The State Insurance Company (SIC) PLC has announced a stellar financial performance for the 2024 fiscal year, posting a profit after tax increase of 316.9% despite a challenging macroeconomic environment in Ghana and globally.
The announcement came during the company’s 18th Annual General Meeting (AGM), chaired by Mr. Bernard Ahiafor, MP, who praised the company’s strong execution and prudent management.
The 2024 fiscal year presented a challenging backdrop for businesses in Ghana. Inflation rose to 23% in November 2024, while the Ghana cedi depreciated by a staggering 28% against the US dollar. Investor confidence remained cautious due to ongoing concerns around the Domestic Debt Exchange Programme (DDEP) and weak liquidity in the market.
Despite these hurdles, SIC Insurance demonstrated resilience, posting key financial gains across multiple indicators. The company recorded insurance revenue of GHS 559.5 million, representing a 49.9% increase from 2023. Profit before tax rose to GHS 83.2 million, while profit after tax surged to GHS 53.4 million, signaling a transformative leap in performance. Shareholders’ funds also grew significantly, reaching GHS 670.4 million, up 40.1% from the previous year.
Earnings per share increased to GHS 0.2730, compared to GHS 0.0655 in 2023, while the return on shareholders’ funds rose from 2.6% to 7.9%, reflecting the company’s commitment to delivering sustained value for its investors.
Strategic Discipline and Prudent Management
Chairman Bernard Ahiafor attributed SIC Insurance’s impressive performance to disciplined strategic planning and effective risk management. “Our results reflect a combination of prudent underwriting, strong risk management practices, and disciplined cost control measures,” he stated at the AGM. He also commended management and staff for their unwavering commitment to achieving operational excellence and creating long-term value for stakeholders.
A key milestone for SIC Insurance in 2024 was the full implementation of IFRS 17, the global accounting standard for insurance contracts. SIC Insurance is among the few industry players fully compliant with the standard, enhancing transparency and comparability with international peers. This compliance underscores the company’s focus on global best practices and investor confidence.
The global economic landscape in 2024 remained volatile, influenced by lingering effects of the COVID-19 pandemic, geopolitical tensions, and stringent monetary policies. While inflation eased in some advanced economies, developing markets—particularly in Africa—faced significant debt burdens, weak capital inflows, and volatile currencies.
Within Ghana, the insurance industry nevertheless showed signs of growth. The general insurance sub-sector experienced an uptick in gross written premiums, particularly in motor, fire, and engineering lines. Industry-wide claims payouts reached approximately GHS 1.8 billion, reinforcing the insurance sector’s commitment to protecting policyholders and mitigating risk
SIC Insurance’s focus on Enterprise Risk Management (ERM) was central to its resilience. The company strengthened its ERM framework to address emerging threats such as cyber risks, credit exposures, and macroeconomic instability. These measures positioned SIC Insurance to navigate uncertainties while remaining financially robust.
Shareholder Returns and Dividend Declaratio
In recognition of its exceptional performance, the Board of Directors proposed a dividend of GHS 0.0511 per share, subject to shareholder approval. This move signals SIC Insurance’s commitment to rewarding its investors while maintaining a strong capital base for future growth.
The Chairman noted, “SIC Insurance PLC enters 2025 with a solid capital foundation, a clear growth strategy, and a high-performing workforce. We are poised to deliver lasting value to shareholders, customers, and the wider Ghanaian community.”
In the eintervening time, SIC Insurance remains cautiously optimistic. With insurance penetration in Ghana still around 1%, the company sees significant opportunities for expansion. Digital transformation, inclusive insurance initiatives, and ongoing government reforms are expected to drive future growth, making insurance products more accessible to previously underserved markets.
The Chairman emphasized the importance of innovation and technological adoption, highlighting SIC Insurance’s readiness to leverage digital tools and platforms to enhance efficiency and customer experience. These initiatives are expected to support long-term profitability while reinforcing the company’s position as a market leader in Ghana.
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