Ghana Reinsurance (Ghana Re) PLC recorded GH¢12 million dividends for the 2021 financial year and subsequently presented all to its sole shareholder-government.
Presenting the cheque to the government which was represented by the Director General of the State Interests and Governance Authority (SIGA) during the annual general meeting in Accra, Board Chairman Ghana Re PLC, Mr. George Otoo, noted that the company’s financial performance improved massively in 2021 as against 2020 and it is committed to sustaining its upward growth in 2022 and beyond.
Mr. Otoo disclosed that profit before tax recorded for the year 2021 was GH¢66.74 million compared with GH¢55.79 million in 2020, while profit after tax was GH¢51.73 million as against GH¢41.94 million recorded in 2020. He added that shareholder’s equity also grew by 12 percent from GH¢387.76 million in 2020 to GH¢435.75 million in 2021.
The figure represents a 20 percent increase over the GH¢10 million paid in 2020 following an impressive performance of the company within the year under review.
“The company’s group composite (Life and General Business) gross premium income for 2021 was GH¢385.90 million representing a growth rate of 24 percent over GH¢311.56 million recorded in 2020. General Business premium income for the year was GH¢359.90 and that of Life stood at GH¢26.58 million” Mr. George Otoo said.
The Board Chairman of Ghana Re PLC stated that management expenses for the period grew from the 2020 figure of GH¢56.19 million to GH¢66.47 million in 2021, an increase of 18 percent. He asserted that expense ratio decreased from 22 percent in 2020 to 20 percent in 2021, largely due to prudent cost measures instituted by management.
“The company’s 2021 improved financial performance is testament to the board playing its supervisory role in the corporate governance structure of the company.”
With the establishment of a regional office in Morocco last year, Mr. Otoo said the company has taken a giant step in their drive to expand into the North African market which would improve upon its fortunes in coming years.
The Director General at SIGA, Ambassador Edward Boateng, commended the company for running the business efficiently.
“At a point when we are saddened by the mismanagement within the state-owned companies, Ghana Re PLC has ensured efficiency and accountability and must be commended”.
Mr. Boateng charged other state-owned companies to replicate the performance of Ghana Re PLC to ensure the growth of the economy and the country at large.
“Ghana Re PLC should become an example of how state entities are managed in this country as they have shown great leadership and set the standards for business management.
“State companies must be productive to ensure government moves forward as they are currently contributing very less to the economy as compared to the private companies. We cannot continue managing our state institutions in a way that they remain unaccountable and inefficient. They should lead the charge for economic growth in the country.”
The Director General at SIGA urged young entrepreneurs to take lessons from Ghana Re’s success story in order to become successful business owners. According to him, that would go a long way to ensure wealth creation and decrease the over reliance on government for jobs.