Government
attributed and commended the strong performance of Ghana Reinsurance Company to
the Board, Management and Staff of the company at its 17th Annual
General Meeting (AGM) in Accra last week.
Ghana
Re announced a group composite (life and general business) gross premium income
for 2019 of GH¢253.37m compared to the GH¢205.66m recorded in 2018,
representing a growth rate of 23.2%.
However,
a breakdown of the group shows that general business premium income recorded in
2019 was GH¢230.85m, while life premium income stood at GH¢22.52m.
George Otoo, Chairman
of the Board, noted that fire insurance as a line of business contributed
62.42% of the general business premium income, while accident and motor
insurance contributed 20.7% and 7.8% respectively to the portfolio.
“We would
not have been able to record this financial achievement in premium income
without the support of our loyal cedants; for that, I thank all our cedants for
contributing to our continued success,” the chairman said at the 17th
Annual General Meeting.
Announcing
further, he said management expenses recorded for the same period was GH¢41.43m
as against GH¢43.20m in 2018, representing a decrease in management expenses
ratio from 21.9% in the year 2018 to 19.7% in the year under review.
Profit
before tax for the period was GH¢40.80m, representing a 23.1% decrease on the
figure of Gh¢53.03m for 2018; while profit after tax was GH¢30.16m as against
GH¢38.63m in 2018. The slump in profit was attributed to higher than expected
claims in 2019.
George
Otoo indicated that based on the company’s performance, a dividend of GH¢0.18
per share was paid to sole shareholders - stressing that the board is committed
to the group’s sturdy growth and will continue to exercise its oversight
mandate to ensure profitability of the company.
On the
COVID-19 pandemic, the chairman stated that Ghana Re - as part of measures to
ensure business continuity and profitability - has activated its business
continuity plan and accelerated the company’s information technology
infrastructure upgrade.
He
further added that with a good retrocession arrangement and prudent management
practices, the company is well-positioned to meet its claims and other
financial obligations.
The chairman assured
shareholders that: “Ghana Re will employ and continually improve on its
technical expertise and information technology system to enhance the turnaround
time for service delivery. In addition, the company will seek to capitalise on
its strong financial base and unblemished reputation to increase acceptances of
non-traditional insurance products, forge strategic partnerships and position
the company in the face of growing competition”.
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