Ghana Re sets eyes on bigger profits

THE Ghana Reinsurance Company Limited (Ghana Re) has intensified efforts to diversify its portfolio as part of moves to increase profitability. 

In that light, officials have opened contact offices in Cameroon and Kenya meant to harness business opportunities across the African continent.

Similarly, a process initiated in 2011 to increase the company’s capital base to ensure leverage is expected to be completed by the end of 2012.

The Chairman of the company’s Board of Directors, Mr Lionel Molbila, disclosed this at a ceremony during which officials declared a GH¢1 million dividend to the government.

Although Ghana Re’s gross premium income increased to about GH¢45.91 million in 2011 from GH¢45.54 million in 2010, its net premium decreased from 93 per cent in 2010 to 90 per cent in 2011.

That, Mr Molbila said, was as a result of an increase in provision for claims arising from the October 2011 devastating floods in Accra.

He also attributed the dip to the removal of the compulsory cession which the company enjoyed.
“Following the dip, the company’s capital base has been strengthened with the sum of GH¢18,145,912 to scale up profitability ventures,” he said, adding that in spite of the challenges that impeded growth in the previous year, the domestication of life business contributed significantly to the gross increase recorded.

Mr Molbila, who used the ceremony to announce Ghana Re’s 40th anniversary slated later in the year, was optimistic that the strong outlook for 2012, coupled with a strong capital base, would ensure its profitability in the coming years.

The Director of Public Investments at the Ministry of Finance, Ms Magdalene Apenteng, who received the cheque on behalf of the government, challenged Ghana Re  to endeavour to diversify its approach to the oil and gas sector to aide its recapitalisation and profitability ventures.

She said owing to the intense competition in the insurance sector, there was the need for the managers of Ghana Re to devise strategic means to increase its output in the coming years.

SOURCE: Della Russel Ocloo, Daily Graphic, Thur July 19, 2012