Ghana Reinsurance Company Limited continues to grow bigger and better, as it paid GH¢10 million as dividend to its shareholder – the government of Ghana – during its 18th Annual General Meeting held in Accra last week Wednesday.
George Otoo, Chairman of the Board of Directors, informed its shareholders that for future growth the company has developed a three-year strategic plan anchored on four strong pillars to guide its operations from 2021 – 2023.
According to him, these pillars include enhancement of Ghana Re’s business operating system and development of its human capital for operational excellence. He also stated that the company will change its name from Ghana Reinsurance Company to Ghana Re Plc when approval has been given.
2020 Business Performance
The reinsurer’s gross total premium income of GH¢311.56million in 2020 compared to GH¢253.37million in 2019 represented a growth rate of 23%. General business grossed GH¢286.39million, which represents 92% of the total gross premium income.
Fire insurance dominated the line of business by contributing 47.7% of the general business premium income, while accident and motor businesses contributed 22.2% and 9.2% respectively.
Life business gross premium increased from GH¢22.52million in 2019 to GH¢25.17million in 2020, representing 8% of the total gross premium.
Management expenses grew from GH¢41.43million in 2019 to GH¢56.17million in the year under review, an increase of 35.36% – while the management expense ratio increased from 19.7% in 2019 to 21.9% in 2020, largely due to impairment provision.
Profit before tax recorded for the year 2020 was GH¢55.79million compared to GH¢40.80million in 2019, while profit after tax was GH¢41.94 million as against GH¢30.16million in 2019. Return on equity increased from 11.7% in 2019 to 14.8% in 2020.
Shareholder’s equity also grew, from GH¢365.18million in 2019 to GH¢387.76million in 2020, while the total asset to total liabilities ratio was 2.3 in 2020 compared to 2.6 in 2019.
George Otoo declared that the company spent a total of GH¢220,000 on corporate social responsibility activities during the year under review, and this amount went to support activities of selected educational and health institutions.