The Ghana Reinsurance Company (GRC) is to increase its capital fund from its current level of GH¢115 million to GH¢ 200 million.
The move, according to the GRC Board Chairman, Mr Lionel Mobila, would enable the company to take advantage of the new opportunities such as the local oil and gas industry.
Speaking at the 10th annual general meeting (AGM) in Accra, Mr Mobila said with the discovery of oil and gas in the country, there was the need for the GRC to expand and increase its funds to attract other business opportunities.
The AGM brought together the board and management of the GRC and representatives of the government.
At the AGM, the company presented a cheque of GH¢3 million as dividend to the government. It represented an increase of 200 per cent over 2011.
“We assure our shareholders that we shall ensure that the company is continually managed in line with international best practices, ensuring the well-being of all our stakeholders with a strong commitment to good corporate governance practices and we shall continue to produce strong financial results”, Mr Mobila said.
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He said despite the challenges the GRC faced during 2012, the company registered a rapid growth and attainment of its targets and goals.
“I am pleased to announce that three years after the withdrawal of the statutory 20 per cent legal cession which constituted 60 per cent of the company’s premium income, we have been able to achieve a 38 per cent growth in premium income over that of 2011,” he said.
Touching on the financial performance of the company in 2012, Mr Mobila said the GRC worked hard to ensure that gross premium written grew by 38 per cent from GH¢45.9 million to GH¢ 63 million, adding that profit after tax increased by 169 per cent from GH¢5.28 million in 2011 to GH¢ 14.34 million in 2012.
“The shareholders fund at the close of year 2012 stood at GH¢116.55 million compared to GH¢103.57 million in 2011, an increase of 12.53 per cent. The increase is financed substantially from increase in retained profit,” he said.
According to Mr Mobila, GRC contributed GH¢51,000 to institutions as part of the company’s corporate social responsibility.
Story: Dominic Awiah