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Government, major shareholder of Ghana Reinsurance Company, has commanded the Board, management and spectacular performance in the 2014 financial year.
The statement, which re-echoed the company’s, applauded Ghana Re for being one of the exemplary state-owned investments that has persistently improved on its dividend payment year on year.
By the close of 2014, Ghana Re’s direct payment to government totalled GH?27.44million, which included GH?5.6million -- an increase of 87% -- as dividends corporate taxes.
More importantly, all other financial indicators showed an impressive performance right from income generated to profitability.
Ghana Re recorded 56% increase in net profit before tax (PBT) from GH?36.60million in 2013, while composite gross premium grew by 40% to GH?104.39million from GH?74.79million in 2013.
A breakdown indicates that general business gross premium grew to GH?95.95million from GH?68.51million. Life business premium income rose from GH?6.2million in 2013 to GH?8.4million in the year under review, indicating an increase of 35%.
Significantly, the improvement was as a result of improvement in premium collection.
The growth in income was also underpinned by 76% increase in premium income written from markets outside Ghana, which amounted to GH?40.55million compared to GH?23.40million in 2013; the local market increased by 35% to GH?55.39million in 2013.
The company’s claim ratio increased from 46% in 2013 to 56% in 2014 as a result of historical claims submitted by cedants following the National Insurance Commission (NIC) directive to companies to reconcile outstanding balance claims incurred in 2014, amounting to GH?48.65million compared to GH?28.27million in 2015.
Although Ghana Re’s management expenses increased marginally to GH?33.90million from GH?30.57million in 2013, it is noteworthy that the expense ratio decreased from 45% in 2013 to 37% in 2014.
Notably, too, Ghana Re’s composite balance sheet expanded by 14.20% in 2014 -- with total assets to total liabilities ratio of 3.28 in 2014 as compared to 2.89 in 2013. It is worth noting that 98% of the assets are held in investments.
Lionel Mobilla, Chairman, Ghana Re’s Board, noted that the challenges in 2014, though daunting, were surmounted by the company as evidenced by its performance in the year. However, he observed that they will continue to build a stronger and more resilient company.
“Our strategic focus for the year will be to increase the company’s capital to take advantage of the oil and gas reinsurance opportunities and further create a more robust, resilient and profitable company; as well as expand our operations on the African continent and other international markets,” Mobilla assured shareholders.
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