Business News of 2014-06-16

GIBA President calls for mergers

Nathan Adu, President, Ghana Insurance Brokers Association (GIBA) has proposed the issue of mergers and acquisitions to its members.

The president made this proposal at the first Annual Conference and exhibition of GIBA, held in Dodowa under the theme “Promoting Local Capacity in the Insurance Industry”.

GIBA President, fuming, told members that all over the world we hear about how giant corporations are merging to have competitive advantage. “Isn’t it about time we start talking to ourselves about mergers and acquisitions before some of us are swallowed by the dictates of the market?” Adu asked.

He said it is about time we also looked in that direction and talked about mergers to leverage strategic alliance, and overtake the competition to save cost. The President said mergers also mean expanding our businesses and positioning to enter new markets or country.

According to him, the number of brokers on the market by his last count had shot up to 60 firms from 53 in 2012, and is likely to increase further by the close of 2014. More significantly, financial reports for 2012 indicate that earnings were just GH?27.8million.

He said it is disappointing that of this amount only a few top brokers generated GH?19.6million representing 68.4%.