Ghana Re posts 424% rise in profit
Ghana Reinsurance PLC has recorded a profit before tax of GH¢321.94 million in 2023, up from the GH¢61.43 million recorded in 2022.
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This represents a 42.4 per cent growth and was mainly influenced by the movement in insurance contract liability balances arising from the adoption of the international reporting standard (IFRS 17), reduction in management expenses and gains on revaluation of investment properties.
As a result, the reinsurance firm paid an amount of GH¢25 million as dividend to the government through the State Interest and Governance Authority (SIGA) for the 2023 financial year.
It brings to GH¢79 million, the total dividend paid to its shareholders since 2017.
Addressing the 21st annual general meeting (AGM) of the reinsurance firm in Accra last Tuesday, its Board Chairman, George Otoo, said the impressive performance was influenced by the firm's three-year strategic plan (2012—2023).
“The year 2023 marked the final year of the company’s three-year strategic plan (2021-2023), with the company making remarkable achievements in its set objectives.
“Notably, the achievement of a gross written premium of GH¢712.81 million compared to the target of GH¢531.34 million and the opening of a contact office in Morocco,” he said.
Mr Otoo said that the firm has thereafter ushered in a new three-year strategic plan from 2024-2026, anchored on three main pillars.
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“Return on equity (ROE) also increased significantly to 47 per cent in 2023 from the set target of 20 per cent. At the end of each financial year, there will be a review of the target set for ROE to ensure it does not fall below actual performance during the period,” he added.
Insurance revenue
The board chairman stated that the company’s composite (life and general business) insurance revenue under IFRS 17 for 2023 was GH¢684.39 million, representing a growth of 25 per cent over GH¢545 million recorded in 2022 (restated).
He said general business contributed about 94 per cent of the company’s insurance revenue, representing GH¢642 million in absolute terms.
He said the life portfolio contributed the remaining six per cent of the total insurance revenue, which represents GH¢42 million.
“The largest contributor to this key achievement is the insurance revenue from fire business, which contributed about 54 per cent to the insurance revenue generated from general business and 51 per cent to the total insurance revenue reported for the Group,” he said.
He said the total insurance service expense recorded for 2023 was GH¢509.87 million compared to GH¢481.48 million in 2022 (restated), representing a six per cent increase over 2022.
The incurred claims portion of the insurance expense, which comprises gross claims and changes that relate to past service adjustment to liability for incurred claim (LIC), was GH¢486 million in 2023, compared to GH¢471 million recorded in 2022, representing an increase of three per cent.
The company's management expense for the period reduced from the 2022 figure of GH¢85.65 million to GH¢72.54 million in 2023, representing a 15 per cent reduction.
The board chairman added that the board would work with management to ensure that the company outperforms most of the targets set in the new three-year strategic plan.
Ghana Re commended
The Acting General Manager in charge of operations at SIGA, Stephen Asiedu, who represented his Director-General, commended Ghana Re for its impressive performance in
the 2023 financial.
“From the look of things, the 2023 dividend payment is the highest so far and please consider it as accepted by the shareholder,” he said.
He added that SIGA was hopeful that the new three-year strategic plan would further spur growth for the company and the country in general.
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