SIC COMPANY LIMITED IS TO ESTABLISH SUBSIDIARY COMPANIES IN WEST AFRICA (Business Page)

May 20, 2010
Story: Mary Mensah
The SIC Insurance Company Limited is to establish subsidiary companies in the West African Sub Region as part of the company’s strategy of penetrating the international market.
The set-ups will be done in partnership with indigenous companies and resources in those countries in the sub region to achieve maximum impact.
The Chairman of the board of Director Mr Max Cobbina who announced this at the Annual General Meeting of the Company in Accra today said the initial focus will be on Sierra Leone and Liberia.
He said the level of competition in the insurance industry continues to be very keen with the number of registered Non-Life insurance companies standing at 23 and the industry also continues to register the entry of new insurance companies and its expected to make the playing field even more competitive.
He said the company’s operational performance for 2009 slacked as compared to 2008 adding that it mobilised an amount of GH¢56,88 million as gross earned premium income indicating a negative growth of 1.98 per cent over the previous year’s gross earned premium income of GH58. 03 million.
Mr Cobbina said the decline is due to the company’s compliance with the international Financial Reporting Standards (IFRS) reporting requirements adding that on a gross premium written basis the company recorded GH¢62.19 million in 2009 as against GH¢56.26 million in 2008, a growth of about 10.5 per cent and the deferred premium income will be released in the year 2010.
He said the company’s profit before tax for the year was GH¢7.68 million as compared to year 2008 figure of Gh¢11.24 million and this represents a drop in the profit before tax of 31.6 per cent.
He indicated that despite the reduced profits the board of directors has proposed a total dividend payment of GH¢3,478,567 the same amount as was paid last year.
The Board Chairman said this translates to approximately 58.11 per cent of net profit after tax made in year 2009 and this works out to Gh¢0,0177 per share the same amount declared and paid in 2008 to valued shareholders.
Mr Cobbina asserted that the board has approve realignment of the operational processes and structure of the company into a bouquet type one-stop shop where the customer will be the utmost focus in the service delivery process.
He said in a bid to bring its services and products to the doorstep of the insuring public the board has agreed to management s proposal to open new offices in Obuasi, Suame and the DVLA office in Kumasi adding that the opening of the Adenta office will be completed this year.
On his part, the Managing Director of the company, Mr Benjamin Acolatse said the year 2009 was a challenging one for many reasons but with the stable economic environment prevailing now it is envisage that the company will push forward more strongly its focus on improved profitability that would ensure improved dividends for shareholders.
He said the primary objective of the company is to provide excellent customer service to its clients and has linked branches and area offices to the Wide Area Network (WAN) and this implies that clients can do business with the company from all its officers no mater where they originally took a policy from.
Mr Acolatse said the company has positioned itself quite well to take advantage of the opportunities that are emerging as a result of the oil and gas find offshore Ghana waters.
He announced that the company has been appointed to be the manger of the oil and Gas Consortium /Pool of insurers that is currently involved in the oil and gas insurance transactions.
The Managing Director said the company has been rated as AA by the Global Credit Rating Company of South Africa and this means the company has a very high claims paying ability, its protection factors are strong and risk exposure is modest.
He said by this rating SIC becomes the highest independently rated insurance company in the country.