By Moses Mozart Dzawu
SIC Insurance Co., Ghana’s biggest insurer, shelved plans to open units in Sierra Leone and Liberia as the nations battle to contain the world’s worst outbreak of Ebola.
The Accra-based company, which was studying the financial viability of expanding, aimed to open general insurance businesses in the West African countries, Managing Director Doris Awo Nkani said by phone yesterday. They would have offered motor, accident, marine, aviation and fire insurance among other products, she said.
"Because of the Ebola situation, the board this year decided to put the plans on hold," Nkani said. "I don’t think the plans will be revived anytime soon."
SIC joins companies curbing investment in Liberia, Sierra Leone and Guinea, the countries hardest hit by the disease that’s killed about 5,000 people since December. Airlines have halted flights and governments have slashed economic growth forecasts.
Dangote Cement Plc, Nigeria’s biggest company and Africa’s largest producer of the building material, delayed a planned expansion into Sierra Leone, Chief Executive Officer Devakumar Edwin said Nov. 4. Heineken NV’s unit in Freetown, Sierra Leone’s capital, sent staff home as it halted growth plans.
SIC’s net income rose 11 percent to 2.5 million cedis ($769,000) in the six months through June 30. Net premiums for the company that’s 40 percent owned by the Ghanaian government advanced to 48.1 million cedis from 46.2 million cedis a year ago.
The company’s shares were unchanged at 40 pesewas by 12:56 p.m. in Accra. They’ve advanced 2.6 percent in 2014, compared with the Ghana Stock Exchange Composite Index (GGSECI)’s 4 percent increase.
To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net
To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Emily Bowers, Antony Sguazzin
Source: Bloomberg
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