OIL FIND POSES CHALLENGES FOR INSURANCE AGENCES (Business page)

26/11/2008
Story: Mary Mensah
The Ghana Reinsurance Company Limited will increase its capital base and train staff in oil, gas and energy to take advantage of the emerging oil industry.
“We will endeavour to enhance the technical and professional competence of out team through various educational and training programmes so as to provide the best and most reliable services to our clients”.
Speaking at the Annual General Meeting of the company in Accra today, the Chairperson of the Board of Directors, Mrs Christine Dowuona-Hammond admitted that the licensing of insurance companies posed a great challenge to Ghana Re and that it will step up its marketing activities to widened and increased its premium base.
She said already the company had seen slight increases in its management expenses from GH¢ 6.36 million in 2006 to Gh¢ 6.51 million in 2007, an increase of 2.49 per cent attributable to increased marketing activities.
Mrs Dowuona-Hammond indicated that consequently the company managed to grow its Gross premium Income by 20 percent from GH¢ 29.27 million in 2006 to GH¢ 35.10 million last year.
She said however that the product mix remained relatively the same with non-marine as well as marine and aviation contributing 87.88 per cent and 12.34 percent in 2007 respectively compared to the previous year’s ratio of 88.67 and 11.33 per cent.
She said the company posted a net profit of Gh¢ 10.69 million, an increase of 86.76 percent over and above the Gh¢ 5.72 million recorded in the preceding year adding that included in the profit was GH¢1.98 million and GH¢ 1.98 million accounted for respectively by exchange gain and miscellaneous income out of which GH¢ 1.98 represents from sale of equities.
According to her the company’s balance sheet expanded by 33.12 per cent with an improved capital adequacy and financial security ratios and underwriting exposure measured by net premium to equity improved from 91.70 per cent to 85.89 percent in 2007.
The Chairperson indicated that Ghana Re’s investment portfolio continues to grow and a 30 per cent increase has been recorded in the year under review with a realised return of 8 percent and said the company will continue to restructure its investment portfolio to ensure an optimum mix designed not only to maximise returns on investment but in the main also to ensure that the company always has sufficient funds to meet its obligations as a global reinsurer of choice.
Mrs Dowuana-Hammond stated that Ghana Re in order to positively position itself in anticipation of the eventual withdrawal of the legal cession and also to be able to underwrite a meaningful share of the large risks in the oil and gas industry, urgently needed to enhance its capital base.
“In view of the above the Board of Directors is confident that the proposed resolution to increase the slated capital by the transfer of Gh¢ 4.40 million from income surplus account will be approved by shareholders”, she said.
She said on the recommendation of the management and the board an annual dividend of GH¢1.2 million has been approved for shareholders and this represents 20 per cent over the GH¢1.0 million paid in 2006.
She assured that the company will be resolute in the coming year to market actively and exhibit a strong commitment to its clients as this is the surest way to income growth and sustainability.