Ghana Re Holds AGM, announces increased revenues

By Elliot WILLIAMS

Ghana Reinsurance PLC (Ghana Re) has held its Annual General Meeting for 2025, at which it announced impressive results for the 2024 financial year.

Following the announcement of the results, the Government of Ghana, which is the sole shareholder of the company, commended the recently installed Board of Directors – appointed effective June 3, 2025 – as well as the company’s management and staff for the remarkable financial performance.

The Chairman of the Board, Mr. Samuel Kwadwo Sarpong announced 53% growth in Ghana Re’s insurance revenue for 2024, which rose to GHc1,049 million, up from GHc684 million in the previous year.

Of the Group’s insurance premiums, about 96%, amounting to GHc1,006 million, was generated by General Business, representing about 24% growth over the figure for 2023. The other 4% of gross premiums came from the Life portfolio which contributed Ghc43 million. The largest contributor to insurance revenue, by class, was Fire Business which contributed about 46% of total premium income generated.

The Group added another GHc125.59 million in investment income, representing a 72% increase over the GHc72.91 million generated from this source in 2023. This increase reflects the prudence of the investment decisions made and the strong bargaining power deployed in negotiations.

However, within a highly inflationary, volatile and indebted economy with elevated financial risks, Ghana Re’s expenses inevitably also rose sharply too.

The Group’s insurance expenses almost doubled in 2024, the GHc998.84 million incurred last year being 96% higher than the GHc508.87 million incurred in the previous year. This growth was largely driven by a 40% increase in claims, from GHc486.35 million in 2023 to GHc680.55 million in 2024`, as the company strived to Honour its insurance obligations in a timely manner to retain the confidence of cedants.

Management expenses grew even faster, by 55% to GHc112.58 million, due primarily to macroeconomic factors such as the volatility of the exchange rate and rising operational costs due to the high inflation rate.  However, because Ghana Re was able to grow its revenues faster than its management expenses, the management expense ratio was lowered to 12% in 2024, down from 16% in 2023.

Nevertheless, the impact of impairment charges and modification losses on the company’s Eurobond investments, added to higher claims, commissions and management expenses, inevitably took their toll. Profit after tax declined by 63% from GHc224.90 million in 2023 to GHc84.22 million in 2024.

The Board ultimately decided to declare a dividend of GHc13 million to government as its sole shareholder.

Importantly, Ghana Re’s reinsurance revenue is forecast at GHc1,368.73 million for 2025 from which GHc126.95 million is targeted as profit after tax, this being a 50% increase over the after-tax profit for 2024.

To achieve these targets and improve the financial performance going forward, the company’s Board and Management are prioritizing the stabilizing of its profits, growing its retained earnings and expanding its capital base to improve its rating, attract business and increase profits and consequent dividends.

This is accompanied by the Board’s commitment to good corporate governance. Mr. Sarpong assured that it will continue to uphold the principles of accountability, fairness and transparency by holding quarterly meetings to oversee strategic and operational issues, asserting that “Ghana Re’s focus is to execute strategies that will reinforce our market leadership, strengthen our financial resilience and secure long term value for our shareholder.”

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