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26.11.2008 Business & Finance

Oil Find Poses ChallengesTto Insurance Industry

The oil find in the country poses some challenges for the operators of the insurance industry, the Chairman of the Ghana Re-insurance (Ghana Re) Company Ltd, Mrs Christine Dowuona-Hammond, has stated.

She said the company would therefore  increase its capital base and train staff in the oil industry  so as to take advantage of the find.

“We will endeavour to enhance the technical and professional competence of our team through various educational and training programmes in order to provide the best and most reliable services to our clients”. Mrs Dowuona-Hammond stated.

Speaking at the Annual General Meeting of the company in Accra yesterday,   Mrs Dowuona-Hammond admitted that the licensing of insurance companies was a great challenge to Ghana Re and that it would step up its marketing activities to widen  and increase  its premium base. 

She indicated that the company  managed to grow its gross premium income by 20 per cent from GH¢ 29.27 million in 2006 to GH¢ 35.10 million at the end of the 2007 financial year.

Giving details of the operations of the company, the board chairman said the product mix of non-marine,  marine and aviation components contributed about  88 per cent and 12.34 per cent growth in 2007 respectively.

Mrs Dowuona-Hammond said that the investment portfolio  of the company continued to grow and noted that a 30 per cent  increase was recorded with a realised return of eight per cent during the year under review.

“We will continue to restructure our investment  portfolio to ensure  an optimum mix, designed  not only to maximise returns  on investment but  in the main  also  to ensure  that  the company always  has sufficient funds  to meet  its obligations as a global re-insurer of choice”, she stated.

She said the company posted a net profit of Gh¢ 10.69 million, an increase of 86.76 per cent over and above the Gh¢5.72million recorded in the preceding year. 

In view of this, the company recommended an annual dividend of GH¢1.2million  representing 20 per cent over the GH¢1.0 million paid in 2006 for shareholders. 

Story By Mary Mensah