Ghana Reinsurance (Ghana Re) PLC has presented a cheque of GH¢12 million to its sole shareholder, the government of Ghana as a dividend for the 2021 financial year.
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.
Presenting the cheque to the government represented by the State Interests and Governance Authority (SIGA) during the annual general meeting of Ghana Re PLC in Accra on Thursday, Board Chairman Mr George Otoo said the company's financial performance improved massively in 2021 as against 2020 and committed to sustaining their upward growth in 2022 and beyond.
He said 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,
Shareholder's equity grew by 12 percent from GH¢387.76 million in 2020 to GH¢435.75 million in 2021.
"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," he stated.
He said 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 adding 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," he stressed.
With the establishment of a regional office in Morocco last year, he said, the company had 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, Amb. 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," he stated.
He added that other state-owned companies must 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 management in this country as they have shown great leadership and set the standards for business management," he said.
"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," he stated.
"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," he stressed.
He urged young entrepreneurs to take lessons from Ghana Re's success story in order to become successful business owners.
That he said would go a long way to ensure wealth creation and decrease the over reliance on government for jobs.