Regency Insurance Company Limited says it foresees the ongoing financial year to be a difficult one for the insurance industry following the various challenges facing the local economy.
The company said growth of the insurance industry could slow in the long run and that would impact its gross premiums.
This is because of such factors as inflation, which is at a two-year high of 15.3 per cent, the cedi consistently losing value against the US Dollar, government borrowing at 25 per cent and a budget deficit of 10.1 per cent for 2013 but now projected to end 2014 at 8.8 per cent.
That notwithstanding, the` company's Board Chairman, Mr Musa Badimsugru Adam, said at its annual general meeting, strategic initiatives had been put in place to mitigate the overall impact of the current challenges on the business.
Regency Alliance made a net profit of GH¢ 784,779 last year after it rose by 35.6 per cent over the 2012 figure.
That was as a result of a 36.2 per cent growth in the company's gross premiums, which rose from the 2012 close of GH¢₵6.32 million to GH¢₵8.38million last year.
The increment was on the back of strong growth in net premium, which saw a 56.1 per cent growth over the 12-month period. Consequently, the company will pay a dividend of one pesewa per share, translating into GH¢₵240, 000 for the year under review.
Although the company is confident of maintaining and even exceeding that growth trend, the Board Chairman said internal operations would have been higher if such challenges were minimal.
He, however, lauded the 'no premium no cover' introduced by the industry regulator, the National Insurance Commission (NIC), in response to the debt challenge facing the industry.
He further called for it to be sustained for the benefit of the industry and also urged the insurance companies to abide by it.
Best Worker Award
Meanwhile, the company has presented a cash award to Madam Ophelia Mitchell, one of its staff, for being the first business executive to exceed her targets this year.
The initiative was the first of its kind by Regency Alliance and will be carried through in subsequent years as a form of motivation for the staff to work harder.