The ratings of Continental Re reflect its strong, albeit declining, consolidated risk-adjusted capitalisation, solid operating performance and established profile in its core domestic market. Offsetting rating factors are the group’s rising investment risk profile and exposure to Nigeria’s challenging economic environment.
Continental Re’s consolidated risk-adjusted capitalisation remains strong, reflecting its low net underwriting leverage, although tempered by its rising investment risk profile. At year-end 2015, real estate investments, unlisted fixed income and equity securities accounted for 37% of total investments compared with 32% in 2014. However,
The group’s operating performance improved in the first half of 2016, with a net income of
Provisions established for outstanding premiums debtors accounted for a quarter of gross written premiums in 2015, a marginal decline compared with the previous year. However, approximately 75% of these receivables maintained a duration of greater than a year. Although Continental Re continues to benefit from the “No Premium, No Cover” legislation, which supports its timely collection of premiums derived from
Continental Re maintains an established business profile in
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