Mr Stephen Oduro, Managing Director of SIC Insurance Company Limited on Wednesday said the insurance industry in Ghana continued to grapple with challenges such as penetration and fierce competition among players.
He said in spite of the volatility of the insurance market, SIC Insurance mobilized an amount of GHC161,929,753.00 as gross premium income in 2017, showing a marginal growth of 1.13 per cent over previous year’s premium of GHC160,111,229.
He said the net premium after Reinsurance increased by 4.3 per cent from GHC94,706,531.00 in 2016 to GHC98,815,050.00 in 2017. Mr Oduro stated at the Eleventh Annual General Meeting of the SIC Insurance in Accra, which received and considered the Accounts of the Company for the year ended December 31st 2017, together with the Reports of the Directors and the Auditors.
The SIC Insurance AGM, also declared dividend for the year ended; fixed the remuneration of the Auditors; and re-elected retiring Directors and approved Directors’ remuneration. On claims payment, Mr Oduro noted that, even though there were no exceptional claims, claims incurred grew by about 123 per cent from GHC17,247,719.00 in 2016 to GHC38,491,870.00 in 2017, an indication of the company’s unquestionable claims paying abilities.
He said management expenses increased by 19.12 per cent from GHC62,176,479.00 in 2016 to GHC74,000,788.00 in 2017, but the Company’s Underwriting margins reduced from GHC11,266,836.00 in 2016 to GHC7,266,598.00 in 2017.
He assured shareholders that Board and Management would continue to work hard towards positive figures in future. The SIC Insurance MD said investment income showed a decline of about 20.21 per cent; from GHC14,584,564.00 in 2016 to GHC11,637,483.00 in 2017.
He attributed the decline to the falling interest rate regime in the economy, and that, Management has put in measures to manage company investments well to realize enhanced yields. Mr Oduro said profit before tax was GHC17,398,901.00 against GHC17,161,252.00 in 2016. “We recorded GHC3,385,500.00 as impairment on investment in 2017 with no exceptional claim as against the GHC10,601,830.00 recorded 2016.
Tax expense (corporate tax and National Fiscal Stabilization Levy) increased from GHC1,144,438.00 in 2016 to GHC2,655,712.00 in 2017 and Profit After Tax (PAT) for the company grew by about 109 per cent from GHC5,414,984.00 in 2016 to GHC11,357,689.00 in 2017.
He said Motor portfolio declined by 2.7 per cent from GHC63.56 million in 2016 to GHC61.88 million in 2017; the portfolio continues to be the highest contributor to the Gross Premium Income; contributing 38.22 per cent in 2017 and 42.1 per cent […]