Business News of 2014-06-22

Ghana Re pays GH¢3m as dividend to gov’t

Ghana Reinsurance Company Limited had shown an impressive performance by the close of the 2013 financial year.
As financial indicators pointed positive, the company paid to its major shareholder -- government -- a total of GH¢10.9million. A breakdown indicated that GH¢3million was paid as dividend and GH¢709million as corporate taxes.
Lionel Molbila, Chairman, Ghana Re disclosed that the company chalked up a 50% increase in profit after tax of GH¢30million from GH¢20million in 2012. Composite gross premium grew by 10.27 percent from GH¢62.8million to GH¢74.8million in the year under review.
Significantly, 67 percent of the company’s premium was generated locally and 33 percent from markets outside Ghana. The chairman announced that Ghana Re is focused on the vision of ensuring a 60/40 mix by 2015.
Indeed, commission expense ratio showed an improvement -- reducing to 27.59 percent in the year under review from 31.04 percent in 2012. Claims on the other hand increased by 210.44 percent, with 64 percent of the claims from fire related risks. The movement in outstanding claims, which increased by GH¢10.2million in 2013 compared to a reduction of GH¢6.33million in 2012, impacted on the variance recorded.
Life business income grew by 36.90 percent to GH¢6.27million in 2013 from GH¢4.58million in 2012. Group life policies formed 70 percent of the life premium and accounted for the growth.
However, a retrocession programme signed with Munich Re during the year will help reduce adverse claims for the year, and this accounted for the increase in retro premium to GH¢1.33million in 2013 from GH¢0.20million.
Investment income grew to GH¢2.09million in 2013from GH¢0.94million, mainly as a result of improved yield and enhanced net cash inflows. An amount of GH¢4.25million was added to the life fund provision in the year.