The Deputy Minister of Finance, Dr. John Kumah has charged the newly reconstituted Board of the Reinsurance Company Limited (Ghana Re), to work collaboratively with the National Insurance Commission (NIC), to implement prudent measures that will enhance Ghana’s attractiveness as an insurance hub for the sub-region.
It is tangent on the insurance industry to contribute strategically towards “strengthening the financial sector, deepening financial market, improving corporate governance practices and increase the competitiveness of the insurance industry”, Dr Kumah disclosed.
The board, which is chaired by Mr George Otoo, a Chartered Insurance Practitioner, has other members such as, Mr George Y. Mensah, the Managing Director of Ghana Re, Mrs Jennifer Owusu, a Lawyer.
Other members include, Mr Franklin Hayford, Executive Director of Financial Services Business, Mrs Lynda Odro, a chartered Insurance Practitioner, Mrs Stella Williams, Director for Monitoring and Evaluation at the Ministry of Finance and Dr Francis Sapara-Grant, an Economist.
The Deputy Minister, urged the Governing Board to assist the management of Ghana Re to perform its functions creditably and live up to its mandate of providing world-class reinsurance services to local and international companies.
“We are confident of the quality of your membership, the varying degree of expertise leaves us in no doubt that the Board will live up to expectation.”
Dr John Kumah
While speaking at the inauguration ceremony of the seven-member reconstituted Board of Ghana Re, the Deputy Minister charged the new board to embark on an expansionary drive into targeted markets in Africa to grow its premium income.
Dr Kumah also admonished members of the board to “enhance operational excellence and shareholder value by increasing Return on Equity from 14.8 per cent to 20 per cent by 2024”.
Ghana Re’s performance
With regards to the overall performance of Ghana Re, the Board Chairman, Mr George Otoo disclosed that, in the last four years (2017 to 2020), Ghana Re’s premium income steadily grew from GH¢193 million to GH¢312 million.
“But most importantly, we will continue to provide capacity for local insurance companies to retain more premiums in the Country for development.”
Mr George Otoo
The Deputy Minister also encouraged that Funds generated by collecting premiums could be invested in government securities and stock for the economic development of the country.
Mr. Otoo also disclosed that Re’s gross profit also grew from GH¢49 million in 2017 to GH¢456 million as at December 2020 (even in the midst of the COVID-19 pandemic).
The Board Chairman further stated that the Company currently has a total market share of about 45% and is working very hard to gradually increase it to about 55% in the next three years.
Also, on economic development, the Dr. Kumah disclosed that it had been proven globally that there exists a strong correlation between the level of economic development of a country and how developed the Insurance sector of the country is.
“Whilst correlation does not necessarily imply causation, the benefits of a well-developed Insurance market to a country are numerous.”
Dr John Kumah
Furthermore, Dr John Kumah hinted that Parliament had passed into law, the new Insurance Act, 2021 (Act 1061), which seeks to strengthen the regulatory framework of insurance businesses in Ghana, in compliance with the new Insurance Core Principles introduced by the International Association Insurance Supervisors.
Ghana Re’s regional dominance
Dr. Kumah disclosed that, with Ghana Re operating as an international reinsurer, competing with regional reinsurers who operate under charters such as Africa Re, Zep Re and WAICA Re, Ghana Re has continued to make significant strides in the industry.
In relation to expansion (growth), Mr Otoo said Ghana Re has established a regional office in Cameroon to cater for the Central African zone and a full subsidiary in Kenya to serve the East African market.
“Work is currently in progress to open a third office in Casablanca, Morocco to serve the North African regional bloc.”
Furthermore, Mr Otoo used the opportunity to express gratitude to President Nana Akufo-Addo for demonstrating his confidence in them to serve another term as Directors of Ghana Re.
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