Ghana Reinsurance Pays Gh¢5 Million Dividend to Govt

Ghana Reinsurance (Ghana Re) PLC has presented a cheque for 5 million Ghana cedis to the government as dividend for the 2022 financial year. The figure represents a sharp decrease from the GH? 12 million paid in 2021.

According to the Board Chairman of Ghana Re, Mr George Otoo, the decline in profit for the year was attributed to the high claim ratio and impairment loss on the company's financial assets from the Domestic Debt Exchange Programme.

"The Group's profit-before- tax in 2022 was GH? 67.55 million compared with GH? 66.74 million in 2021, an increase of one per cent. Profit-after-tax was, however, GH? 49.50 million as against GH? 51.73 million recorded in 2021, representing a decline of five per cent," he explained at the 20th annual general meeting held in Accra on Friday.

"An amount of GH? 248.3 million was incurred as net claims for 2022, representing 77 percent increase over the GH? 140.2 million recorded in 2021. Claims ratio deteriorated from 43 per cent in 2021 to 58 per cent in 2022," he stated.

The increase, he said, was attributed to the Oil Marketing Companies' bond claims and the depreciation of the cedi in the second half of 2022.

Management expenses, he said, grew from GH? 66.5 million in 2021 to GH? 91.25 million in 2022, representing an increase of 37 per cent, while expenses ratio increased from 20 per cent in 2021 to 21 per cent in 2022, largely due to the high cost of inflation recorded for the year.

He, however, assured stakeholders that the company was on the right path with their three-year strategic plan which would be implemented to turn the fortunes of the company for the better.

"I want to assure you that we will be able to meet most of the targets set in the strategic plan, notwithstanding the challenges of the economic environment which was not envisaged when the strategic plan was drawn," he said.

Receiving the dividend on behalf of the government, Ag. Head of Public Entities and Assets Unit, Public Investment and Assets Division of the Ministry of Finance and Economic Planning (MoFEP), Mr Kwame Okyere-Mensuo, commended Ghana Re for their consistency in paying dividend to the government annually