Nigerian company Continental Reinsurance plans to double premium income from its property and engineering business to US$80mn in the next five years, said executive director Lawrence Nazare
The company’s decision to double its premium income was taken after analysing the lead up to Africa’s very likely infrastructure boom, especially in construction. The property and engineering business has contributed 44 per cent to Continental Reinsurance’s total revenue, but executive director Lawrence Nazare said it could grow to 50 per cent in the next five years.
A Deloitte report has stated that Africa’s construction projects were worth US$325bn in 2014, up nearly 50 per cent from 2013, even as power, transport, oil and gas and construction sectors expanded rapidly. At such a time, insurance companies are pushing for growth in the continent where many people are uninsured, banking on growing premiums as the continent develops its infrastructure and catering to an aware consumer class that’s demanding protection from risk.
Specifically, Continental Reinsurance recently opened a branch in South Africa with an aim to double its reinsurance market to 10 per cent over the next five years, stated Nazare.
“We are in the process of arranging deals that would allow us to provide at least US$100mn in each of the deals we are involved in this year,” he said. Last year’s transactions were of about US$20mn each.
