital requirements have been driven by the company’s aggressive growth strategy and compounded by exposure to unquoted equities. During 2018, the company is expected to receive a total capital injection of USD 25 million to support its strategic initiatives.

Continental Re has maintained adequate operating performance over the past five years despite the challenging macro-economic environment in which it operates. Underwriting results improved materially in 2017, with the company reporting an underwriting profit of NGN 323 million (USD 0.9 million) driven primarily by the absence of major losses and the stabilisation of acquisition and operating expenses. Over time, as it implements its growth strategy, A.M. Best expects the company to benefit from economies of scale and improve its underwriting performance. Although Continental Re’s portfolio remains concentrated to Nigeria, which accounts for approximately half of its gross written premiums, it continues to develop its profile across Africa through the establishment of regional subsidiaries, which act as hubs that improve access to various markets.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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