The government has announced plans to list a portion of the Ghana Reinsurance PLC (Ghana Re) on the Ghana Stock Exchange (GSE) as part of efforts to strengthen the state-owned reinsurance firm’s capital base and attract private investment.
Consequently, a comprehensive study authorised by the Minister of Finance to assess the company’s financial position and performance profile is currently underway ahead of a Cabinet memo seeking approval for the listing.
The move is expected to help Ghana Re mobilise fresh capital, enhance market confidence, and create an opportunity for local and international investors to participate in one of the country’s most profitable insurance enterprises.
Consistent profitability
The Director-General of State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, in an interview with the Daily Graphic at Ghana Re’s 22nd Annual General Meeting (AGM) in Accra on October 7, commended Ghana Re for its consistent profitability and regular dividend payments since SIGA’s establishment.
He said Ghana Re remains one of the few state-owned enterprises that have not only made profits but have also paid dividends to the government each year.
He said the company serves as a shining example for other public entities to emulate.
Prof. Kpessa-Whyte stated that discussions were underway to list Ghana Re on the local stock market to enable it to raise additional capital, strengthen its operations, and attract new investors.
“The Minister of Finance has already authorised a comprehensive study of the company’s financial profile to determine its readiness for listing, with the assessment currently ongoing.
“Upon completion, a Cabinet memorandum will be submitted for approval, after which the technical processes required for listing will begin,” he said.
He added that SIGA, as the shareholder, together with the board and management of Ghana Re, was enthusiastic about the prospect, confident that the move would boost investor confidence and position the company for sustainable growth in the competitive reinsurance market.
The Managing Director of Ghana Re, Seth Kobla Aklasi, welcomed the government’s plan to list the company on the GSE, describing it as a timely step to strengthen the firm’s capital base.
He explained that the stock market has performed strongly this year, creating a favourable environment for Ghana Re to attract new investors and raise funds for expansion into untapped markets across Africa.
Mr Aklasi stated that growth in the reinsurance business depends largely on capital strength, and listing on the GSE would provide the financial flexibility needed to deepen operations and increase visibility among global partners.
He added that if the company’s sole shareholder, the government, decides to bring in additional investors, management would strategise to maximise value — a move that would make Ghana Re the first reinsurance company to be listed on the local bourse.
Financial performance
The Board Chairman of Ghana Re, Samuel Sarpong, said profit after tax declined by 63 per cent, from GH¢224.90 million in 2023 to GH¢84.22 million in 2024 mainly due to losses to Euro bonds, to higher claims and commissions, impairment charges, modification and increased management expenses.
He said, based on the assessment carried out by the board on the Group's financial performance for 2024, a dividend of GH¢13.0 million was paid to the sole shareholder, the government.
He said the Group's insurance revenue for 2024 was GH¢1.049 million, representing a growth of 53 per cent over GH¢684 million recorded in 2023.
He said Ghana Re was prioritising the stabilisation of the company’s profitability, growing its retained earnings, and expanding the capital base to help improve its rating, attract business and increase business profitability for improved dividend payments.