The gross premiums of state reinsurer, Ghana Reinsurance Company Limited (Ghana Re), rose by 20.27 per cent last year to GH¢125.55 million.
The increment in gross premiums, from the GH¢104.39 million recorded in 2014, was influenced by a corresponding growth in premium incomes from the company’s life and general businesses.
Its 2015 audited financial results showed that while premiums from life businesses grew by 32.25 per cent to GH¢11.17 million in 2015, that of general business rose by 19.21 per cent to GH¢114.38 million.
Notwithstanding the strong growth in premium income in the year, the company’s net profit fell by 33.39 per cent.
It dropped from GH¢43.03 million in 2014 to GH¢28.66 million last year.
The company’s Board Chairman, Nana Ansah Sasraku III, blamed the decline in net profits on the June 3 disaster, which drained the company of GH¢43 million in claims.
Insurance companies have so far paid over GH¢335.7 million in claims to victims of the flood and fire disaster, which claimed the lives of over 150 people mid last year.
But for the incident and its impact on Ghana, Nana Sasraku III said, the performance of Ghana Re would have been better.
Despite the decline in net tax profit, the company paid a dividend of GH¢3.368 million to its shareholder, the government of Ghana.
That brought Ghana Re’s total payment to the government in 2015 to GH¢21.03 million. It paid GH¢17.03 as corporate taxes for last year.
Capturing sub-regional market
Going forward, the board chairman said Ghana Re would continue to improve its performance through the injection of fresh capital.
He was confident that the company would take advantage of the local market utilisation directive and domesticate classes of businesses introduced by the industry regulator, the NIC, to grow its premium income on the local front.
“Additionally, customer loyalty will be enhanced through continuous technical capacity building for our customers,” he said.