SIC Insurance profit Surges 57% to GH¢84million in 2025;  GH¢0.1022 per share dividend recommended

SIC Insurance PLC closed the 2025 financial year with a leap in profitability, posting a group profit after tax of GH¢84.05 million, representing a 57.3 per cent increase from the GH¢53.41 million recorded in the prior year, according to the company's audited financial statements.

The strong performance was driven by a combination of higher insurance revenue, increased investment income, and a major one-off gain from the regularisation of encroached lands at Greenhill. Group profit before tax climbed to GH¢117.74 million, up from GH¢83.21 million in 2024.

Insurance revenue for the year rose to GH¢598.19 million from GH¢559.48 million in 2024, with the fire class remaining the largest contributor at GH¢209.54 million, followed by motor insurance at GH¢178.84 million. Bonds contributed GH¢113.26 million, accident GH¢54.44 million, marine and aviation GH¢31.56 million, and engineering GH¢10.56 million.

Investment income jumped sharply to GH¢46.77 million from GH¢36.28 million in 2024, reflecting higher yields on fixed deposits, treasury bills, and a notable GH¢17.07 million in interest income from bonds.

The company also booked a significant modification gain of GH¢20.70 million, primarily related to a reduction in the impairment provision on investments at amortised cost, which fell from GH¢45.67 million in 2024 to GH¢25.58 million in 2025.

Total assets for the group stood at GH¢1.53 billion at year-end, while total equity attributable to equity holders of the parent reached GH¢786.28 million.

Qualified audit opinion over subsidiary

Despite the strong headline numbers, auditors Baker Tilly Andah + Andah issued a qualified opinion on the group's financial statements, citing material misstatements in the accounts of the subsidiary, SIC Financial Services Limited.

The auditors identified that the subsidiary was involved in multiple legal proceedings, some of which had resulted in unfavourable outcomes. In the case of Tannik Ghana, the company had recognised a payable of GH¢21 million, but legal confirmation received by the auditors indicated the outstanding obligation amounted to USD 8.7 million, approximately GH¢95.7 million, representing principal plus accrued interest arising from a court judgment obtained on June 15, 2017.

Additionally, in a legal case brought by Bank of Africa, judgment was delivered against the subsidiary on March 20, 2024. The court ruled that the company is liable to pay an amount equivalent to USD 1.57 million, approximately GH¢18.8 million, plus interest of GH¢49.2 million. Management had not recognised any provision for this obligation nor adequately disclosed the matter.

The auditors concluded that the omission of these provisions resulted in a material understatement of liabilities and a corresponding overstatement of equity by GH¢142.7 million.

Dividend and capital strength

The board of directors recommended a dividend payment of GH¢0.1022 per share, bringing the total dividend for 2025 to GH¢20 million, subject to approval from the National Insurance Commission.

The company's capital adequacy ratio stood at 222.68 per cent, well above the regulatory minimum of 150 per cent required by the Insurance Act, 2021 (Act 1061). The investment-to-total-assets ratio was 73 per cent, exceeding the regulatory requirement of 55 per cent.

Corporate governance and director compensation

The financial statements disclosed that a total of GH¢1.14 million was paid as emoluments to directors during the year, including fees and allowances for both executive and non-executive directors. One director, Dr Kingsley Agyemang, waived his fees and allowances effective 15th July 2024 until his resignation in June 2025.

The board saw significant changes during the year, with Dr Kingsley Agyemang appointed Managing Director on 24th January 2025 replacing Mr James Agyenim-Boateng. Several independent non-executive directors were appointed on 27th November 2025, including Dr Aaron Issa Anafure, Mr Ernest Tawiah Nunoo, Mr Saeed Obi Abdulae, Mr Kwabena Gyima Osei-Bonsu, and Mr Nicholas Oteng, while others resigned on the same date.

The company spent GH¢1.27 million on corporate social responsibility activities in 2025, covering education, community development, health, environment, sports, and festivals.

Investment property revaluation

The company recognised a revaluation loss of GH¢15.15 million on its investment properties during the year, driven by a decline in the fair value of leasehold and freehold properties. A total of GH¢52.35 million was transferred from owner-occupied property to investment property following a change in use.

SIC Insurance PLC remains one of Ghana's leading non-life insurers, underwriting motor, fire, accident, marine, aviation, bonds, and engineering risks. The company has a primary listing on the Ghana Stock Exchange.