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TIONAL INSURANCE COMMI SS 2 18 ANNUAL REPORT & FINANCIAL STATEMENTS
IO N 2018 ANNUAL REPORT
www.nicgh.org National Insurance Commission
2018 | ANNUAL REPORT
2018 Annual Report National Insurance Commission
CONTENTS
Welcome 4 Foreword 5 Chairman’s Report 9 Key Facts 12
The National Insurance Commission Corporate Information 14
Ghana Insurance Market Report Economic Review 31 Ghana Insurance Market Report (2014 – 2018) 34 Financial & Ratio Analysis 64
Appendices 2018 Financial Reports 109 Fire Maintenance Fund 123 List of Registered Insurance Companies 132 List of Registered Reinsurance Companies 133 List of Registered Broking Companies 134 2018 Annual Report National Insurance Commission
Welcome
The 2018 Annual Report of the National Insurance Unless otherwise stated, all the information in this Commission (NIC) provides an overview of the report is based on the audited financial statements insurance sector in Ghana as well as the activities of the of the National Insurance Commission, the Insurance Commission. The purpose of this report is to provide Companies and the Intermediary Firms as at the end of detailed market information about the insurance 2018. The following firms did not submit their audited industry in Ghana, as at 2018, to help stakeholders information within the time specified and as such the make informed decisions in relation to the industry. information related to them are based on unaudited financial statements:
TABLE 1: FIRMS WHOSE INFORMATION ARE BASED ON UNAUDITED FINANCIAL STATEMENTS
Non-Life Best Assurance Company Limited Millennium Insurance Company Limited Glico General Insurance Company Limited Saham Insurance Company Limited GN Insurance Company Limited SIC Insurance Company Limited Heritage Insurance Company Limited Vanguard Assurance Company Limited Imperial General Assurance Company Limited Wapic Insurance Ghana Limited
Life Hollard Life Insurance Company Limited Vanguard Life Assurance Company Limited GN Life Assurance Company Limited Metropolitan Life Insurance Ghana Limited SIC Life Insurance Company Limited First Insurance Company Limited Glico Life Insurance Company Limited
Brokers AG & Associates Horizon Insurance Brokers Ceris International Lordship Insurance Brokers First Anchor Insurance Brokers Oak Insurance Brokers
The appropriate regulatory actions have been applied on the firms above.
Beige Assure Limited and Esich Life Insurance Company the insurance industry. Another set of information Limited were placed under enforcement action for the that the Commission publishes is a quarterly update year 2018. African Life Insurance Company Limited and on the insurance industry, which is published on the Avance Life Insurance Company Limited voluntarily Commission’s website www.nicgh.org. suspended their operations. The statistics for these firms may be incomplete. As opposed to the Annual Report which is based on audited financial statements, the quarterly summaries It is worth pointing out that this publication is part of are based on unaudited quarterly information the suite of information produced by the NIC about submitted by insurance companies and brokers.
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Foreword
On average, Africa contributes about 1.5% of the global 2. Economic development. When companies total Gross Written Premium. In 2017, the Gross Written have insurance, they are able to transfer risks Premium in Africa was about USD 67billion. The figure and undertake productive risk. The aggregate for 2018 is not expected to be significantly different from effect of this is increase in investment and this. South Africa alone, accounts for more than 60% economic development in the country. The of the premium generated in Africa. Excluding South ability of insurance to pool resources and Africa, the average insurance penetration rate in Africa invest for the long-term makes the insurance is about 1%, this compares very poorly, to a global sector a key stakeholder in the Capital Markets. insurance Penetration Rate of about 5%. These figures This is the reason why in most countries with paint a picture of an under-developed Insurance market a developed insurance market, there is also a in Africa. developed Capital Market.
The benefits of a well-developed Insurance market to Given the relatively underdeveloped state of the a country is well researched and documented. These insurance market in Africa, the benefits of insurance as benefits can be grouped into: described above have not accrued to African countries.
1. Improvement in the Well-being and Welfare of In the table below we set out some key statistics of some inhabitants. Insurance improves the well-being African countries to give an overview of the economic and welfare of the individuals and households environment and insurance market in these countries. of a country because of the peace of mind These are based on 2017 data. that having Insurance brings. This is further aided by the transfer of risk, greater access to financial services as well as the ability to undertake productive risk.
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TABLE 2: OVERVIEW OF ECONOMIC AND INSURANCE MARKET IN GHANA COMPARED TO OTHER AFRICAN COUNTRIES
Sub- Saharan Theme Indicator Ghana Nigeria Kenya Rwanda Africa average Socio-economic context Population (millions) 29 189 50 12 - Demographic Urban population (%) 55 50 27 17 40 GDP per capita (USD) 1,641 1,994 1,508 748 1,573 Macroeconomy GDP growth rate (%) 9 0.8 4.9 6.1 2.5 Inflation (%) 12 16 6 7.2 5.4 Government debt (% of GDP) 72 16.1 56 40.2 49.2 65 48 59 64 Political economy Mo Ibrahim Index of African Governance (index out of - Rank: Rank: Rank: Rank: 100) 8/54 35/54 13/54 9/54 Access to accounts (%) 58 40 82 50 42.6 Mobile money account (%) 39 6 73 31 21 Financial inclusion Smartphone ownership (% 21 48 59 52 43 adults) Insurance market context Penetration (GWP % GDP) 1.14 0.3 2.6 1.6 2.81 GWP (USD, billions) 0.6 1 2 0.14 60 Insurer’s asset base (USD, 1 3.2 5.1 0.46 Size billions) Size of Life industry (% of total market 45 32 40 18 672 premiums) Claims Life N/A 45 N/A 69 Value ratio (%) Non-Life 39 30 63 64 Combined Life N/A 112 N/A 108 Performance ratio (%) Non-Life 133 125 102 114
Sources: Cenfri 2019
The current underdeveloped state of the insurance individual has a relatively low amount of disposable market in Africa, (excluding South Africa) can be income, the individual will not prioritise the purchase attributed to the following: of insurance. This is one of the main reasons why the purchase of insurance is low for the low-income Low Disposable Income segment of the population in most countries. A statement that is commonly made about insurance is that, “insurance is sold and not bought”. This statement Poor Public Perception captures the fact that insurance is not something that Delays in the payment of claims and the repudiation most people would ordinarily buy. It is one of the last of legitimate claims by insurance companies have led items that most people would buy, as such, when an to a situation in which the public does not trust the
1 This figure includes South Africa. When South Africa is excluded, penetration drops to 0.9% 2 This figure is for Africa as a whole
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insurance sector and has a poor perception in most help facilitate greater participation of local insurers, in African countries. Whilst public perception of insurance the Insurance of Oil and Gas business. The regulations is improving, the image of the insurance industry to governing the operations of Ghana Oil and Gas the ordinary Ghanaian is not very favourable. This Insurance Pool (GOGIP) have been amended to allow reputation has not helped the efforts to increase the for greater local participation. A circular to this effect patronage of insurance. has been sent to the industry. The Commission expects this change to lead to about $100m growth in the local Low Capacity of the Insurance Sector Oil and Gas written premium per annum effective 2019. In general, the greater the assets of an insurance company, the better its capacity to absorb risks. In most Tackle the Challenges Facing Motor Insurance African countries, the total amount of assets held by the insurance sector is less than 5%. This situation limits Motor Insurance accounts for circa 25% of the total the extent to which the insurance sector can underwrite premium in the Insurance industry. However, it is faced mega risks. with a number of challenges including:
Initiatives to Grow the Insurance Sector - Significant number of uninsured vehicles. DVLA reports that it has registered over 2.2 million Due to the issues discussed above, one of the major vehicles and issues about 1.6 million road objectives of the Commission is to help facilitate worthy certificates each year. However, NIC the growth of the insurance industry in Ghana. The sells only 1 million motor stickers. This shows activities being undertaken by the Commission aimed that there is a large number of uninsured at achieving significant growth in the insurance sector vehicles or fake motor insurance stickers in are discussed below. circulation. Compulsory Insurance - Section 44 of the Insurance Act, requires that One of the key activities that the Commission is engaged the Commission together with the industry, in, is the introduction of a number of new compulsory sets out limits on third party injury claims. insurances as well as improving the enforcement of the However, this is yet to be done and has led to current compulsory insurance. The new compulsory relatively high awards in relation to third party insurance products being considered are: injury claims by the court. - Widespread undercutting / under-pricing in 1. Group Life: All firms with more than, say, four Motor Insurance Premiums. (4) employees will be required to have a group life policy of say five times annual basic salary To help address the challenges above, the Commission for its workers. is working on the following projects: 2. Workmen’s Compensation: Liabilities accruing - Implementation of the Motor Insurance from PNDC law 187 will have to be insured. Database – this will be a central database 3. Professional Indemnity: Professionals such as that the validity of a Motor Insurance Sticker doctors, nurses, engineers, architects etc. to can be checked against. The checks can be have Professional Indemnity cover. done through a text message or a QR reader. Discussions are ongoing with DVLA to ensure 4. Marine – Cargo & Hull: Compulsory for all that checks are made about the validity of goods being imported into Ghana. an insurance cover, before DVLA register or 5. Commercial building: Expand current law to undertakes a road worthy assessment. This include government property. will help reduce the incidence of fake and uninsured vehicles. 6. Public Liability Insurance. - Capping third party motor and death claims The Commission is engaging other bodies such as the – The Commission is working with the industry Ghana Shippers Authority, Ghana Revenue Authority, to set out limits for third party motor and death Accra Metropolitan Authority, Ghana Police Service and claims. the Driver and Vehicle Licensing Authority (DVLA) to help with the implementation of the current compulsory - Introduction of the enhanced NCD – The insurance. Commission has started the implementation of the enhanced No Claims Discount (NCD). This Greater Local Participation in the Insurance of Oil initiative is meant to help reduce undercutting and Gas Business in third party Motor Insurance. Another initiative the Commission is pursuing is to
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Memorandum of Understanding with Ghana • Promote Insurance of Micro Small Medium Shippers Authority Enterprise (MSMEs) – One of the key activities The Commission is in discussions with the Ghana that the Commission is working on is the Shippers Authority to draft a protocol between the promotion of the insurance of MSMEs. The Commission and Ghana Shippers’ Authority on Marine insurance sector currently serves the Micro Insurance. This will be similar to the protocol that Insurance and the corporate segment of the exists between the Commission and the Petroleum country reasonably well. However, there Commission on the insurance of Oil and Gas business. has not been specific attention paid to The aim of the protocol on Marine Insurance is to the insurance of MSMEs. Ghana Statistical collaborate with the Ghana Shippers Authority to Services estimates that smaller businesses in promote the uptake of Marine Insurance. Ghana employ about 2.6 million people and contribute over 70% of revenue generated Other Activities to promote the growth of Insurance by local Ghanaian firms. However, not a lot of these small business have insurance. The Some of the other activities being undertaken by the Commission is working on a strategy that Commission to help grow the insurance industry are: will make insurance more easily assessible to MSMEs. • Promote the Growth of Annuity Market – National Pension Regulatory Authority reports • Improving Public Trust in Insurance - The that private pension schemes are more than Commission has obtained funding from 4% of GDP. This and the fact that that there are the German Development Agency (GIZ), to about 2 million Ghanaians who are nearing undertake a survey of the insurance industry. retirement means that there is a market This survey will help the Commission come for retirees who need annuities to provide up with an Insurance Awareness Index and an them with regular and reliable income. The Insurance Confidence Index. These indices, Commission is working to build the capacity which will be updated on a regular basis, will of the insurance industry to develop and sell help the Commission assess the awareness of annuities. insurance and the trend of the public trust in the insurance sector. Based on the results of Work is also ongoing to collaborate with the indices in a given locality, a plan of action relevant stakeholders including government to can be drawn up to address specific issues that develop a market for annuities. the public has in relation to insurance. Other • Promote Agricultural Insurance - The Ghana activities related to improving public trust in Agricultural Insurance Pool (GAIP) has been insurance are: in existence for about five years. The take- o Greater enforcement of Claims up of Agricultural Insurance has not been as Management Guidelines. The expected. The insurance industry, principally, Commission will undertake more the Ghana Insurers Association (GIA) have been inspections to check adherence to undertaking a yeo-man task of subsidising Claims Management Guidelines in the Agricultural insurance in Ghana with an next quarters. average of about half a million cedis each year. The Commission in its effort to develop o Continue to resource regional offices to Agricultural insurance in Ghana, has secured undertake more public education on a grant from Alliance for a Green Revolution in insurance. Africa (AGRA) to develop a National Agricultural Insurance policy. The policy would consider issues such as whether there is a need for an Agricultural insurance Fund to receive contributions from a number of sources to help subsidise Agricultural Insurance.
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Chairman’s Report
Challenges in the Banking Sector and its Impact on the Insurance Industry In 2018, the Bank of Ghana revoked the licences of five more banks. The assets and liabilities of these banks were assumed by Consolidated Bank Ghana. The process of the revocation of licences and the assumption of assets and liabilities by Consolidated Bank affected the insurance industry in a couple of ways. Firstly, insurance companies which had deposits and investments with the affected banks faced some liquidity challenges. Secondly, a number of insurance companies suffered significant impairment of their investments placed with the affected banks. The impact on two companies were so severe that the NIC had to go through the legal procedure of seeking a court order to place them under administration in order to protect policyholders. The administration of the two companies is still in progress.
Performance (2018) – Growth in Premiums and both demand and supply side) have been outlined to Assets be taken to achieve this objective. These include the following; The above challenges notwithstanding, total gross premium income grew by a decent 21% from GHC2.4 • Construction and implementation of an billion in 2017 to GHC 2.9 billion in 2018. This can be Electronic Motor Insurance Database to stem compared to a 26% growth in 2017 over 2016. Industry the tide of fake motor insurance stickers and total assets similarly increased from GHC 5.4 billion uninsured vehicles both of which expose the to GHC 6.2 billion over the same period. In view of the public to significant risk. The electronic motor slowdown in growth rates and the impairment of assets, insurance database will store information on total corporate taxes paid by the industry declined to all motor insurance policies with an interface GHC 36 million down from GHC 50 million in 2017. with DVLA. It will be used to confirm the veracity of all motor insurance policies. The Insurance Penetration database will thereby also help to shore up the motor insurance premiums. It is worth noting Despite the 21% growth in the industry Gross Written that motor insurance accounts for about 35% Premiums, the insurance penetration rate reduced from of non-life premiums. 1.12% to 1%. The reduction in the penetration rate can be attributed to the rebasing of the Ghanaian economy • The passage of a new Insurance Bill to give in 2018. It is however, important to note that this rate better powers to the Commission to ensure excludes pensions and health insurance, which are a safe, sound and stable insurance market not regulated by the NIC. Since pensions and health thereby protecting the policyholder and other insurance are counted as part of the insurance industry stakeholders. The Bill when passed into Act in most countries, an effort was made to find out what will also contain relevant provisions to help the penetration rate will look like if the pensions and improve the weak segments of the industry health insurance figures are taken into account. The such as agricultural and marine insurance. result indicated that the penetration rate will be about It will also contain requirements on some 3%. compulsory insurances such as Group Life and Public Liability to protect innocent third The NIC 4-Year Strategic Plan parties who may be affected by other peoples’ Last year, my report comprehensively addressed the actions and inactions. challenges facing the insurance industry which tend to affect its profitability and growth. I did also mention • The plan targets areas such as marine and that the preparation of a four-year strategic plan was in agricultural insurance as well as annuities progress in which measures to address the challenges to grow the market gross premiums. Even will be outlined. The four-year strategic plan of the though Ghana’s economy is heavily import Commission was finalised and approved in August 2018. dependent, its marine insurance industry The overarching objective of the plan is to significantly is small and struggling. This means that grow the insurance penetration. Several measures (on most of the numerous items ranging from food, clothing, automobiles, household and
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Chairman’s Report
industrial equipment that are imported into • Insurance awareness and confidence index the country are all insured overseas. Usually, - under the plan, the Commission plans to the terms and conditions of such overseas undertake effective public education to improve insurances are not known to the importers and awareness and trust among the public and they are hardly able to claim any compensation thereby boost demand for insurance. An index when they suffer losses. Agriculture is the biggest for measuring public awareness and confidence employer and contributes significantly to the in insurance will also be created and regularly nation’s GDP. However, it lacks the necessary updated. insurance protection against the harsh risks of production. Lastly a vibrant annuities market will • Training of insurance agents – Insurance agents provide prudent options for retirees’ lump sum continue to be the main distribution channel for benefits whilst facilitating patient long term local the insurance industry. The Commission seeks to funds for national development. ensure that insurance agents are as professional • In order to achieve robust, sound, safe and as possible and are very knowledgeable in stable insurance market, measures have also insurance. To this end, the Commission, through been outlined in the strategic plan to improve the Ghana Insurance College is organising training supervisory effectiveness. An overall sub- for existing and prospective agents. objective in this area will be to improve compliance with the IAIS Insurance Core • The strategic plan also includes measures to Principles. This has been taken into account in improve the efficiency and effectiveness of drafting the new Insurance Bill. Related to this, the Commission. For example, the Commission the Minimum Capital Requirements for insurance will implement a Risk Management Framework entities will be reviewed to ensure that insurance to help identify risks that can hinder the companies have what it takes to operate efficiently achievement of regulatory objectives and take and are adequately capitalized to write and retain steps to mitigate same. A modern Performance large businesses and play their expected roles in Management System will also be implemented the economy. The Commission has been working to align the Commission’s strategic objectives to on a Risk Based Supervisory framework for some annual budgeted activities and staff performance time. This is expected to be completed by issuing and remuneration. The current regional branch Supervisory Risk Ratings for each company which offices of the Commission in Kumasi, Tamale, will then trigger a commensurate intervention Takoradi and Ho will be re-tooled and resourced by the NIC. A risk Based Capital framework will whilst additional offices will be opened in the also be implemented to link capital requirements regions in which the Commission currently does to the nature and levels of risks inherent in the not have offices. This will enable the Commission business and activities of insurance companies. A take its services closer to the people who need Market Conduct Supervisory framework will also them. be designed and implemented to ensure that The Commission plans to deploy technology and insurance companies deal with policyholders automation to improve its effectiveness. Apart fairly and transparently. from the Motor Insurance Database mentioned earlier on, the Commission is also working • The measures outlined above require adequate to upgrade its supervisory system to enable capacity in terms of skill and know-how. There insurance companies submit almost all their are therefore plans to collaborate with relevant regulatory applications and reports electronically. institutions to build capacity of the NIC, the Currently only the prudential returns are industry and relevant bodies in such areas as submitted electronically. Again, the Commission Accounting and Audit, Actuarial practices and will construct and implement an electronic Governance and Risk Management. There are Claims and Complaints Management System to measures to identify and design relevant courses improve the efficiency of claims management and other long term measures to significantly and payment by all insurance companies. improve on risk management, corporate governance, actuarial techniques, financial Progress made so far reporting and other relevant areas to improve efficiency, profitability and the quality of financial Work has started on most of the initiatives outlined reporting for insurance entities. above. The procurement of the consultants for the Motor Insurance Database has been completed paving the
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Chairman’s Report way for the commencement of work. The database is especially GIZ and AGRA who have contributed greatly to expected to be implemented before the end of 2019. the progress made so far. The drafting of the Insurance Bill and consultations with various stakeholders on same have been completed. Outlook for 2019 and beyond The next stage is submission to Cabinet for approval The Commission will complete work on, and implement after which it will go to Parliament for consideration and the Motor Insurance Database in 2019. This is expected to passage. significantly minimise the fake motor insurance stickers and make it easy for the police to check uninsured The Commission is working in consultation with vehicles on our roads. The Commission will also make relevant stakeholders such as the Shippers Authority, significant progress on the new Insurance Bill which is the Institute of Ship Brokers and Customs to address expected to be passed into law by Parliament by the end the marine insurance challenge. The Commission of 2019 or early 2020. with financial assistance from the Alliance for Green Revolution Africa (AGRA), has contracted consultants In order to take the services of the Commission and the to develop a proposed Agricultural Insurance policy to protection of the policyholder to the doorsteps of the be submitted to the government for approval, adoption people of Ghana no matter where they are located, the and implementation. It is expected that the policy will Commission will open three new regional offices in Cape be submitted to the government by the third quarter of Coast, Koforidua and Sunyani in 2019 and work towards 2019. The NIC has published requirements to be met by having an office in all regional capital by 2021. Life insurance companies desirous of writing annuities. A couple of training workshops have also been held to In pursuit of a stronger and financially sound market, build the capacity of insurance companies on annuities. the Commission will announce new Minimum Capital Requirements by the second quarter of 2019. An initial In terms of improvements in the regulatory framework, exposure draft on a Risk Based Capital Framework will the Commission has already published the new also be issued in 2019 to solicit comments from all Minimum Capital Requirements to be met by all regulated stakeholders towards an eventual implementation of a insurance entities by June 2021 in order to ensure a Risk Based Capital regime by 2021. financially sound and strong insurance industry. The Commission has also circulated an exposure draft on a Collaborations with Government, National Pensions Risk Based Capital Framework to solicit comment from Regulatory Authority and other stakeholders for the various stakeholders. The target is to have the Risk Based development of an effective annuities market will Capital regime fully implemented by the first quarter of continue in 2019 and beyond. 2021. Conclusion In the area of capacity building, the Commission has started sponsoring high quality training programmes As discussed above, appropriate strategies and measures for the industry. In 2018, the Commission collaborated aimed at addressing the challenges of the insurance with the Ghana Insurance College to organise five industry have been identified and carefully selected residential training programmes in such areas as Risk for implementation. The implementation of these Management and Corporate Governance; Financial measures is expected to generate significant growth in Reporting and Auditing; and Marketing and Insurance specified lines of insurance business such as Marine, Operations free of charge for insurance, reinsurance and Annuities, Group Life, Motor and Agricultural insurance. broking companies. This is expected to continue into the The measures are also expected to resolve the major foreseeable future. Towards this end, the Commission is supply side bottlenecks, improve capitalisation, financial planning the establishment of the Insurance Education soundness and hence efficiency of insurance companies Fund to cater for both capacity building of the industry and significantly improve consumer awareness and and the education of the public on insurance. Work is confidence. Not the least, supervisory capacity and on-going on the Insurance Awareness and Confidence efficiency will also be augmented. indices. This is expected to be completed in September 2019. However, these measures will not achieve the desired outcome, without the active support of all stakeholders, Some progress has also been made in the effort to especially the insurance industry. These together are improve the efficiency of the Commission. A detailed expected to substantially grow the gross premiums, report on this, will be made in the 2019 annual report. asset base and profitability of the insurance industry to enable it play its expected role in the development of the On behalf of the Commission, I would like to express Ghanaian economy. my sincere gratitude to our development partners,
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Key Facts of the Insurance Industry - 2018
The total assets of the insurance industry is GHS 6.2 bn - Life sector – GHS3.1bn - Non-Life Sector 2.4bn - Reinsurance -GHS0.7bn
Proportion of Ghanaians GHS 6.2bn with insurance cover
The estimated number of people employed in the insurance industry. 30% This is made up of agents, brokers and staff of insurers and reinsurers
Average daily benefit paid by Life insurers 12,000
Average daily claims incurred by Non-Life GHS1.9m companies.
The total reinsurance GHS 1.1m premium for 2018
The total corporate tax for 2018 GHS 255m
The total profit for 2018 in the insurance GHS 36m industry
The total premium for 2018 in the insurance industry. GHS 202m Life – GHS1.3bn Non – Life – GHS 1.3bn Reinsurance – 0.3bn GHS 2.9bn
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National Insurance Commission
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Corporate Information
Board of Directors: Mr. Ray Ankrah Chairman Mr. Justice Ofori Commissioner of Insurance Mr. Kwame-Gazo Agbenyadzie Member Mr. Sampson Akligoh Member Mr. Emmanuel Amofa Member Mrs. Geta Striggner-Quartey Member Prof. Bill Buenar Puplampu Member
Secretary: Mrs. Naa Shormeh Gyang (Appointed 1st October, 2018) Mrs. Emma Araba Ocran (Retired 18th September, 2018)
Management Team: Mr. Justice Ofori Commissioner of Insurance Mr. Michael Kofi Andoh Dep. Commissioner of Insurance Mr. Seth Eshun Head, Supervision Mr. Moses Ackah-Jayne Head, Human Resource & Administration Mrs. Esther Armah Head, Reinsurance /AML& CFT Mr. Joseph Bentor Head, Marketing & External Relations Mr. Martin Dornor Abayateye Head, Internal Audit Dr. Mahama Wayo Head, Finance Mrs. Naa Shormeh Gyang Head, Legal (Appointed 1st October, 2018) Mrs. Emma Araba Ocran Head, Legal (Retired 18th September, 2018)
Auditors: Boateng, Offei & Co Correspondent firm; Grant Thornton International Chartered Accountants P.O. Box CT 718, Cantonments, Accra Tel: 0302-779065 / 0573233718/9 Email: [email protected]
Bankers: Societè Generale Ghana Republic Bank (Ghana) Limited Universal Merchant Bank (Ghana) Zenith Bank (Ghana) Limited Limited Cal Bank Limited Consolidated Bank (Ghana) Limited GCB Bank Limited Stanbic Bank (Ghana) Limited
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Registered office: National Insurance Commission No. 67 Independent Avenue Appiah Ampofo-House North Ridge P. O. Box CT 3456 Cantonments, Accra
Digital Address GA-016-9180 Website www.nicgh.org Email Address: [email protected] Telephone No. 030 2 238300 / 030 2 238301
Branches: Tamale Area Office 0372023394 Kumasi Area Office 0322081808 Takoradi Area Office 0312293422 Ho Area Office 0362 026650
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Board of Directors
Mr. Emmanuel Ray Ankrah – Chairman Mr. Ray Ankrah is a highly experi- he led in several project implementations such as enced Chartered Accountant and Material Resource Planning, Activity Based Costing Chartered Global Management System, Cost Reduction Schemes, Profit Improve- Accountant with solid technical ment and Customer Profitability Analysis. Since knowledge, excellent communi- 2002, Ray has been working as Director and Head of cation skills and strong analytical the Tax Department at Ray Ankrah and Associates, a skills. He holds a post graduate firm of Chartered Accountants and Tax Consultants diploma in Strategic Financial Management from in the UK providing accountancy services to own- Kingston University in the UK. His accountancy ca- er-managed business clients and tax planning ser- reer commenced in Liberia in 1983 where he had the vices to clients with cross-border transactions. He is opportunity to work in audit and training, acquiring a member of the Institute of Chartered Accountants extensive experience in the audit of large compa- of Ghana and a Fellow of the Chartered Institute of nies, small and medium enterprises sector and con- Management Accountants (UK). He is an effective sulting for NGOs, such as USAID. He has previously team player and an influential leader who is driven held senior accountancy positions in the public by a passion for the cause. sector and audit firms in the UK as Head of Manage- ment Accounts and Deputy Finance Manager where
Mr. Justice Yaw Ofori – Member, Commissioner of Insurance Mr. Justice Ofori holds an In- a Chartered Insurance Professional of the Insurance ternational Executive MBA and Institute of Canada. Prior to his appointment, he a B.A. Honours from the Univer- was the Director of the Ghana Insurance College. Mr. sity of Ghana (Political Science Ofori has a wide range of experience in both teach- Major). He is a Fellow of the In- ing and practicing since qualifying as a chartered surance Institute of Ghana and insurer.
Professor Bill Buenar Puplampu – Member Prof. Puplampu is the Vice Governance, Human Resource Management and Chancellor of Central Univer- Organisational Behaviour. He has served on various sity. He is an academic, prac- Boards including Ghana Psychology Council, Mer- tising Chartered Psychologist chant Bank and Databank Educational Investment and member of the British Psy- Fund. He is a member of the National Development chological Society and Africa Planning Commission and a Fellow of the Ghana Academy of Management, with Academy of Arts and Sciences. He has taught at the specialization in Occupational and Organisational University of Westminster, University of East London Psychology. He holds a PhD in Organisational Be- (both in the UK), and the University of Ghana where haviour and MSc in Occupational Psychology both he was Head of the Department of Organisation & from the University of East London and BA in Psy- HRM at the Business School. He served as Dean of chology from the University of Ghana. He has over the Central Business School (Central University) and 25 years of research, teaching-academic, consulting was later appointed as the Pro Vice Chancellor for and practise experience in the application of orga- Academic Affairs. nizational psychology to Management, Corporate
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Board of Directors
Mr. Kwame-Gazo Agbenyadzie – Member
Mr. Agbenyadzie is a Chartered a Post Graduate Diploma in Actuarial Science from Insurer by profession, an City University, London; Diploma in Insurance and Associate of the Chartered Risk Management from the West African Insurance Insurance Institute, London, a Institute, Monrovia, Liberia. Kwame-Gazo has over Fellow of the Insurance Institute three decades of experience in insurance. He was of Ghana, the Actuarial Society the Chief Executive Officer of Metropolitan Insurance of Ghana and the West Africa now Hollard Insurance Ghana and had previously Insurance Institute. He holds an BSc Hons. and held various managerial positions with the State EMBA-Finance Option from the University of Ghana, Insurance Company.
Mr. Sampson Akligoh – Member
Mr. Akligoh is the Director of the Services Limited and with ADC African Development Financial Sector Division of the Corporation AG in Frankfurt, which was acquired by Ministry of Finance. Prior to this Atlas Mara in 2014. Sampson also previously served role, he worked in the financial as an Adjunct lecturer in International Economics at services industry in an advisory Ashesi University College in 2014. He holds a BA in and asset management firm as Economics and Law (First Class Honours) from the an economist. Sampson was the Kwame Nkrumah University of Science & Technology Managing Director of InvestCorp, a financial services in Ghana, and a Master’s Degree in Economic Policy firm in Accra, Ghana. In addition, he served as a Vice and Corporate Strategy from the Maastricht School President at Databank where he played leading roles of Management in the Netherlands. as an Economist, Head of Research and as a Fixed Income Strategist. He also worked at SIC Financial
Mr. Emmanuel Amofa – Member
Mr. Amofa is the Founder and He has also been appointed and acted as Co-arbitra- Managing Partner of Amofa & tor and Sole arbitrator in a number of domestic ar- Partners. His areas of expertise bitrations held under the Ghana Alternative Dispute and interest include Corporate Resolution Act, 2010 (Act 798) and under the Rules of Law, Investment Law and Ne- the Ghana Arbitration Centre. gotiation, Civil Litigation, Land Law, International Commercial He is a member of the Ghana Bar Association and a Law, International Business Transactions, Negoti- Panel member of Arbitrators on International Centre ation of Commercial Transactions, Arbitration and for Settlement of Investment Disputes, Washington Mediation, Petroleum and Energy Law, Legal Sector DC. Reform, Insurance Law, Privatisation and Banking Law. He is a lecturer in Alternative Dispute Resolution at the Ghana School of Law and an Adjunct Lecturer He is also the Administrator of the Ghana Arbitration of the University of Ghana Law School, Legon. He is Centre, since its incorporation in 1996. In 2003, he the country contributor for Ghana on contemporary was awarded a certificate in International Commer- law on arbitration in Ghana published in Arbitration cial Arbitration by the International Law Institute, in Africa: A Practitioner’s Guide, Kluwer Law Interna- Washington, DC and Georgetown University, Wash- tional, 2013. Authoured Chapter on Ghana Arbitra- ington, DC. tion Centre in Onyema Emilia (gen ed.) The Trans- formation of Arbitration in Africa: The Role of Arbitral Institutions.
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Board of Directors
Mrs. Geta Striggner-Quartey – Member
Mrs. Striggner-Quartey has banking and non-bank financial services, regulatory over 30 years work experience compliance in the securities industry. She now works encompassing an integrated in the telecommunications industry. Geta’s strong legal practice incorporating professional and communication skills have been corporate, commercial and liti- successfully harnessed to build productive relation- gation practice. ships and further both organizational and personal goals. She has held senior management level positions in business administration, public policy, investment
Mrs. Naa Shormeh Gyang – Board Secretary
Mrs. Gyang is a Barrister at Law the NIC in 2018, she worked with Merchant Bank and a Solicitor of the Supreme Ghana Limited now Universal Merchant Bank in key Court of Ghana with over 25 management positions. years Corporate Law practice. Mrs. Gyang provides support on the Legal, Regulatory She is a member of the Ghana and Governance Functions of the Commission. Bar Association. Prior to joining
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Senior Management
1 2 3 4
5 6 7 8
1. Mr. Justice Yaw Ofori – Commissioner of Insurance 2. Mr. Michael Andoh – Deputy Commissioner of Insurance 3. Mr. Seth Eshun – Head, Supervision 4. Mr. Joseph Bentor – Head, Marketing, & External Relations 5. Mr. Martin Dornor Abayateye – Head, Internal Audit 6. Mr. Moses Ackah-Jayne – Head, HR & Administration 7. Mrs. Esther Armah – Head, Reinsurance & AML 8. Mrs. Naa Shormeh Gyan – Head, Legal – Head, Finance 9 9. Dr. Mahama Wayo
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Operations
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Licensing In 2018, a total of five new companies were licenced by • Two Reinsurance Brokers. the Commission to operate in the insurance market in Ghana. These were: The chart below sets out the number and categories of regulated entities for 2018 which stood at 145 (excluding • One Non-Life company Reinsurance contact offices). • Two Insurance Brokers and
Figure 1: Number of regulated entities as at December 2018
The companies that were licenced in 2018 are: National Identification Authority Database- The NIC issued a circular to the insurance industry . Serene Insurance Company Limited (Non-Life informing them of the steps the Commission is taking insurance company) to enable (re) insurance companies and (re) insurance . Alhet Insurance Brokers (Insurance Broker) intermediaries to access information stored in the National Identification Database for underwriting and . J in G Insurance Brokers (Insurance Broker) claims investigation purposes at a fee. . Visal Reinsurance Broker (Reinsurance Broker) Criteria to be met by Annuity Underwriters in Ghana . Global Reinsurance Broker (Reinsurance - In seeking to promote the development of the annuity Broker) market in Ghana, the NIC issued a circular stating the objective of the annuity market and the criteria to be met by annuity underwriters in Ghana. Circulars and Guidelines Issued Roadmap for implementation of IFRS 9 and 17- To The NIC as part of its quest to ensure continued financial ensure that the insurance industry is ready for the soundness of regulated entities and an orderly insurance implementation of IFRS 9 and 17, the Commission has market, issued a number of circulars and guidelines to produced a road map to help insurance companies with regulated entities. Fundamentally, these guidelines the implementation of the IFRS 9 and 17. and circulars are targeted at improving ethical and fair market conduct to deepen and broaden the coverage of insurance in Ghana. Some of the guidelines and Compulsory Fire Insurance Enforcement circulars are set out below: The National Taskforce made up of officers from the Disclosure of Insurance Brokers in Good Standing- National Insurance Commission, the Ghana Police In order to improve upon the transparency and market Service and the Ghana National Fire Service set up to discipline in the insurance industry the NIC issued a enforce the Compulsory Fire Insurance, continued to circular notifying insurance companies of quarterly work in 2018. The team undertook several enforcement publications on insurance brokers in good standing. exercises in Accra, Kumasi, Takoradi, Tamale and Ho
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during the period under consideration. They inspected Court Cases 2088 commercial buildings to ascertain evidence of compulsory fire insurance. Swaytel Insurance Company - Unlicensed Insurance Company Out of the 2,088 buildings inspected, the owners of 396 buildings had procured compulsory fire insurance Swaytel Insurance Company was an unlicensed policies while the remaining 1,692 had not as required insurance company operating in Swedru. under the Law. The appropriate remedial actions have The suspect was arrested, put before the Law Courts, been taken. found guilty and convicted on all seven counts. The counts included operating an unlicensed insurance Penalties and Fines company, forging of fake Motor Insurance Stickers, and defrauding by false pretense. The Commission levied penalties against 28 Non-Life insurance companies, two (2) Life companies, and 23 The Special Investigations Unit of the NIC was brokers for various infractions to ensure compliance instrumental in the arrest and prosecution of the with the provisions of the Insurance Act 2006, (Act 724) accused. and NIC Directives.
Policyholders of Esich Life vs. Esich Life Area Offices Two policyholders of Esich Life started a court action The objective of the Area Offices is to bring the activities against the Company, due to delays in the payment of of the NIC closer to the public and to encourage public the maturity proceeds of their policy. patronage of insurance business. The Commission currently has four Area Offices. The NIC was joined in the suit against Esich Life. The The Kumasi office catered for Ashanti and Brong-Ahafo court awarded judgement against NIC and Esich Life. Regions; Tamale, the Northern and Upper Regions; Ho, the Volta and Eastern parts of the country; whereas New Products Approved in 2018 Takoradi office served the Western and Central Regions. The offices carried out their core activities of receiving Thirty-five new products were approved by the complaints from the public and resolving them. Where Commission in 2018 as opposed to twenty-seven the complaints were beyond their capacity, they referred in 2017. Most of the new products were for the Life them to the head office in Accra. Insurance sector. Only six out of the thirty-five new products were for the Non-Life sector. The table below summarises the products approved in 2018.
TABLE 3: PRODUCTS APPROVED IN 2018
Company Name of Product Allianz Life Allianz Education Allianz Life Allianz Group risk Allianz Life Allianz Wealth Master Allianz Life Term Life Insurance Allianz Life Farewell Insurance Allianz Life Group Credit Life Product Donewell Life Royal Funeral Plan Enterprise Life Reloaded enhanced FFP Enterprise Life Republic Education GN Life Life Guard Plan Hollard Insurance Master Card Insurance Product
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Company Name of Product Hollard Insurance Fuel Guarantee Hollard Life Credit Life Hollard Life Adepa Family Plan Metropolitan Life Employee Benefit Plan Phoenix Insurance Afentoboa (Micro) Prudential Life Tigo Hospital Support Plan Prudential Life Tigo Family Care Prudential Life Prudential Travel Insurance Prudential Life Enhancement of Premier Farewell Plan Prudential Life Educational Support Plan Prudential Life Future Life Plan-Bank Assurance Prudential Life Legacy Life Plan-Bank Assurance Prudential Life Life Guard Plan Prudential Life Life Secure Plan-Bank Assurance Quality Insurance Crop Insurance (World Cover) Quality Life Fa Bi Sie (Micro) Quality Life Wo Ba Daakye (Micro) Quality Life Emma No Ento Wo Ansa (Micro) Saham Insurance Saham Travel Saham Life Assurance Assured Rest Plus Saham Life Assurance Target Save and Insure Serene Insurance Travel Insurance Mi Life Mi Kids
Complaints In 2018, the Commission received and took actions that were not related to Esich Life, 589 cases were relating to a number of complaints received from the resolved through the intervention of the Commission. public and organizations against regulated insurance entities. The Commission received a total of 1,069 In terms of intra-sectoral split, 776 and 293 complaints complaints in 2018 as compared to 291 recorded in were made against Life and Non-Life insurance 2017. A significant proportion of the complaints received companies respectively. In terms of regional distribution, in 2018 was related to Esich Life. The total number of the Greater Accra Region recorded the highest number complaints relating to this Company was 440. of complaints, that is 603 (46.8%), whilst the Ho Area had the least complaints of 9 (1.16%). The graph below Out of the 629 complaints that were received in 2018, shows the distribution of complaints for both Life and Non-Life insurance.
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Figure 2: Life Insurers with the highest number of complaints in 2018
Figure 3: Non-Life Insurers with the highest number of complaints in 2018
For Non-Life sector, majority of the complaints were • delay in processing matured policies for related to motor claims. These were complaints related payment and to: • delay in returning refund of wrongful • Repudiation of claims deductions. • Delay in settlement of claims Areas of complaints included insurance company’s • Dispute over quantum, and failure to cease deductions after insurance policy is • Delay in payments of settled claims. surrendered and also benefits promised by insurers differed from benefits contained in policy documents. For the Life insurance sector the main issues that customers complained about were: The table below shows the total number of complaints • Unauthorised premium deductions against both Life and Non-Life insurance companies. • Perceived low surrender values
TABLE 4: SUMMARY OF COMPLAINTS BY SECTOR
COMPLAINTS Companies 2014 2015 2016 2017 2018 Life insurance companies 193 217 258 188 776 Non-Life insurance companies 327 222 94 68 293 Total 520 439 352 256 1,069 Others (uninsured vehicles) 35 47 2 35 -
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For Life Insurance, Esich Life recorded the highest The Complaints unit of NIC continuously engage number of complaints (440, 56.7%) with no complaints industry stakeholders in order to address concerns from First Insurance Company. For Non-Life insurance, of parties in the settlement of claims and prompt Star Assurance recorded the highest complaints (56, resolution of complaints. The tables below show the 19.1%) with Multi Insurance Company Ltd recording no distribution of complaints by companies. complaints.
TABLE 5: COMPLAINTS AGAINST NON-LIFE INSURANCE COMPANIES
Year Companies 2014 2015 2016 2017 2018 1 Activa International Insurance Co. Ltd 1 1 N/S 11 10 2 Allianz Insurance Co. Ltd 1 1 N/S 2 2 3 Best Assurance Co. Ltd N/A N/S N/S 0 3 4 Donewell Insurance Co. Ltd 19 15 16 8 14 5 Ecowas Brown Card 3 0 N/S 6 Enterprise Insurance Co. Ltd 3 8 6 4 6 7 Ghana Union Assurance Co. Ltd N/S - 1 2 1 8 Glico General Insurance Co. Ltd N/S 1 5 8 10 9 Hollard Insurance Co. Ltd N/S N/S 7 6 4 10 Heritage Energy Insurance Co. Ltd 3 4 3 1 8 11 Metropolitan Insurance Co. Ltd 3 4 N/S 0 N/S 12 Millennium Insurance Co. Ltd N/S 1 2 1 1 13 NSIA Insurance (Ghana) Co. Ltd 5 3 2 1 7 14 Phoenix Insurance Co. Ltd 7 4 7 2 2 15 Provident Insurance Co. Ltd 2 13 8 8 5 16 Prime Insurance Co. Ltd N/S 3 1 2 13 17 Priority Insurance Co. Ltd N/S N/S N/S 4 26 18 Quality Insurance Co. Ltd 10 11 16 12 11 19 RegencyNem Insurance Co. Ltd** N/S N/S 17 20 27 20 Saham Insurance Ghana Ltd 8 6 2 5 3 21 SIC Insurance Co. Ltd 45 60 59 20 44 22 Star Insurance Co. Ltd 28 25 46 24 56 23 Sunu Assurance Ltd. 10 11 20 17 24 Unique Insurance Co. Ltd 20 15 11 13 10 25 Vanguard Assurance Co. Ltd 16 14 14 10 5 26 Wapic Insurance Co. Ltd 2 1 12 6 9
TOTALS 193 217 258 188 293
*N/A - Not Applicable *N/S - Not Stated
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TABLE 6: COMPLAINTS AGAINST LIFE INSURANCE COMPANIES
Year Companies 2014 2015 2016 2017 2018 1 Adamas Life Co. Ltd N/A N/S 1 0 1 2 African Life N/A N/A N/A N/S 1 3 A-Plus Assurance Co. Ltd N/A N/S 1 1 4 4 Avance Life 8 4 5 5 21 5 Beige Life 10 13 5 4 24 6 Donewell Life Insurance Co. Ltd 5 3 0 3 9 7 Esich Life Insurance Co. Ltd N/A 3 8 12 440 8 Enterprise Life Assurance Co. Ltd 31 18 20 9 24 9 First Life Assurance Company Ltd. N/A N/A N/S N/S 0 10 Ghana Life Insurance Co. Ltd 3 4 2 4 16 11 Ghana Union Assurance Co. N/S N/S N/S N/S 1 12 Glico Life Insurance Co. Ltd 29 10 2 3 11 13 GN Life Assurance Limited N/A N/A N/A N/S 1 15 Metropolitan Life Insurance Co. Ltd 45 19 5 3 24 16 MiLife Insurance Company Ltd. N/S N/S N/S N/S 16 18 Old Mutual Life Insurance Co. Ltd* 9 3 13 2 39 19 Phoenix Life Insurance Co. Ltd 11 N/S 3 1 8 20 Prudential Life Insurance Co Ltd 84 65 5 1 30 21 Quality Life Insurance Co. Ltd 8 4 3 1 3 22 Saham Life Insurance Co. Ltd 9 4 6 0 3 23 SIC Life Insurance Co. Ltd 42 52 6 9 53 24 Star Life Insurance Co. Ltd 16 12 3 1 25 26 Vanguard Life Insurance Co. Ltd 13 5 2 8 21
TOTAL 327 222 94 68 776 *N/A - Not Applicable *N/S - Not Stated
Motor Compensation Fund The operations of the Motor Compensation Fund Conditions, such as Change of Ownership, inappropriate (MCF) is overseen by a Committee made up of officers drivers licence and driving without license which results from the Commission and insurance companies that in the repudiation of claims by insurers. underwrite motor insurance business. The purpose of the fund is to provide some level of compensation to The Awards Sub-Committee held eight (8) sittings persons or relations of persons who were injured or die during which it interviewed about 100 applicants. The in motor accidents involving Hit and Run and Uninsured applicants who were successful, were awarded a total Vehicles. In addition to the this, the MCF, provides some of GHS 1.2m from the MCF. compensation for the public in cases of Breach of Policy
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TABLE 7: AWARDS FROM MCF
2013 2014 2015 2016 2017 2018 No. of awards 115 107 128 105 78 105 Total amount (GHS) 282,816 551,900 682,764 606,241 1,276,772 1,201,169 Avg. claim per award (GHS) 2,459 5,158 5’334 5,774 16,369 11,439
Client Rescue Fund The Client Rescue Fund was retooled to play an produced recommendations aimed at streamlining active role in 2018 following the appointment of new the financial and technical activities of the Fund. The committee members to manage its operations. In 2018, technical subcommittee, for example, developed the Client Rescue Fund held four meetings during which an operational guidelines to serve as a blue print to it took far reaching decisions that has helped improve determine the formula for disbursing monies from the fortunes of the Fund. Finance and technical sub- the Fund in case an insurance company is in financial committees were formed. These sub-committees distress. The table below provides a summary of the financial statement of the Fund as at December 2018.
TABLE 8: SUMMARY OF FINANCIAL STATE OF CLIENT RESCUE FUND
Client Rescue Fund 2018 2017 Income 3,720,831 2,979,268 Expenditure (76,351) (7,511) Accumulated fund 12,750,824 9,105,678
The committee managing the Fund is in the process of to the Fund to reconsider their decision because of the engaging reinsurers who are currently not contributing enormous benefits to be derived.
Fire Maintenance Fund As required under section 185 of the Insurance Act of The NIC continued to create public awareness of the 2006, (Act 724) the NIC established the Fire Fund under Compulsory Fire Insurance through its public education the Compulsory Fire Insurance for Private Commercial activities. The table below summarises the financial Buildings and those Under Construction. state of the Fire Fund for 2017 and 2018.
TABLE 9: SUMMARY OF FINANCIAL STATE OF FIRE MAINTENANCE FUND
Fire Maintenance Fund 2018 2017 Income 895,777 934,590 Expenditure (280,259) (156,124) Accumulated fund 2,781,948 2,166,430
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Anti-Money Laundering and Combating the Review of Anti-Money Laundering and Financing of Terrorism (AML/CFT) Combating the Financing of Terrorism guidelines Following the 2nd round of Ghana’s mutual evaluation exercise by the Intergovernmental-Action Group Following the review of Financial Action Task Force Against Money Laundering in West Africa (GIABA) in (FATF) 40 recommendations in 2012 and the subsequent 2016, and subsequent adoption of its report in May amendment of the Anti-Terrorism and Anti-Money 2017, a follow-up report was issued in June 2018. The Laundering (AML) Acts in 2012 and 2014 respectively, it report assessed Ghana’s progress in addressing the became necessary that the insurance industry revised Technical Compliance (TC) deficiencies identified by its guidelines which were issued in 2012 to reflect the GIABA. It also considered progress in implementing changes and additions in these laws. new requirements relating to Financial Action Task Force (FATF) Recommendations which had been revised A team comprising staff of the NIC and industry since the Mutual Evaluation Report (MER) was adopted, representatives was constituted to review the guidelines. specifically, Recommendations 7 and 8. The document has since been concluded and approved for implementation. Ghana had made significant progress in addressing the identified technical compliance deficiencies in the MER • ADMINISTRATIVE SANCTION in relation to the FATF Recommendations. This led to One of the concerns raised during the GIABA a positive re-rating of some of the recommendations. Mutual Evaluation in 2016 was the absence Consequently, the country was placed on ‘enhanced of AML/CFT Administrative Sanctions which follow-up’ status. was thought to have impeded effective enforcement of the insurance sector’s AML/CFT FATF as part on its ongoing review of compliance with regime. GIABA therefore recommended the the AML/CFT standards in October 2018, added Ghana introduction of an Administrative Sanctions to to the list of jurisdictions that have strategic AML/CFT enforce compliance in the sector. deficiencies. An Action Plan has since been developed to try and resolve these deficiencies. The government A committee was set up by the NIC and an has committed to working with FATF and GIABA to Administrative Sanctions document was strengthen the effectiveness of the AML/CFT regime and drafted and discussed with the insurance address any related technical deficiencies. companies. The provisions are punitive enough to check compliance. However, Some of the objectives of the Action Plan are as follows: its implementation was deferred until the passage of the new Insurance bill. 1) Develop and implement a comprehensive national AML/CFT policy based on the risks identified in the National Risk Assessment • TECHNICAL ASSISTANCE (NRA), including measures to mitigate ML/TF risks associated with the legal persons. The International Monetary Fund (IMF) team continued to provide technical assistance to the 2) Improve risk-based supervision, by enhancing AML Unit. Offsite supervisory tools have been the capacity of regulators as well as the developed to enable Life companies (for now) awareness of the private sector. submit quarterly returns for analysis. 3) Ensure the timely access to adequate, accurate In addition, on-site examination procedures and and current basic and beneficial ownership a draft supervisory manual are being worked information. on. The manual when finalised will contain all 4) Ensure adequate resources are allocated relevant information required by the supervisor to the Financial Intelligence Centre (FIC) to to carry out AML/CFT Risk Based Supervision on enable it focus on dealing with risks identified insurance and broking companies. in the NRA. • 5) Ensure adequate and effective investigation INHERENT RISK ANALYSIS and prosecution of Terrorism Financing crimes. Life companies continued to submit quarterly 6) Apply a risk-based approach in monitoring returns via the NIC portal. Information was non-profit organizations. provided by populating offsite templates on business risks as well as the structural factors of a company. Business risks emanate from the following:
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- Customer and Beneficiary type (STRs) and the high turnover of Anti-Money Laundering Reporting Officers (AMLROs). - Product and Services - Channels of Distribution - Geographic Operations • REGULATORS FORUM The regulators forum which comprises Structural factors refer to the systems that a financial sector regulators - Bank of Ghana company has to enable it adequately mitigate (BoG), National Insurance Commission (NIC) its business and other risks. The information and Securities and Exchange Commission is then analysed to determine the composite (SEC) - with a mandate to foster cooperation risk of each company which is ranked in three and facilitate efforts at combating ML/TF met (3) levels namely; High, Medium and Low three (3) times within the period. risks. Companies with high composite risk scores were given priority in terms of onsite inspections. The meeting discussed among others, recommendations made by GIABA at its plenary meeting held in Senegal in May 2018 and also on how to address any outstanding • ONSITE INSPECTIONS issues. Five (5) companies which obtained a high composite risk rating were inspected in the course of the year. During each visit a company’s processes and controls were examined to check its effectiveness. The most common deficiencies include the non-filing of Suspicious Transactions Report
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Ghana Insurance Market Report (2014 – 2018)
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ECONOMIC REVIEW
Global Economy relatively low, increased from 2.6 percent in 2017 to 2.7 percent in 2018. This was lower than expected, partly The last decade has been punctuated by series of broad- due to weaknesses in the main large economies such based economic crises and negative shocks, starting as Nigeria, Angola and South Africa. The SSA region with the global financial crisis of 2008-2009, followed experienced a difficult external environment in 2018 due by the European sovereign debt crisis of 2010-2012 and to moderating global trade, tighter financial conditions, the global commodity price realignments of 2014-2016. and a stronger US dollar. Growth in Nigeria increased As these crises and the headwinds that accompanied up to 1.9 percent but oil production fell during the mid- them subdue, the world economy has strengthened, year and non-oil activity was dampened by lacklustre offering greater scope to reorient policy towards long- consumer demand and disputes that disrupted crop term issues. This, hopefully will ensure sustainable production. Angola, the region’s second largest oil economic, social and environmental developments. producer had its economy contracting by 1.8 percent as In 2017, global economic growth is estimated to oil production shrank. The South African economy grew have reached 3.0 percent, a significant improvement by 0.9 percent in 2018 as it emerged from a technical compared to the growth rate of 2.4 percent that was recession in the second half of the year, in part due to experienced in 2016. Two-thirds of countries worldwide improved activity in agriculture and manufacturing. experienced stronger growth in 2017 than in 2016. At However, growth remained subdued as challenges in the global level, growth in 2018 reached 3.1 percent the mining sector and weak construction activity were compared to 3.0 percent in 2017. This was a synchronized compounded by policy uncertainty and low business growth, in that all the regions in the world experienced confidence. growth. The Eurozone grew by 2.0 percent in 2018, Also, economies of the Central African Economic and down from 2.5 percent in 2017. Italy was a notable Monetary Community benefitted from an increase in exception in the Eurozone as it experienced a zero oil production, and oil prices that were higher in 2018. percent growth. The USA continued to grow on the back Economic activity in non-resource-intensive countries of fiscal stimulus. The US economy grew by 2.9 percent was robust, supported by agricultural production in 2018 due to strong fundamentals and increased fiscal and services, household consumption and public stimulus. However, the growth is expected to ease to 2.5 investment. A number of countries in the Economic percent in 2019. Community of West African States (ECOWAS) grew at 6 It is worth noting US trade hostilities with China and percent or more, including Benin, Burkina Faso, Cote Europe, uncertainty over Brexit and political instability d’Ivoire, Senegal and Ghana. In spite of this growth in countries including Brazil was a drag on growth. by some ECOWAS countries, balance of payments The US implemented its increased regime of tariffs financing became more difficult against the backdrop of on Chinese products in 2018 by increasing tariffs on a rising external borrowing costs and weakening capital whopping USD200 billion worth of Chinese products. flows. Currencies in the region depreciated as the US The Chinese government also retaliated with tariffs on dollar strengthened and as investor sentiment toward US products entering their market. Most economists are emerging markets wavered. Growth of the economy of the view that the US-China trade hostilities will not of the Sub-Saharan Africa is expected to accelerate be beneficial to both parties and the global economy at to 3.4 percent in 2019 due to expected diminished large. (Atradius: Global Economic Outlook, 2018). policy uncertainty and improved investment in large economies together with continued growth in non- resource intensive countries (The World Bank Group, The gross domestic product (GDP) growth across Global Economic Prospects: Darkening Skies, 2019). Emerging Market Economies (EMEs) in 2018 was 4.5 percent which is most likely to go down to 4.4 percent in 2019 due to the poor policymaking. Emerging Asia Ghanaian Economy remained the growth leader with a growth of 6.0 percent in 2018, but is expected to ease to 5.6 percent in 2019. The Ghanaian economy registered a positive growth in 2018, albeit a slower rate compared to 2017. The real Gross Domestic Product (GDP) expanded faster in the second half (7.4%) than the first half (5.4%) of the year. Sub Saharan Africa Economy Real GDP growth closed the year in December 2018 at Growth in the Sub-Saharan Africa (SSA), even though 5.10 percent compared to 5.53 percent in December, 2017, a 0.43 percent decline. The decline in the real
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GDP growth is due to the slowdown in the expansion of a strong and recapitalized banking sector. The oil and oil from the previous year (Financial Stability Council: gas sector will be attracting oil giants like ExxonMobil, Macro-Financial Risks, 2019). Total and Eni who have all submitted bids for the sixty (60) blocks of onshore and offshore oil fields. The Bank Industry spurred the growth by being the fastest growing of Ghana’s instruction issued in September 2017 for sector and expanding by 10.4 percent and 11.1 percent banks to increase their minimum capital from GH¢120 in the first and second quarters of 2018 respectively. million to GH¢400 million (233 percent increase), has The mining and quarrying sub-sectors boosted the resulted in a recapitalized and strong banking sector. performance in the growth by expanding by 28 percent, A total of twenty-two banks met the minimum capital 24.7 percent and 23.9 percent in the first, second and requirement by the close of December 2018. While third quarters respectively. the banking sector looks stronger than before, the managers of the economy must also pay attention to The country recorded a trade surplus of $1.6 billion risk from the non-banking sector which could spread to in 2018 on the international trade market compared the rest of the financial system (Ghana: Year in Review). to $1.07 billion in 2017. This improvement in the international trade balance was due to increases in crude oil exports. Total exports increased to $14.87 billion Inflation in 2018, with gold, cocoa and oil exports contributing Headline inflation dropped from 11.8 percent in $4.71 billion, $1.6 billion and $3.83 billion respectively, December 2017 to 9.4 percent in December 2018. The compared to $13.84 billion in 2017. Consequently, total decline was as a result of a tight monetary policy stance imports in 2018 stood at $13.10 billion as against $12.65 taken by the Bank of Ghana. The 2018 fiscal year began billion in 2017 with oil imports being $2.1 billion. The with inflation at 10.3 percent in January and inching up current account balance improved at the end of 2018 to 10.6 percent in February and dropping to 9.6 percent in with a deficit of -$0.934 billion which translate to 1.4 April. However, in June inflation went up to 10.0 percent percent of GDP as against -$1.195 billion in 2017. Whiles before closing the year at 9.4 percent in December 2018 there was an improvement, a negative current account with the consumer price index (CPI) standing at 9.3 balance was recorded, and this does not indicate a percent in November, below the 11.8 percent inflation good omen for the economy. Consequently, the budget rate for 2017. The food and non-alcoholic component deficit stood at a target of 4.5 percent of GDP in 2018 of the index rose by 8.6 percent year-on-year, up from with the urge to bring it down to 4.2 percent in 2019. 6.8 percent in January, but still below the 13.6 percent Import cover or gross international reserves improved recorded in December 2017. This was the lowest rate in 2018 recording 3.6 months compared to 3.1 months seen since July 1992. The overall non-food inflation for 2017 which was largely due to the improvement in declined over the year from 12 percent in January to 9.7 the trade balance/account (Financial Stability Council: percent in November in 2018. However, transport costs Macro-Financial Risks, 2019). with the inclusion of fuel prices rose by 13.7 percent; clothing and footwear 12.6 percent and miscellaneous Ghana’s total debt stood at GH¢172.8 billion as at goods and services at 10.3 percent (Ghana: Year in the close of 2018, split into external debt of GH¢86.3 Review, 2018). billion and domestic debt of GH¢86.5 billion. Total debt accumulation in 2018 was 19.8 percent occasioned by the cost of the clean-up of the financial sector with the Interest Rates resolution of the seven defunct banks. The public debt The Monetary Policy Committee (MPC) of the Bank of (including financial sector bailout) as a percentage of Ghana dropped the policy by 100 basis points to 17 GDP stood at 70.7 percent at the end of September 2018 percent in November 2018. This is consonance with compared with 69.2 percent during the same period in the fall in inflationary trend closing at 9.4 percent in 2017. By excluding the financial sector clean-up cost, November 2018. However, the same period in 2017, the the public debt stood at 66.5 percent of GDP. In terms rate was reduced by 50 basis points bringing it to 25.5 of the rebased GDP, the public debt to GDP ratio is 57.2 percent. Average lending rates declined to 26.86 percent percent including the financial sector clean-up cost in December 2018 from 29.3 percent in December 2017 and, 53.9 percent, excluding the clean-up cost (Budget due to tight monetary stance by the Bank of Ghana and, a Statement, 2019). reduction in the inflationary trend. Short-term securities market made some gains in terms of interest rates with The International Monetary Fund (IMF) in its latest 91-Day Treasury Bills which began the year with interest global outlook report forecast that the Ghanaian rate of 13.34% closed at 14.59% in December 2018. economy will continue to grow strongly with an Also, 182 Day Treasury Bills commenced the year with a estimated growth of 7.6 percent in 2019. This will be rate of 13.88% and ended up with 15.03% in December on the backbone of increased oil and gas activities and 2018. The 1-Year and 2-Year Notes which started the
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year with 15.00% and 17.18% closed at 15.50% and Ghanaian capital market, especially in domestic capital 19.50% respectively in December 2018 (Bank of Ghana: mobilization. Corporate Bonds saw a sharp increase Quarterly Economic Review, 2018). in 2018 from GH¢2.84 million in 2017 to GH¢5,983.30 million, while GoG Notes and Bonds also went up to GH¢29,087.01 million in 2018 from GH¢15,767.64 million Exchange Rates in 2017. This signifies a massive capital mobilization on The Ghanaian cedi rolled-over its good performance the Ghanaian bourse in 2018. against the major foreign currencies in 2017 into the commencement of the 2018 fiscal year. The cedi traded The sectorial trades breakdown saw the Mining sector at GH¢4.42/USD at the beginning of the year and closed leading with a value traded of GH¢233,210,396.06 at GH¢4.82/USD, with an approximate depreciation of followed by the Finance sector with a value of 9 percent. Against the British pound sterling it trade at GH¢195,581,494.66. While the Mining sector increased GH¢5.98 to the Pound at the commencement of the tremendously compared to the 2017 value, the Finance year and GH¢6.17 to the Pound at the end of the year; sector dropped significantly from GH¢370,213,205.39 while the Euro started at GH¢5.30/Euro and closed at during the same period. The drop in the Finance sector GH¢5.51/Euro (Bank of Ghana: Quarterly Economic could be attributed to the turbulence in the Banking sub- Review, 2018). sector leading to the collapse of some banks in 2018. The Insurance sector increased the trade volume and value Developments on the Ghana Stock Market in 2018. The trade volume increased to 11,090,154 shares compared to 10,544,969 shares in 2017; whilst the trade The Ghanaian Stock Exchange Market (GSE) ended value went up to GH¢27,397,542.12 in 2018 as against trading for 2018 with the GSE Composite Index, which GH¢14,663,458.56 in 2017. This indicates approximately measures the total performance of the market dipping 89 percent increase in the value traded with the two by -0.29% to close at 2,572.22 points compared to insurance companies listed on the Stock Market 2,579.73 points of the 2017 index. Also, the GSE Financial (Ghana Stock Exchange: Market Report, 2018). Both the Stock Index dropped by -6.79% in 2018 to close at volume and the value could possibly be higher if more 2,153.74 points as against 2,310.58 points in 2017. insurance companies were listed on the Stock Market. However, market capitalization inched up by 3.97% to It is pertinent that insurance companies in the country close to at GH¢61,136.53 million in 2018 with 2017 figure looked forward and pro-active by taking advantage of being GH¢58,803.96 million. There was a huge leap in the Ghanaian Stock Market to mobilize capital in the domestic capitalization by 56.28% from GH¢16,244.34 wake of the proposed increase in the minimum capital million in 2017 to GH¢25,387.18 million in 2018. This requirement for the insurance industry. signifies the confidence investors have built in the
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Ghana Insurance Market Report (2014 – 2018)
Assets and Liabilities 15% to GHS 6.2bn in 2018 from GHS 5.44bn in 2017. In this section, we set out the Assets and Liabilities of • The Life sector grew by 8% from GHS 2.89bn in the Life insurance, Non-Life insurance and Reinsurance 2017 to GHS 3.12bn in 2018. sectors. We first provide an overview of the assets of the • industry and then compare the assets with the liabilities. The Non-Life sector grew by 28% to end the year 2018 at GHS 2.38bn from GHS 1.86bn in The following were the growth rates in assets 2017. experienced in 2018: • The reinsurance sector ended the year 2018 • The assets of the insurance industry grew at at GHS 0.73bn from GHS 0.69bn in 2017 representing a growth of 6%.
Figure 4: Analysis of Industry Total Assets by sector
The next figure gives an overview of the Total Assets of the Life and Non-Life sectors over a five year period (2014-2018).
Figure 5: Analysis of Industry Total Assets – 2014 to 2018
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The assets of the Life and Non-Life insurers are made that makes up the total assets of insurers. This is done up of Cash, Investments, Property, Plant and Equipment separately for Life and Non-Life insurers. (PPE), Receivables, Intangibles and Other Assets. The next chart shows the amount of each asset category
Figure 6: Asset Classes for Non-Life Industry – 2014 to 2018
Figure 7: Asset Classes for Life Industry – 2014 to 2018
From the two charts above, receivables continue to be aimed at ensuring the amount of recievables on the a more significant asset class for Non-Life insurers than balance sheet of insurance companies are not excessive. for Life insurers. Whereas receivables in Life insurers are dominated by policy loans, in the Non-Life however, the Most of the PPE in the insurance industry is land and receivables assets class is dominated by Reinsurance. buildings occupied by the insurers. In 2018, GHS 392m of the GHS 556m receivables of the The next sets of graphs focus on the investments of the Non-Life insurers representing 71%, are amount due insurance industry. Again, this is presented separately from Reinsurers and Reinsurers’ share of technical for the Life and Non-Life sectors. provisions. The Commission will continue with activities
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The graphs show that the main asset classes of the Life and Term Deposits at licenced banks (20%) sector are Government securities (35%), Property (24%)
Figure 8: 2018: Investment mix of the Life Insurance Industry
Due to the difficulties experienced in the Banking sector, GHS 525m in 2017 to GHS 914m in 2018 representing an there has been a flight to safety. It can be seen from the impressive growth of 74%, investment in fixed deposits graph below that whiles investment in relatively safer at banks and other deposits have reduced significantly. Government of Ghana securities has increased from
Figure 9: 2018: Investment mix of the Life Insurance Industry
The next graph below compares the investment mix the asset class that experienced the most growth. SIC, of the Non-Life insurers at year end 2017 with that of Star, Prime and GUA were the major contributors to the 2018. It reveals that in 2018, Property Investment was increase in property investments.
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Figure 10: 2018: Investment mix of the Non-Life Insurance Industry
The industry at year end 2018 continued to be was a decline with respect to the exposure compared to significantly exposed to the crisis in the banking Sector the previous year as revealed below. via Term Deposit held at licenced banks though there
Figure 11: 2018: Investment mix of the Non-Life Insurance Industry
A comparison is now made between the assets and the depiction below. However, this analysis does not liabilities of the insurers. The pictorial diagram below consider the quality of the assets and appropriateness shows the investments as well as the Technical of assets, which are part of the on-going deliberations Provisions of the insurers. between the Commission and individual insurers. The liabilities of the insurance industry are made up of the The diagram below shows that the industry continues to Technical Provisions (liabilities due to policyholders) have sufficient investments and for that matter assets to and other liabilities (short term liabilities and long- cover the liabilities. It is also worth pointing out that over term liabilities). The next set of graphs shows how the GHS 384m representing cash have been excluded from liabilities are split across Life and Non-Life insurers.
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Figure 12: 2018: Assets and Liabilities of Insurance Industry
Reinsurance Sector
Figure 13: 2018: Assets and Liabilities of Reinsurance Industry
The above figure depicts that aggregate assets for 2. Profit After Tax the reinsurance industry for 2018 was at GHS 734m 3. Total Assets compared to GHS 649m in 2017. This represents a growth of 13% in 2018 compared to the growth rate of 4. Gross Written Premiums 23% in 2017. In 2018, the aggregate technical provisions for the reinsurance sector stood at GHS 171m from GHS We set out below the market leaders based on each of 154m in 2017 representing a growth of 11%. the criteria below. Total Equity in the reinsurance industry grew by 9% to Non-Life Market Leaders – Underwriting Profit settle at GHS506m in 2018 from GHS 466m in 2017. The primary activity of an insurer is to underwrite risks. Thus it is important that the insurer is undertaking this activity reasonably well. Given the persistent state of Market Leaders in the Insurance Industry in Ghana underwriting losses being experienced by the industry and the reduction in investment returns, it is imperative Four main criteria are used to assess market leaders: to highlight the importance of underwriting profits. 1. Underwriting profits (for Non-Life insurers only, The graph below shows the top ten Non-Life insurance savings product in the life sector distorts this companies in terms of underwriting profit. analysis)
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Figure 14: 2018: Market Leaders (Non-Life) - Underwriting Profit
Non-Life Market Leaders – Profit after Tax bottom line of the insurer. It is important to emphasise that whilst premium volume has some usefulness, profit The main difference between underwriting profit and after tax is more important. profit after tax, is investment income and tax. This is the
Figure 15: 2018: Non-Life Market Leaders – Profit after Tax
Life Market Leaders – Profit after Tax bottom line of the insurer. It is important we emphasise that whilst premium volume has some usefulness, profit The main difference between underwriting profit and after tax is more important. profit after tax, is investment income and tax. This is the
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Figure 16: 2018: Life Profit After Tax (GHS’m)
Non-Life Market Leaders - in terms of Total Assets 1.66bn representing 70% of the Total Assets for Non-Life insurance sector in 2018. The chart below shows the top 10 Market Leaders in the Non-Life sector in terms of Total Assets. The top ten firms, by total assets, contributed a whopping GHS
Figure 17: 2018: Non–Life insurers with largest Total Assets
Life Market Leaders – Total Assets sector than in the Non-Life sector. This is primarily due to the lack of compulsory insurance in the Life sector, The chart below sets out the assets of top 10 Market as such purchases of Life insurance products are done Leaders in the Life sector in respect of Total Assets. with greater expectation of a payment of a benefit. Thus They contributed a significant amount of GHS 2.83bn the importance of brands are more significant in the Life representing 91% of the Total Assets for Life insurance sector than the Non-Life sector. Life insurance firms that sector in 2018. It can be seen that there is greater are more trusted attract a greater proportion of the Life concentration of market share in the top ten of the Life insurance premiums.
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Figure 18: 2018: Life insurers with largest Total Assets
Reinsurers Market Leaders – in terms of Total Assets represents a market share of 67%. GN Re followed with total of GHS 170m representing 23%. Also Mainstream Ghana Re continues to be the market leader. The chart contributed GHS 71m representing 10% of the total below sets out the total assets of the three reinsurers reinsurers assets. in the industry. Ghana Re’s total assets of GHS 493m
Figure 19: 2018: Reinsurers with largest Total Assets
Non-Life Market Leaders – Premiums It is worth noting that this position was held by SIC in the prior year 2017. Star and Vanguard also contributed At year end 2018, Enterprise led the market with total GHS 123m and GHS 104m respectively. Contributions premium amounting to GHS184m, followed closely by from the 10 market leaders in terms of premiums SIC with GHS178m. amounted to GHS 959m representing 74% of the total premium (GOGIP excluded).
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Figure 20: 2018: Non–Life Insurers with highest premium
Life Market Leaders – Premiums life and Glico Life also contributed GHS 209m and GHS 109m respectively. Contributions from the 10 Life market Enterprise Life maintained its lead in terms of premium leaders in terms of premiums amounted to GHS 1,250m volume. Enterprise Life had total premium of GHS 306m representing 93% of the total premium. in 2018. SIC Life followed closely with GHS 304m. Star
Figure 21: 2018: Life Insurers with highest premium
POLICYHOLDER BENEFITS PAID represents 95%. As depicted in the graph below, SIC Life led the market with a total benefit payment of GHS In 2018 the total benefit payments made for Life 212m. Enterprise Life made a payment of GHS 179m business amounted to GHS 704m. GHS 671m of these followed by StarLife with GHS 92m and Glico Life with payments were made by the top 10 Life insurers. This GHS 65m.
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Figure 22: Life Market leaders – In terms of Policyholders Benefit Paid
Underwriting Results their underwriting results. The challenge will be how the industry react going forward to the declining treasury The Regulator continues to be concerned about the rates. consistent failure of its regulated entities to remain profitable in their core business of operations. The As stated earlier analysis of underwriting profits of life chart below shows constant underwriting losses in sector is not particularly helpful due to a significant part the insurance industry (both Life and Non-Life) over of the business being savings products. A more useful the past three years. The industry continues to rely on analysis would be to assess the risk premium with the investment income to compensate for the losses in benefits paid for the risks.
Figure 23: 2018: Life Insurers with highest premium
Profit After Tax (PAT) Life contributed GHS 95m representing a share of 47% compared to a share of 59% in 2017. Non- Life In 2018, Total Industry PAT stood at GHS 204m from a contributed GHS 108m in 2018 representing a share of high of GHS 245m in the prior year of 2017 representing 53% compared to a share of 41% in 2017. This shows a contraction of -17%. Of the total industry profit,
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that the reduction in the profitability of the industry the reduced investment returns due to lower returns is primarily due to Life sector. This is to be expected on government securities and the challenges in the because of the significance of savings products in banking sector. the Life sector, which has been adversely affected by
Figure 24: 2018: Yearly Aggregate Industry Contribution (GHS’ m)
Gross Premium (Life and Non-Life) was GHS 1.34bn whilst the Life industry contributed 49%, that is, GHS 1.30bn. When GOGIP’s premium are Total industry premium without GOGIP contribution included, Non-Life contribution increases to GHS1.60bn amounted to GHS 2.6bn in 2018. 51% of this was representing 54% of the total amount whilst Life’s contributed by the Non-Life industry whose premium contribution declines to 46%.
Figure 25: Gross Premiums: Yearly aggregate industry contribution
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Below is a pictorial representation of proportions of premium by Life and Non-Life before and after GOGIP’s inclusion;
Before GOGIP’s inclusion
Figure 26: 2018: Proportion of premium by Life and Non-Life sectors
After GOGIP’s inclusion
Figure 27: 2018: Proportion of premium by Life and Non-Life sectors (%)- GOGIP inclusive
Premium Contribution by Distribution Channels distribution channels used in the Life sector are the telecommunication companies and corporate agents. Again in 2018, the leading channel for the distribution of Life insurance products was Individual/Tied Agents, On the other hand, Brokers continued their dominance contributing 64% of Life’s annual premium income. as the leading channel for the distribution of Non-Life Direct business also contributed 14% of the premium, insurance products with a contribution of 40% of the whiles insurance brokers contributed 6%. Non-Life’s annual premium income, individual/tied agents and direct business contributed 30% and 23% Bancassurance ended the year 2018 with 11% down respectively. Bancasssurance, other corporate agents from 13% in 2017. The reduction in the proportion and Others made up the rest of the Non-life premium contributed by bancassurance is primarily due to the income. challenges experienced in the banking sector. The other
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Analysis of Premium Income by Distribution Channel
Figure 28: Non-Life Channel of Distribution (2018 & 2017)
Figure 29: Life Channel of Distribution (2018 & 2017)
Regional Distribution of Premiums (Non-Life and of the reasons for this is that most companies head Life) offices are located in Greater Accra, thus insurance purchased for the entire operations across the country The graph below paints a picture of the concentration of will be paid for in Accra. This reason, however does not the sale of insurance in Greater Accra. This is especially diminish the fact that majority of business activities and prevalent in the Non-Life sector in which Greater Accra individuals that have insurance are located in the urban contributed 84% of the Non-Life sector’s premium. One areas.
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Figure 30: 2018: Regional Distribution of Premiums for both Life and Non-Life
Premium distribution by Class of Business 1. The important of compulsory insurance 2. The over reliance on compulsory insurance. Non –Life sector These two issues highlights the work the industry has Motor class of business maintained its dominance to do to improve its image to help with the sale of non- in the Non-Life insurance sector, contributing compulsory insurance products. 37%. This figure increases appreciably, when the The Oil and Gas class saw a significant growth of 80%. analysis is done excluding premium from GOGIP. The That is from GHS168m in 2017 to GHS302m in 2018. premium for Motor Insurance for 2018 was GHS 599m Some of the increase is explained by the weakening of compared to GHS 566m in 2017, meaning premiums the Ghanaian cedi and the fact that premiums are paid for Motor Insurance grew by 6%. in dollars. The second important class of business is Theft and Engineering and Liability came 4th with contributions of Property. This grew by 13% from GHS272m to GHS308m. 6% each and premium income of GHS9m each. Personal A common feature of the two dominant classes is that Accident, Marine and Aviation and Financial loss came there is an element of compulsion in the purchase of 6th, 7th and 8th with a contribution of 5%, 4% and 4% these insurance. This highlights two issues: respectively.
Figure 31: 2018: Analysis of Non-Life Premiums by class of business
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Ghana Oil and Gas Pool The graph below shows the gross premium and claims of GOGIP for 2018, 2017 and 2016 respectively. GOGIP is a pool of 22 Non-Life insurance companies The Gross Premium for 2017 and 2018 is equivalent that has the mandate to provide insurance cover for to about GHS 168m (USD 47m) and GHS 302m (USD activities related to the Oil and Gas business in Ghana. 63m) respectively.
Figure 32: Gross Premium and Claims (USD ‘millions)
Life fact that the market continues to be dominated by savings or investment-linked products. Whole Life & The Life industry in 2018 also maintained the same Endowment came second with 27% ending the year trend as Universal Life led the sector and ending the at GHS 335m. Group Life stood at GHS 109m year-end year at GHS 671m with contribution of 50% shedding contributing 8% and taking the third position. Term, away the 2% points it gained in the prior year with Credit and other approved products all contributed a premium income of GHS 558m being 52% of the 5%. premium income of life insurers. This confirms the
Figure 33: 2018: Analysis of Life Premiums by Class of Business
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Reinsurance Premium
Figure 34: Reinsurance Premium
The graph above depicts the reinsurance premium received by Ghanaian reinsurance companies for the past three years split by the Life and the Non- Market Leaders – in terms of Total Assets Life sectors. It shows that Non-Life total Reinsurance The diagram shows the 10 top market leaders in the premium improved marginally from GHS 224m in insurance broking industry in 2018 in terms of total 2017 to GHS 235m in 2018, whiles that of the Life’s assets. The top ten market leaders shown in the graph also saw an improvement to GHS 20m in 2018 from below, contributed GHS 80m representing 63% of the GHS12m. Total Assets of brokers ( GHS 127m). The composition of Insurance Broking Market the market leaders has not changed significantly from last year.
Figure 35: 2018: Direct Brokers Market Leaders - in terms of Total Assets (GHS m)
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Figure 36: 2018: Reinsurance Brokers Market Leaders- in terms of Total Assets (GHSm)
Market Leaders – in terms of Commission. at year end 2017. Total commission for Insurance Brokers stood at GHS KEK Insurance Brokers, Edward Mensah, Wood & 113m in 2018 up from GHS 86m in 2017 representing a Associates Limited, and Willis Towers retained their growth of 31%. Out of the total commission received, respective positions as 1st, 2nd and 3rd in the sector. the top ten market leaders contributed, a total of GHS Shield Insurance Brokers, a newcomer in 2018 jointly 68m in 2018 compared to the GHS 58m contributed as tied with Horizon Insurance Brokers for the 5th position.
Figure 37: 2018: Market leaders - Brokers Commission (GHS’ m)
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Figure 38: 2018: Market leaders – Reinsurance Brokers Commission (GHS’ m)
Overseas Reinsurance Premium Transfers The Commission has since the second half of 2017 earnestly Section (8) of the guidelines requires insurance/ implemented its new Reinsurance Guidelines. The main reinsurance companies to apply to the NIC for approval focus of the guidelines was the utilization of local capacity for all overseas reinsurance premium transfers. The and a significant reduction in premium flight. table below shows the various amounts that were approved for such purpose.
TABLE 10: OVERSEAS REINSURANCE PREMIUM TRANSFERS
Year GHS M Dollars (US $’M) Euros (€) Pounds (£) 2016 4.68 9.72 36,052 862 2017 13.50 14.07 267,419 16,601 2018 8.02 15.30 100,370 9,116
It may be observed from the table above that with the exception of the Dollar transfers, overseas premiums Furthermore, the Ghana Oil and Gas Insurance Pool dipped in 2018. This can be attributed to the strict (GOGIP) among others, is working really hard in the implementation of the Reinsurance Guidelines by the energy sector to ensure that more oil and gas risks are NIC. retained locally. However, the insurance industry lacks adequate resources to enable it make a meaningful impact. In addition, insurance companies are gradually increasing their retentions which inform total market capacities. The effect is that, if the value of a risk falls The Commission will continue in its efforts to grow the within the declared capacity for a class of business, and industry by ensuring that local capacity is adequately capacity really exists, it must be retained locally. utilized.
Market Capacity
Pursuant to section 2 of the Reinsurance Guidelines, market capacity for facultative business was determined as follows;
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TABLE 11 : MARKET CAPACITY FOR 2018
Class of Business Amount (GHS Million) Fire 1,000 Engineering 430 Marine - Cargo 180 Marine - Hull 100 Bonds 98
Gross Premium by Insurers
The table below summarises the Gross Written Premium of the non-life insurers from 2014 to 2018.
TABLE 12: GROSS PREMIUMS OF NON-LIFE COMPANIES (2014 - 2018)
COMPANY 2014 2015 2016 2017 2018 1 Activa 26,900,589 38,268,180 40,818,428 54,662,270 66,488,991 2 Allianz 26,624,368 21,858,529 27,183,279 28,527,388 37,825,445 3 Best* N/A N/A 4,918,453 9,459,606 12,957,194 4 Donewell 14,970,003 20,357,071 30,530,398 35,671,068 38,787,874 5 Enterprise 70,398,623 100,996,493 135,446,537 161,424,631 184,281,404 6 SUNU 15,696,407 21,294,662 31,468,150 36,230,501 40,490,892 7 GUA 22,348,675 31,536, 467 33,526,207 39,239,616 43,283,659 8 Glico General* 46,397,194 68,638,428 69,660,874 68,887,382 74,913,380 9 Imperial General* 5,571,696 6,508,200 9,239,314 11,900,101 11,395,119 10 Heritage Energy* 6,132,835 6,721,760 N/A 9,694,480 14,508,252 11 Hollard Insurance 63,307,559 77,273,501 84,094,685 89,561,886 96,819,681 12 Loyalty Insurance NA NA NA 1,530,893 4,692,506 Millennium 13 6,637,176 8,161,485 12,930,952 15,321,562 15,715,433 Insurance 14 Multi Insurance N/A N/A N/A 592,699 2,109,663 15 NSIA Ghana 5,428,571 7,948,287 10,998,238 13,324,794 11,779,523 16 Phoenix Insurance 25,178,385 34,770,287 46,278,553 47,384,649 49,107,974 17 Prime Insurance 5,306,379 12,158,093 29,389,566 29,553,090 25,806,596 18 Priority Insurance 2,597,458 3,872,158 8,940,836 12,134,536 14,404,216 Provident Insurance 19 10,462,289 14,952,407 20,364,746 21,419,866 22,541,818 Company Ltd. 20 Quality Insurance 19,356,125 23,090,012 30,946,446 34,424,205 36,829,535 21 RegencyNEM 12,476,495 17,807,025 28,733,674 25,970,254 26,566,246
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COMPANY 2014 2015 2016 2017 2018 22 Saham Insurance* 10,221,468 12,913,133 11,207,580 23,550,683 25,654,329 23 Serene Insurance* N/A N/A N/A N/A 923,190 24 SIC Insurance* 113,069,892 138,984,920 160,111,229 161,928,878 177,995,301 25 Star Assurance 71,228,815 91,584,258 119,710,991 129,593,555 122,789,335 26 Unique Insurance 5,983,230 7,856,036 11,167,973 11,064,722 11,681,173 27 Vanguard Assurance* 58,172,319 72,775,120 97,100,246 99,445,056 104,303,128 28 Wapic Insurance* 8,013,773 11,211,667 15,289,696 16,786,350 22,051,074
Totals 659,262,969 854,825,825 1,070,057,051 1,189,284,721 1,296,702,931 GOGIP N/A N/A N/A 167,821,399 301,731,460 Grand Total 659,262,969 854,825,825 1,070,057,051 1,357,106,120 1,598,434,391
Source: Data Submitted and signed by industry Players to the NIC
Notes: GOGIP: Ghana Oil and Gas Insurance Pool
The table below summarises the Gross Written Premium of the life insurers from 2014 to 2018.
TABLE 13: GROSS PREMIUMS OF LIFE COMPANIES (2014 - 2018)
COMPANY 2014 2015 2016 2017 2018 1 African Life N/A N/S N/S 1,655,483 N/S 2 Allianz Life N/A N/A N/A N/A 1,291,096 3 A-Plus N/A N/A 56,742 238,458 758,518 4 Avance Life 580,154 477,366 NA 83,765 NA 5 Beige Assured* 4,834,636 5,022,477 3,700,690 2,991,399 594,791 6 Donewell Life 8,241,894 7,705,518 7,134,666 8,234,241 12,316,591 7 Enterprise Life 156,244,014 200,438,627 235,311,893 297,598,693 360,200,326 8 Esich Life* 1,663,326 8,200,464 12,375,460 N/S N/S 9 First Insurance* N/A N/A N/A 1,264,649 2,245,452 10 Ghana Life 12,731,893 14,740,234 17,911,223 17,229,191 21,297,982 11 GUA Life 5,014,211 7,395,373 7,636,506 9,485,565 9,295,983 12 Glico Life* 59,654 64,926,000 82,733,226 98,755,553 109,017,523 GN Life 13 1,179,090 7,270,045 15,491,927 22,098,734 Assurance* N/A Metropolitan 14 26,344,298 29,924,473 31,595,032 39,705,069 15,296,295 Life* 15 Old Mutual 16,477,834 22,765,849 33,425,000 55,628,677 68,055,396
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COMPANY 2014 2015 2016 2017 2018 16 Phoenix Life 7,627,824 8,029,873 10,224,115 13,053,784 15,072,678 17 Prudential Life 11,722,469 20,720,285 33,814,009 52,599,824 81,453,941 18 Quality Life 8,480,291 8,972,136 9,424,765 10,942,633 13,878,968 19 Saham Life 2,550,358 4,563,663 5,999,595 7,911,156 12,249,036 20 SIC Life* 158,323,730 181,272,376 212,960,892 258,291,035 304,522,055 21 Starlife 68,191,153 82,520,271 105,620,200 151,208,606 209,294,512 22 UT Life 15,697,395 18,872,345 19,634,602 24,075,627 32,393,844 23 Vanguard Life* 16,210,947 18,126,941 22,009,604 15,637,977 17,815,096
TOTALS 580,590,473 705,853,361 858,781,522 1,082,083,312 1,309,148,817
Source: Data Submitted and signed by industry Players to the NIC
TABLE 14: PROFIT AFTER TAX FOR LIFE COMPANIES
Company 2014 2015 2016 2017 2018 1 African Life N/A N/A N/S (567,360) N/S 2 Allianz Life N/A N/A N/A N/A (9,810,786) 3 A-Plus N/A N/A (1,269,475) (1,404,546) 2,383,816 4 Avance Life (502,708 ) (1,775,344) N/S (1,004,932) N/S 5 Beige Assure (837,374) (2,493,520) (3,393,346) 1,221,774 (1,527,203) 6 Donewell Life 2,282,567 (69,383) 753,586 2,481,168 (11,778,363) 7 Enterprise Life 42,459,149 39,475,528 50,444,042 65,745,095 73,347,793 8 Esich Life * ( 2,455,077) (17,897,566) 9,697,271 N/S N/S 9 First Insurance* NA N/A N/A (4,193,395) (6,079,813) 10 Ghana Life 2,837,155 (103,179) (220,220) N/S 106,959 11 GUA Life 446,060 2,215,310 1,504,820 2,751,866 3,782,448 12 Glico Life* 4,844,515 4,708,648 26,749,215 57,322,549 5,078,849 13 GN Life* 1,574,831 1,027,207 5,534,381 5,765,985 6,226,937 14 Hollard Life* N/A N/A N/A N/A (4,030,691) Metropolitan 15 3,735,547 4,304,019 961,466 7,183,358 Life* 3,090,794 16 Old Mutual (16,877,203) (6,305,000) 3,686,001 (10,155,158) (13,175,460) 17 Phoenix Life (2,810,091) (571,815) 489,378 904,591 1,020,209 18 Prudential (5,706,222) (7,057,185) (3,122,725) (2,727,819) (1,861,297) 19 Quality Life 1,102,537 517,732 548,741 2,217,857 2,115,483
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Company 2014 2015 2016 2017 2018 20 Saham Life 5,866 111,583 332,681 687,114 (177,385) 21 SIC Life* 12,382,878 15,547,729 3,407,626 6420942 (2,322,650) 22 StarLife 8050762 6,054,695 10,922,050 14,014,015 24,774,822 23 Mi Life 786428 (3,980,163) (10,431,350) (7377161) (4,390,541) 24 Vanguard Life* (466,020) (2,800,994) 373524 4,472,928 839,598
Total By Year 50,853,600 30,908,304.00 98,237,141 143,758,871 93,162,678
Source: Data Submitted by licensed Life companies
TABLE 15: PROFIT AFTER TAX FOR NON- LIFE COMPANIES
Company 2014 2015 2016 2017 2018 1 Activa 781,634 2,575,779 2,582,380 3,260,328 4,757,688 2 Allianz (788,624) (2,512,678) (1,592,056) (9,295,478) (7,118,418) 3 Best Assurance* N/A N/A 439,553 2,610,535 2,234,302 4 Donewell 3,235,787 3,454,261 5,071,865 3,274,983 8,522,020 5 Enterprise 8,314,907 9,238,477 17,023,497 11,606,686 13,914,429 6 GN Insurance* N/A N/A N/A N/A 1,034,542 7 GUA 1,221,690 3,388,629 913,913 777,326 8,873,569 8 Glico General* (3,489,527) (1,492,335) 3,813,043 5,239,155 3,952,323 9 IEI / Heritage* (3,281,638) 249,233 N/S 2,497,072 2,762,132 10 Hollard 1,560,741 4,428,310 8,124,290 8,995,215 (4,269,719) 11 Imperial Gen.* 228,339 122,011 (1,254,015) 709,316 (342,185) 12 Loyalty Insurance N/A N/A N/A (1,509,356) (1,875,018) 13 Millennium* 601,201 (155,221) 1,828,426 3,160,245 5,176,334 14 Multi Insurance N/A N/A N/A (627,986) (159,447) 15 NSIA (3,623,029) 602,653 1,202,744 2,884,723 (1,230,826) 16 Phoenix 2,011,860 1,701,742 5,752,775 7,438,861 (729,199) 17 Prime (6,135,082) (889,655) 745,706 882,643 (12,002,626) 18 Priority 1,317,602 2,680,385 1,628,931 672,699 1,808,374 19 Provident 3,174,096 5,839,491 5,514,311 4,788,721 1,538,007 20 Quality 140,242 650,405 2,937,363 4,080,213 1,044,222 21 RegencyNem 2,135,023 529,167 2,725,976 1,265,804 833,632 22 Saham* 123,209 414,546 (4,290,683) 764,872 (9,450,912) N/A N/A N/A N/A 23 Serene (2,893,601) 24 SIC* (8,303,403) 10,035,509 3,646,458 10,220,143 67,252,634 25 Star Assurance 1,129,093 14,016,260 19,600,192 25,515,541 15,801,829
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Company 2014 2015 2016 2017 2018 26 Sunu 1,263,176 2,177,456 4,177,606 5,114,960 4,962,039 27 Unique (209,695) 17,762 4,238,056 1,529,932 1,713,853 28 Vanguard* 906,791 5,914,810 7,777,244 7,491,888 1,928,443 29 Wapic* 2,501,595 (2,190,904) (3,967,022) (2,109,009) 84,044 Total 5,145,876 61,338,759 88,640,553 101,240,032 108,122,466
Source: Data Submitted by licensed Non-Life companies
TABLE 16 : DISTRIBUTIONS CHANNELS FOR LIFE AND NON-LIFE SECTOR
2018 2017 2016 2015 Life(%) Non-Life(%) Life (%) Non-Life Life (%) Non-Life Life Non-Life 1 Direct Business 14 23 6 18 17 28 14 30 2 Brokers 6 40 7 40 8 35 9 36 Individual/Tied 3 64 30 67 36 62 32 63 30 Agents 4 Bancassurance 11 2 13 3 7 2 7 1 Other Corporate 5 1 3 0 2 1 1 1 1 Agents Telecom 6 1 0 2 0 2 0 2 0 Companies 7 Others 3 2 4 1 4 1 4 1
TABLE 17: PREMIUM INCOME FOR REINSURANCE COMPANIES (2013-2017)
Market Growth Market Year Life Non-Life Total share Rate % share Life Non-Life 2014 8,446,151 107,462,304 115,908,455 24% 93% 7% 2015 11,418,416 140,800,625 152,219,041 31% 92% 8% 2016 14,053,709 173,223,471 187,277,180 23% 92% 8% 2017 12,320,988 223,612,047 235,933,035 26% 95% 5% 2018 20,013,915 235,115,336 255,129,251 8% 92% 8%
Source: Data Submitted and signed by industry Players to the NIC Included in 2016 is a draft Annual data for Ghana Reinsurance
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TABLE 18: PREMIUM DISTRIBUTION BY CLASS OF BUSINESS (2015 -2018)
2015 2016 2017 2018 Non-Life Cont. Cont. Cont. Cont. per per per per Premiums Premiums Premiums Premiums Class Class Class Class % % % % Fire, Theft and 198,072,421 23.0 221,506,349 18.86 271,865,371 20.00 308,239,883 property 19.26
Motor 355,227,506 41.60 518,257,208 44.12 566,460,876 41.70 599,368,703 37.46
Personal Accident, 84,671,194 9.90 68,659,141 5.84 68,192,111 5.00 78,585,694 4.91 Health and Medical
Marine and Aviation 62,446,511 7.30 68,497,311 5.83 94,306,292 6.90 70,333,361 4.40
Liability 28,707,779 3.40 34,083,134 2.90 56,570,082 4.20 88,073,266 5.50 Bonds/Financial 41,777,399 54,654,670 4.65 47,497,394 3.50 56,633,109 3.54 Guarantees 4.90 Engineering 61,571,738 7.20 90,035,148 7.66 72,496,175 5.30 93,118,944 5.82 Other Approved 22,351,277 2.60 14,364,090 1.22 11,896,420 0.90 3,961,180 0.25 Products GOGIP 104,695,942 8.91 167,821,399 12.40 301,731,460 18.86
Total Non-Life 854,825,825 100 1,174,752,993 100 1,357,106,120 100 1,600,045,599 100 Premiums
2017 2018
Life
Premiums Cont. per Class % Premiums Cont. per Class % Universal Life & Investment 558,067,629.00 51.573 670,610,386.00 50.140 Group Life 89,909,629.00 8.309 108,615,160.00 8.121 Term 53,078,239.00 4.905 73,250,483 .00 5.477 Credit Life 47,136,848.00 4.356 60,580,506 .00 4.529 Whole Life & Endowment 280,818,363.00 25.952 355,495,568 .00 26.579 Dread Disease 59,087.00 0.005 61,647.79 0.005 Annuities 0.000 - 0.000 TPD 0.000 711,363.00 0.053 Other Approved Products 53,013,517.00 4.899 68,164,004.66 5.096
Total Life Premium 1,082,083,312 100 1,337,489,117 100
Source: Data Submitted and signed by industry Players to the NIC
*The Non-Life product lines have been realigned, thus separating Bonds/Financial Guarantees, Engineering and Liability from Personal Accident line of business.
| 57 | 2018 Annual Report National Insurance Commission
TABLE 19: BROKERAGE COMMISSION FOR 2014 – 2018 EXPRESSED IN CEDIS
INSURANCE BROKER 2014 2015 2016 2017 2018 Afro-Asian Reinsurance Brokers Ltd. N/A N/A N/A 261,943 239,598 AG & Associates* 220,709 326,800 N/S N/S 177,733 Akoto Risk Management 630,740 960,550 1,203,754 1,009,593 1,051,866 Alhet Insurance Brokers Ltd. N/A N/A N/A N/A 83,333 All Risks Consultancy Ltd. 721,166 763,677 879,618 919,670 1,173,971 AllStar Insurance Brokers Ltd. N/A 415,953 538,093 N/S 2,300,678 Allied Insurance Brokers Ltd. 134,279 75,579 110,051 N/S 67,437 Alpha Insurance Brokers Ltd. 474,200 554,134 701,662 785,042 769,525 Anchor premier Brokerage Ltd. N/A N/A N/A N/A N/S AP&L Insurance Brokers Ltd. N/A N/A N/A N/A 53,970 Apex Insurance 318,336 374,483 628,716 N/S 593,279 ARB Insurance Brokers Ltd. 264,395 494,090 800,266 884,536 1,162,248 ARK Insurance Brokers Ltd. 254,695 311,321 347,425 288,454 217,572 Arrowclass Insurance Brokers Ltd. 774,653 999,791 1,324,991 1,367,152 1,713,868 Ascoma Ghana Ltd. 1,225,130 1,134,591 1,401,987 1,423,377 2,980,139 Asterix Brokers Ltd. 192,507 129,207 197,194 N/S 342,748 Baobab Brokers Ltd. 36,185 103,687 188,203 172,598 201,642 Boaitey & Associates Insurance N/A 264,810 542,177 567,581 612,279 Brokers Ltd. Byllwych Insurance Brokers Ltd. N/A 3,694 N/S N/S N/S Cardinal Insurance Brokers Ltd. 193,340 363,280 273,582 N/S 257,380 Ceris International Ltd.* 801,849 577,793 N/S N/S 91,037 Claim Ltd. 511,109 483,781 340,547 N/S 472,269
Corporate Trust Insurance Brokers Ltd. 249,279 982,734 N/S 2,224,926 570,056
Crown Insurance Brokers Ltd. 1,611,389 1,874,542 2,089,394 2,833,688 2,152,409 Danniads Ltd. 1,367,910 1,369,603 1,458,624 1,168,501 1,166,477 Dezag Insurance Brokers Limited 48,958 171,380 190,253 157,629 196,724 Double D & M N/A 62,906 N/S N/S N/S Dynamic Insurance Brokers 402,873 461,250 444,832 N/S 685,809 Edward Mensah, Wood & Associates. 4,060,201 6,596,403 6,031,736 8,616,239 10,180,899 Eureka Insurance Brokers Ltd. N/A N/A N/S N/S N/S Felin Insurance Brokers Ltd. 427,251 592,832 905,780 1,320,831 1,344,120 First Anchor Risk Management* 1,195,548 1,478,209 1,424,594 1,654,219 1,645,763
| 58 | 2018 Annual Report National Insurance Commission
INSURANCE BROKER 2014 2015 2016 2017 2018 Functions Risk Management 27,657 144,511 202,619 389,085 575,185 GBL Insurance Brokers Ltd. N/A 3,694 23,270 29,680 53,357 Ghana International Brokers Ltd. N/A N/A N/S N/S N/S Global Impact Insurance Brokers Gh. 125,550 113,395 129,673 N/S 418,367 Ltd. Goldlink Insurance Brokers Ltd. 40,140 46,708 95,300 182,672 600,281 Goodwill Insurance Brokers Ltd. N/A 2,704 73,442 N/S 166,040 Horizon Insurance Brokers Ltd.* 2,143,062 2,721,601 2,749,823 3,710,621 3,908,574 I AM Loss Adjuster Ltd. N/A N/A N/S N/S 330,565 Ideal Insurance Brokers Limited N/A N/A N/S 221,284 510,833 Insurance Centre of Excellence 189,745 280,919 376,241 52,012 278,694 Insurance Consultancies Ltd. 204,661 193,349 295,054 258,048 255,389 Insurance Management Services Ltd. N/A N/A N/A 102,101 450,345 Insurance Solutions Ltd. 723,412 1,053,551 1,466,311 1,694,230 1,746,770 Irisk Management Limited N/A N/A N/A 1,074,519 959,514 Inter Africa Brokers Ltd. N/A N/A N/A N/A N/S J in G Insurance brokers N/A N/A N/A N/A 211,555 K&A Insurance Brokers Ltd. N/A N/A N/A N/A 279,800 KAV Insurance Brokers Ltd. 114,770 98,677 224,683 283,788 190,172 KEK Insurance Brokers Ltd. 10,909,117 13,265,860 14,921,591 19,421,932 23,211,981 KEK Reinsurance Brokers 2,507,054 3,293,701 3,678,527 5,260,810 5,171,176 Khols & Hols Insurance Brokers & N/A 23,301 272,412 N/S 1,273,460 Mang’t Consult. Liberty Insurance Brokers Limited 191,365 277,784 229,930 140,257 210,000 Lordship Insurance Brokers Ltd.* 470,040 531,091 669,372 706,408 847,157 M & G Insurance Brokers Ltd. 758,816 928,308 1,090,259 1,127,166 1,627,676 Merite Insurance Brokers Ltd. 63,166 83,574 143,009 N/S 243,505 Metrix Brokerage Ltd. 90,330 218,222 328,624 383,537 392,577 Midas Insurance Brokers Ltd. 1,474,030 1,802,416 2,054,216 2,008,625 2,238,841 Multinational Insurance Brokers Ltd. 65,266 211,036 362,427 399,966 144,065 NDL Insurance Consult 206,702 230,157 232,442 271,294 353,723 Novelty Insurance Brokers Ltd. N/A 144,950 152,198 N/S 114,367 OAK Insurance Brokers Ltd.* N/A 40,161 N/A 83,573 202,831 Pacific Insurance Brokers Ltd. N/A N/A N/A 75,152 258,426 Premier Brokers & Consultants 129,152 137,180 230, 211 300,525 N/S
| 59 | 2018 Annual Report National Insurance Commission
INSURANCE BROKER 2014 2015 2016 2017 2018 Progressive Insurance Services Ltd. 924,358 1,126,622 1,418,800 1,741,174 1,633,831 Prudent Insurance Brokers 324,768 270,249 302,425 390,333 384,936 Riscovery Ltd. 682,218 722,401 840,990 1,108,115 1,264,013
Risk Mgt. & Advisory Services Limited. 1,519,347 2,287,277 2,013,409 2,706,295 2,282,985
Risk Partners Limited N/A N/A N/A 81,020 849,933 Safeguard insurance Brokers Ltd. N/A 31,290 1,119,123 812,274 1,127,233 Safety Insurance Brokers Ltd. 2,034,626 2,557,076 3,019.91 4,478,395 6,271,973 Saviour Insurance Brokers & 10,561 194,240 119123 250,000 145,522 Consultants Shield Insurance Brokers 1,530,327 2,102,993 2,597,133 885,286 4,173,698 Strategic Insurance Consult Ltd. N/A N/A N/A 88,320 93,381 Supreme Trust Insurance Brokers Ltd. N/A N/A N/A 118,859 422,030 Trans-National Brokers Ltd. 470,585 420,156 473,070 578,283 593,311 Trinity Insurance Brokers Ltd. 88,699 112,900 158,523 178,101 165,155 Tri-Star Insurance Services Ltd. 2,095,376 2,612,467 2,766,881 2,135,184 2,815,092 UGroup Ltd. 36,115 43,652 62,325 N/S 62,992 Universal Insurance Consultants Ltd. N/A 101,896 93,446 96,417 109,946 Visal Insurance Brokers Ltd. N/A 1,160,472 1,244,939 1,962.00 2,212,224 Visal Reinsurance Brokers Ltd. N/A N/A N/A N/A 282,578 Willis Towers Watson 2,229,774 3,232,346 5,230,618 6,575,163 7,613,227 Worldwide Insurance Brokers Ltd. N/A N/A N/A 155,518 769,990
Total 48,623,536 64,722,972 73,144,221, 86,213,963 113,004,105 Earnings of top 10 cos. 30,640,273 40,544,266 45,138,831 57,963,253 68,438,413 Percentage of top 10 63% 62.60% 62% 67% 61%
| 60 | 2018 Annual Report National Insurance Commission
TABLE 20: TOTAL ASSETS FOR INSURANCE BROKERS AS AT 31ST DECEMBER 2018
The table below shows the asset contribution of brokerage firms as at the end of 2018. The top 10 firms contributed about 62% of this total.
COMPANY TOTAL ASSETS Afro-Asian Reinsurance Brokers Ltd. 2,379,365 AG & Associates 274,711 Akoto Risk Management 702,008 Alhet Insurance Brokers Ltd. 382,714 All Risks Consultancy Ltd. 484,533 AllStar Insurance Brokers Ltd. 2,916,055 Allied Insurance Brokers Ltd. 178,581 Alpha Insurance Brokers Ltd. 578,103 Anchor Premier Brokerage Ltd. N/S AP&L Insurance Brokers Ltd. 212,912 Apex Insurance Brokers Ltd. 863,965 ARB Insurance Brokers Ltd. 972,883 ARK Insurance Brokers Ltd. 397,454 Arrowclass Insurance Brokers Ltd. 1,686,063 Ascoma Ghana Ltd. 3,525,863 Asterix Brokers Ltd. 684,499 Baobab Brokers Ltd. 247,176 Boaitey & Associates Insurance Brokers Ltd. 582,755 Byllwych Insurance Brokers Ltd. N/S Cardinal Brokers Insurance Brokers Ltd. 474,683 Ceris International Ltd. N/S Claim Ltd. 533,209 Corporate Trust Insurance Brokers Ltd. 1,248,342 Crown Insurance Brokers Ltd. 2,016,823 Danniads Ltd. 1,271,270 Dezag Insurance Brokers Ltd. 188,991 Double D & M N/S Dynamic Insurance Brokers 285,718 Edward Mensah, Wood & Associates. 12,660,472 Eureka Insurance Brokers Ltd. N/S Felin Brokers 713,743
| 61 | 2018 Annual Report National Insurance Commission
COMPANY TOTAL ASSETS First Anchor 5,029,642 Functions Risk 1,075,384 GBL Insurance Brokers Ltd. 562,410 Ghana International Brokers Ltd. N/S Global Impact Insurance Brokers Gh. Ltd. 226,211 Goldlink Insurance Brokers Ltd. 431,679 Goodwill Insurance Brokers Ltd. 343,919 Horizon Insurance Brokers Ltd. 4,528,878 I AM Loss Adjuster Ltd. 609,108 Ideal Insurance Brokers Ltd. 727,569 Insurance Centre of Excellence 201,437 Insurance Consultancies Int. Ltd. 584,842 Insurance Management Services 718,630 Insurance Solutions 1,475,443 Irisk Management Ltd. 773,204 Inter Africa Brokers N/S J in G Insurance Brokers 604,395 K&A Insurance Brokers 391,102 KAV Insurance Brokers Ltd. 477,828 KEK Brokers Ltd 17,966,036 KEK Reinsurance Brokers Ltd 13,689,847 Khols & Hols Insurance Brokers & Mgt. Conslt. 728,899 Liberty Insurance Brokers Ltd. 762,961 Lordship Insurance Brokers Ltd. 885,459 M & G Insurance Brokers Ltd. 1,328,992 Merite Insurance Brokers Ltd. 458,556 Metrix Insurance Brokers Ltd. 710,479 Midas Insurance Brokers Ltd. 1,653,070 Multinational Insurance Brokers Ltd. 435,032 NDL Insurance Consult 302,621 Novelty Insurance Brokers Ltd. 287,330 OAK Insurance Brokers 637,139 Pacific Insurance Brokers Ltd. 382,684 Premier Insurance Brokers Ltd. N/S
| 62 | 2018 Annual Report National Insurance Commission
COMPANY TOTAL ASSETS Progressive Insurance Services Ltd. 861,836 Prudent Insurance Brokers Ltd. 249,871 Riscovery Ltd. 1,212,536 Risk Mgt. & Adv. Serv. Ltd. 5,191,669 Risk Partners Limited 276,976 Safeguard Insurance Brokers Ltd. 1,896,204 Safety Insurance Brokers Ltd. 7,162,365 Saviour Insurance Brokers & Consultancy Ltd. 189,004 Shield Insurance Brokers Ltd. 3,020,632 Strategic Insurance Consult Ltd. 344,778 Supreme Trust Insurance Brokers Ltd 354,065 Trans-National Brokers Ltd. 385,481 Trinity Insurance Brokers Ltd. 379,737 Tri-Star Insurance Services Ltd. 1,514,086 UGroup Ltd 84,054 Universal Insurance Consultants Ltd. 302,858 Visal Insurance Brokers Ltd. 1,009,611 Visal Reinsurance Brokers Ltd. 1,633,962 Willis Towers Watson 6,047,201 Worldwide Ins. Brokers 500,256
Totals 128,070,859 Assets of top 10 cos. 79,062,276 Percentage of top 10 62%
| 63 | 2018 Annual Report National Insurance Commission
Financial & Ratio Analysis
Introductory Remarks on ratio analysis This ratio analysis have been prepared for a five year period from 2014 to 2018. The companies marked * are companies that had not submitted their audited 2018 figures and we have therefore used their unaudited figures for 2018 to prepare the ratios. Companies whose ratios have been marked ** are firms that had not been licensed in the years in which the reports have been prepared. Firms with *** are newly licensed.
| 64 | 2018 Annual Report National Insurance Commission
Life Companies CHANGE IN POLICYHOLDER INFLOWS
This ratio measures growth or contraction of an insurer’s to the 2016 results. This statistic has reduced to 24% in total premium (both risk and savings components) 2018. Exceed Life, Hollard Life and Allianz Life’s results inflows from policyholders. The Average Policyholder are not consistent with the industry average because inflow for 2017 is 30%, a slight appreciation in the they are relatively new. Only Ghana Union experienced growth rate of Long Term Insurers Premium compared a negative growth rate at end of year 2018.
TABLE 21: CHANGE IN POLICYHOLDER INFLOW
Percentage (%) Company 2014 2015 2016 2017 2018 Average 35 22 24 30 24 1 Africa Life Assurance Company Limited N/A N/A N/A N/A N/A 2 Allianz Life Insurance Company Limited N/A N/A N/A N/A 0 3 Exceed Life Insurance Company Limited N/A N/A 1,079 319 198 4 Beige Assure* N/A 2 (27) (19) 8 5 Avance Life* N/A (18) N/A N/A N/s 6 Donewell Life Insurance Company Limited 1 (7) (8) 15 52 7 Enterprise Life Assurance Company Limited 26 25 16 25 24 8 Esich Life Assurance Company Limited N/A 511 51 N/S N/S 9 First Insurance Company Limited* N/A N/A N/A 409 74 10 Ghana Life Insurance Company 20 16 19 (3) 24 11 Ghana Union Assurance Life Company Limited (5) 45 27 21 (2) 12 Glico Life Insurance Company Limited* 10 8 27 20 10 13 GN Life Assurance Company Limited N/A N/A 553 127 N/S 14 Hollard Life Insurance Company Limited* N/A N/A N/A N/A 0 15 Metropolitan Life Insurance Ghana Limited* 22 10 5 24 11 16 Old Mutual Assurance Ghana Limited 7 38 48 65 21 17 Phoenix Life Assurance Company Limited 7 3 28 30 15 18 Prudential Life Insurance Ghana 113 73 64 53 69 19 Quality Life Assurance Company Limited 21 6 5 16 27 20 Saham Life Insurance Ghana Limited 186 78 29 33 34 21 SIC Life Insurance Company Limited* 24 15 18 21 18 22 StarLife Assurance Company Limited 28 21 28 43 37 23 Mi Life Insurance Company Limited 31 20 3 26 35 24 Vanguard Life Assurance Company Limited* 36 10 23.09 (34) 7
Companies suffixed with * had their 4th quarter result used
| 65 | 2018 Annual Report National Insurance Commission
POLICYHOLDER COVERAGE This ratio compares the equity and actuarial liabilities considered risky since the ability to absorb unexpected of a company. It is an indicator of how much capital the shocks may be impaired. The industry average of 139% company has after all technical provisions have been in 2017 showed an average improvement in the capacity considered. Generally, when the actuarial liabilities of long term insurers to meet unforeseen shocks. This are more than 300% of the company’s equity, it is has been improved further to 118% at end of year 2018.
TABLE 22: POLICYHOLDER COVERAGE
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 191 180 162 139 118
1 Africa Life Assurance Company Limited N/A N/A N/A 7 N/S
2 Allianz Life Insurance Company Limited N/A N/A N/A N/A 3.85
3 Exceed Life Insurance Company Limited N/A N/A 2 64 13.07
4 Beige Assure N/A (566) 141 16 26.27
5 Avance Life* N/A (814) N/A 20 N/A
6 Donewell Life Insurance Company Limited 14532 (15011) 179.52 161 128.14
7 Enterprise Life Assurance Company Limited 235 262 282 283 259.29
8 Esich Life Assurance Company Limited N/A (217) 125 N/A N/A
9 First Insurance Company Limited* N/A N/A N/A 1 5.54
10 Ghana Life Insurance Company 97 111 101 217 142.88
11 Ghana Union Assurance Life Company Limited 209 78 36 25 31.99
12 Glico Life Insurance Company Limited 125 147 125.54 84 104.6
13 GN Life Assurance Company Limited* N/A 5 8 27 N/A
14 Hollard Life Insurance Company Limited* N/A N/A N/A N/A 0.11
15 Metropolitan Life Insurance Ghana Limited* 392 336 376 329 319.59
16 Old Mutual Assurance Ghana Limited 199 128 134 217 384.18
17 Phoenix Life Assurance Company Limited 96 59 70 68 66.68
18 Prudential Life Insurance Ghana 25 50 58 71 125.08
19 Quality Life Assurance Company Limited 294 339 377 177 184.66
20 Saham Life Insurance Ghana Limited 31 6 10 18 27.02
21 SIC Life Insurance Company Limited* 539 570 702 667 (2518.76)
22 StarLife Assurance Company Limited 271 311 329 334 324.26
| 66 | 2018 Annual Report National Insurance Commission
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 191 180 162 139 118
23 Mi Life Insurance Company Limited 91 157 81 106 73.36
24 Vanguard Life Assurance Company Limited* 75 147 29 25 30.91
PROPORTION OF INVESTMENT TO ASSETS This is an asset quality ratio calculated as a ratio of a low investment assets ratio. The Life insurance sector total investments (including cash and cash equivalents) recorded an average of 79%. The higher the ratio, the to total assets. It seeks to establish the percentage better the quality of the company’s asset base. The ratios of the company’s assets that are in investments as for Vanguard Life, Mi Life, Ghana Life, Ghana Union Life, opposed to operational assets. Investment assets are First, Beige Assure, Allianz Life and Exceed are, however, generally kept to meet known liabilities and so a high below the industry average. investment assets ratio shows a positive position than
TABLE 23: PROPORTION OF INVESTMENT
Proportion of Investment Assets Percentage (%)
Company 2014 2015 2016 2017 2018
Average 78 85 84 81 79
1 Africa Life Assurance Company Limited N/A N/A N/A 90 N/S
2 Allianz Life Insurance Company Limited N/A N/A N/A N/A 69
3 Exceed Life Insurance Company Limited N/A N/A 38 64 64
4 Beige Assure N/A 66 87 98 11
5 Avance Life* N/A 76 N/A 54 N/S
6 Donewell Life Insurance Company Limited 91 95 88 85 89
7 Enterprise Life Assurance Company Limited 87 93 93 96 95
8 Esich Life Assurance Company Limited N/A 89 91 N/S N/S
9 First Insurance Company Limited N/A N/A N/A 64 67
10 Ghana Life Insurance Company 63 64 61 60 61
11 Ghana Union Assurance Life Company Limited 72 86 73 51 65
12 Glico Life Insurance Company Limited 80 87 93 94 94
13 GN Life Assurance Company Limited N/A 96 89 88 N/S
14 Hollard Life Insurance Company Limited N/A N/A N/A N/A 87
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Proportion of Investment Assets Percentage (%)
Company 2014 2015 2016 2017 2018
Average 78 85 84 81 79
15 Metropolitan Life Insurance Ghana Limited 93 98 98 98 95
16 Old Mutual Assurance Ghana Limited 80 92 96 95 98
17 Phoenix Life Assurance Company Limited 81 85 84 78 80
18 Prudential Life Insurance Ghana 35 89 90 92 94
19 Quality Life Assurance Company Limited 85 89 91 91 91
20 Saham Life Insurance Ghana Limited 65 94 92 90 89
21 SIC Life Insurance Company Limited* 80 86 92 93 90
22 StarLife Assurance Company Limited 85 96 94 92 91
23 Mi Life Insurance Company Limited 64 68 77 67 67
24 Vanguard Life Assurance Company Limited 53 46 73 64 75
POLICYHOLDER BENEFIT COVER This is a measure of investment adequacy with respect SIC Life and Beige Assure recorded ratios below 100%. to an insurer’s liabilities. It is calculated as a ratio of total This ratio helps to analyze the adequacy of a company’s investments to actuarial liabilities. It seeks to assess technical provisions and must be considered alongside the adequacy of the company’s investments to cover policyholder benefit cover to ensure a company is not the policyholder liabilities. The Life sector recorded an associated with the risk of under provisioning. Allianz average of 190% in 2018. The investment assets should, Life, First Insurance and Hollard Life only started trading as a minimum, cover policyholder benefits. A ratio of in 2018 with, generally, low actuarial liabilities. Their less than 100% means that the company does not have ratios, therefore, appear inconsistent with the industry enough investments to cover the policyholder liabilities. average.
TABLE 24: POLICYHOLDER BENEFIT COVER
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 150 150 259 236 190
1 Africa Life Assurance Company Limited N/A N/A N/A 1,456 N/S
2 Allianz Life Insurance Company Limited N/A N/A N/A N/A 1961
3 Exceed Life Insurance Company Limited N/A N/A 1,796 172 589
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Percentage (%)
Company 2014 2015 2016 2017 2018
Average 150 150 259 236 190
4 Beige Assure N/A N/A N/A N/A 57
5 Avance Life* N/A 106 N/A 480 N/A
6 Donewell Life Insurance Company Limited 96 99 142 146 192
7 Enterprise Life Assurance Company Limited 134 135 134 139 141
8 Esich Life Assurance Company Limited N/A 93 211 N/A N/A
9 First Insurance Company Limited N/A N/A N/A 6,133 1373
10 Ghana Life Insurance Company 146 135 135 102 118
11 Ghana Union Assurance Life Company Limited 115 204 283 261 274
12 Glico Life Insurance Company Limited 150 158 194 239 206
13 GN Life Assurance Company Limited N/A 2407 1353 439 N/A
14 Hollard Life Insurance Company Limited N/A N/A N/A N/A 104554
15 Metropolitan Life Insurance Ghana Limited 122 135 131 135 132
16 Old Mutual Assurance Ghana Limited 132 175 178 150 135
17 Phoenix Life Assurance Company Limited 183 256 234 232 245
18 Prudential Life Insurance Ghana 191 313 272 244 185
19 Quality Life Assurance Company Limited 117 119 117 144 142
20 Saham Life Insurance Ghana Limited 393 1883 1,059 611 463
21 SIC Life Insurance Company Limited* 99 103 109 108 89 22 StarLife Assurance Company Limited 123 134 131 127 127 23 Mi Life Insurance Company Limited 161 127 185 140 172 24 Vanguard Life Assurance Company Limited* 145 103 407 385 361
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RETENTION RATIO This ratio measures the proportion of the premiums retention rate can be attributed to the high savings that are not ceded to reinsurers. Retention among Life oriented Life policies, relative to risk businesses in the insurers in Ghana is generally high. SIC Life had the Life insurance market. highest retention ratio of 100%. Generally, this high
TABLE 25: RETENTION RATIO
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 95 91 91 92 91
1 Africa Life Assurance Company Limited N/A N/A N/A 74 N/A
2 Allianz Life Insurance Company Limited N/A N/A N/A N/A 88
3 Exceed Life Insurance Company Limited N/A N/A 100 100 93
4 Beige Assure N/A 90 84 89 99
5 Avance Life* N/A 100 N/A 100 N/A
6 Donewell Life Insurance Company Limited 99 83 82 84 98
7 Enterprise Life Assurance Company Limited 99 97 96 90 94
8 Esich Life Assurance Company Limited N/A 88 99 N/S N/S
9 First Insurance Company Limited N/A N/A N/A 92 90
10 Ghana Life Insurance Company 99 100 98 99 99
11 Ghana Union Assurance Life Company Limited 67 63 79 77 77
12 Glico Life Insurance Company Limited 99 98 98 98 99
13 GN Life Assurance Company Limited N/A 87 92 98 N/S
14 Hollard Life Insurance Company Limited N/A N/A N/A N/A 70
15 Metropolitan Life Insurance Ghana Limited 98 75 84 83 84
16 Old Mutual Assurance Ghana Limited 99 98 96 92 89
17 Phoenix Life Assurance Company Limited 97 80 82 88 85
18 Prudential Life Insurance Ghana 98 94 94 92 99
19 Quality Life Assurance Company Limited 98 96 97 98 97
20 Saham Life Insurance Ghana Limited 100 99 96 98 85
21 SIC Life Insurance Company Limited* 100 100 100 100 100
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Percentage (%)
Company 2014 2015 2016 2017 2018
Average 95 91 91 92 91
22 StarLife Assurance Company Limited 100 100 99 99 98
23 Mi Life Insurance Company Limited 90 88 63 95 97
24 Vanguard Life Assurance Company Limited* 83 89 91 87 86
INVESTMENT YIELD This ratio calculates the return on a company’s investment performances below the industry average investments. It seeks to measure the quality of a with GUA Life, Glico, Hollard Life, Saham Life and Mi Life company’s investment portfolio. It is the ratio of recording single digit investment yields. A significant investment income to total investment. The industry outlier of this statistic is the ratio for Beige Assure. average remained 15%. Twelve companies recorded
TABLE 26: INVESTMENT YIELD
Investment Yield Percentage (%)
Company 2014 2015 2016 2017 2018
Average 18 17 16 15 15
Africa Life Assurance Company Limited N/A N/A N/A 16 N/S
Allianz Life Insurance Company Limited N/A N/A N/A N/A 20
Exceed Life Insurance Company Limited N/A N/A 22 18 19
Beige Assure* N/A 30 12 5 53
Avance Life* N/A 23 N/S 4 N/S
Donewell Life Insurance Company Limited 22 21 12 18 13
Enterprise Life Assurance Company Limited 15 16 16 17 10
Esich Life Assurance Company Limited 10 16 N/S N/S
First Insurance Company Limited* N/A N/A N/A 16 10
Ghana Life Insurance Company 38 21 10 17 12
Ghana Union Assurance Life Company Limited 24 20 13 23 9
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Investment Yield Percentage (%)
Company 2014 2015 2016 2017 2018
Average 18 17 16 15 15
Glico Life Insurance Company Limited* 9 23 26 27 8
GN Life Assurance Company Limited* N/S 18 17 15 N/S
Hollard Life Insurance Company Limited* N/A N/A N/A N/A 5
Metropolitan Life Insurance Ghana Limited* 18 16 19 21 15
Old Mutual Assurance Ghana Limited 13 18 20 12 13
Phoenix Life Assurance Company Limited 12 13 22 24 17
Prudential Life Insurance Ghana 3 9 11 10 11
Quality Life Assurance Company Limited 21 22 24 19 18
Saham Life Insurance Ghana Limited 21 3 7 8 8
SIC Life Insurance Company Limited* 16 20 21 20 14
StarLife Assurance Company Limited 12 19 20 16 11
Mi Life Insurance Company Limited 27 21 3 5 6
Vanguard Life Assurance Company Limited* 25 1 14 11 18
RETURN ON EQUITY This ratio calculates the return on shareholders’ fund average has been reducing in the last 5 years and for the over a period, usually one year. A negative ratio implies first time over this period, recorded a negative ROE in the company experienced a loss or has a negative the year 2018. Nine Companies recorded losses after tax equity base or both during the period. The Industry in 2018.
TABLE 27: RETURN ON EQUITY
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 18 17 9 3 (8)
1 Africa Life Assurance Company Limited N/A N/A N/A (3) N/S
2 Allianz Life Insurance Company Limited N/A N/A N/A N/A (59)
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Percentage (%)
Company 2014 2015 2016 2017 2018
Average 18 17 9 3 (8)
3 Exceed Life Insurance Company Limited N/A N/A (10) (73) 19
4 Beige Assure* N/A (161) (48) 2 N/S
5 Avance Life* N/A (1,480) (37) N/S
6 Donewell Life Insurance Company Limited 1076 (31) 4 11 (36)
7 Enterprise Life Assurance Company Limited 51 39 42 43 39
8 Esich Life Assurance Company Limited N/S (168) 51 N/S N/S
9 First Insurance Company Limited* N/A N/A N/A (24) (39)
10 Ghana Life Insurance Company 21 (1) (1) (57) 1
11 Ghana Union Assurance Life Company Limited 34 63 11 16 24
12 Glico Life Insurance Company Limited* 8 8 30 39 3
13 GN Life Assurance Company Limited* N/A 6 23 20 28
14 Hollard Life Insurance Company Limited* N/A N/A N/A N/A (25)
15 Metropolitan Life Insurance Ghana Limited* 22 18 4 23 9
16 Old Mutual Assurance Ghana Limited (60) (75) 6 (18) (31)
17 Phoenix Life Assurance Company Limited (34) (4) 3 5 6
18 Prudential Life Insurance Ghana (15) (23) (8) (5) (4)
19 Quality Life Assurance Company Limited 17 8 8 13 11
20 Saham Life Insurance Ghana Limited 0 1 2 5 (1)
21 SIC Life Insurance Company Limited* 25 26 6 9 (114)
22 StarLife Assurance Company Limited 18 12 16 16 21
23 Mi Life Insurance Company Limited 5 (28) (31) (27) (10)
24 Vanguard Life Assurance Company Limited* (8) (95) 2.4 24 4
| 73 | 2018 Annual Report National Insurance Commission
RETURN ON ASSET This is a ratio of profit after tax to total assets. It seeks on this ratio has been experiencing a dip for the past to measure the efficiency with which management three years. Though total assets have been increasing, utilizes the assets of the company to generate returns profits after tax have not been increasing at a similar for its various stakeholders. The market performance rate leading to the reduction in the ratio.
TABLE 28: RETURN ON ASSETS
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 6.00 (0.82) 0.05 (1.08) 0.0
1 Africa Life Assurance Company Limited N/A N/A N/A (3) N/S 2 Allianz Life Insurance Company Limited N/A N/A N/A N/S -0.5 3 Exceed Life Insurance Company Limited N/A N/A 0 0 0.2 4 Beige Assure (9) (32) 0 0 0.0 5 Avance Life* N/A (131) N/S (21) N/S 6 Donewell Life Insurance Company Limited 7 0 0 0 (0.1) 7 Enterprise Life Assurance Company Limited 14 10 0 0 0.1 8 Esich Life Assurance Company Limited N/A (73) 1 N/A N/A 9 First Insurance Company Limited* N/A N/A N/A 0 (0.3) 10 Ghana Life Insurance Company 9 0 0 0 0.0 11 Ghana Union Assurance Life Company Limited 10 34 0 0 0.2 12 Glico Life Insurance Company Limited* 3 3 0 0 0.0 13 GN Life Assurance Company Limited 4 0 0 0.1 14 Hollard Life Insurance Company Limited* N/A N/A N/A N/A (0.1) 15 Metropolitan Life Insurance Ghana Limited* 4 4 0 0 0.0 16 Old Mutual Assurance Ghana Limited (18) (31) 0 0 0.0 17 Phoenix Life Assurance Company Limited (16) (2) 0 0 0.0 18 Prudential Life Insurance Ghana (11) (13) 0 0 0.0 19 Quality Life Assurance Company Limited 4 2 0 0 0.0 20 Saham Life Insurance Ghana Limited 0 1 0 0 0.0 21 SIC Life Insurance Company Limited* 4 4 0 1 0.0 22 StarLife Assurance Company Limited 5 3 0 0 0.0 23 Mi Life Insurance Company Limited 2 (10) 0 0 (0.1) 24 Vanguard Life Assurance Company Limited* (4) (29) 0 0 0.0
| 74 | 2018 Annual Report National Insurance Commission
EXPENSE RATIO This ratio calculates actual management expenses catering for expenses and not necessarily building up incurred as a percentage of total net inflows received policyholders’ benefit reserves. For the new entrants, from policyholders. It serves as a check on efficiency. Hollard Life and Allianz Life, their expense ratios are The international industry acceptable ratio should not expectedly high as a result of the low volumes of exceed 40%. A high ratio indicates inefficiency on the business written and the high start-up and overhead part of the insurance company in handling its activities costs. and may also suggest most of the premium received is
TABLE 29: EXPENSE RATIO
Percentage (%) Company 2014 2015 2016 2017 2018 Average 61 63 63 59 66 Africa Life Assurance Company Limited N/A N/A N/A 204 N/S Allianz Life Insurance Company Limited N/A N/A N/A N/A 1121 Exceed Life Insurance Company Limited N/A N/A 4,358 3630 574 Beige Assure N/A 97 108 148 154 Avance Life* N/A 326 N/A 1529 N/A Donewell Life Insurance Company Limited 51 59 62 98 142 Enterprise Life Assurance Company Limited 36 37 36 35 35 Esich Life Assurance Company Limited N/A 350 76 N/A N/A First Insurance Company Limited* N/A N/A N/A 621 430 Ghana Life Insurance Company 62 67 58 68 47 Ghana Union Assurance Life Company Limited 80 60 70 74 93 Glico Life Insurance Company Limited* 29 44 33 34 31 GN Life Assurance Company Limited N/A 265 80 52 N/S Hollard Life Insurance Company Limited* N/A N/A N/A N/A 2066 Metropolitan Life Insurance Ghana Limited* 41 47 53 48 49 Old Mutual Assurance Ghana Limited 95 113 77 58 54 Phoenix Life Assurance Company Limited 67 56 75 66 64 Prudential Life Insurance Ghana 136 134 93 77 67 Quality Life Assurance Company Limited 41 42 47 45 46 Saham Life Insurance Ghana Limited 102 88 79 71 70 SIC Life Insurance Company Limited* 23 27 28 29 26 StarLife Assurance Company Limited 37 45 43 38 35 Mi Life Insurance Company Limited 71 73 104 85 81
| 75 | 2018 Annual Report National Insurance Commission
Percentage (%) Company 2014 2015 2016 2017 2018 Average 61 63 63 59 66 Vanguard Life Assurance Company Limited* 51 60 54 68 65
CHANGE IN CAPITAL AND SURPLUS This ratio measures the growth or decline in the equity in unrealized gains or losses, changes in actuarial of an insurer over the previous year. It is the general liabilities and regulatory enforcements to inject capital. measure of improvements or deterioration of an The Industry average for this ratio fell once again from insurer’s financial position. Some of the factors that can 19% in 2017 to 7% in 2018. This is consistent with the fall affect this ratio are profits or losses after tax, change in return on equity previously discussed.
TABLE 30: CHANGE IN CAPITAL AND SURPLUS
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 180 34 57 19 7 1 Africa Life Assurance Company Limited N/A N/A N/A (3) N/A 2 Allianz Life Insurance Company Limited N/A N/A N/A N/A (37) 3 Exceed Life Insurance Company Limited N/A N/A 43 (27) 40 4 Beige Assure N/A (269) (556) 758 (36) 5 Avance Life* N/A (104) N/S (758) N/S 6 Donewell Life Insurance Company Limited (102) (207) (8595) 19 50 7 Enterprise Life Assurance Company Limited 42 21 19 27 24 8 Esich Life Assurance Company Limited N/A (246) (279) N/A N/A 9 First Insurance Company Limited* N/A N/A N/A 0 (9) 10 Ghana Life Insurance Company 253 7 21 (28) 72 11 Ghana Union Assurance Life Company Limited (21) 167 463 14 (8) 12 Glico Life Insurance Company Limited* 5 5 43 68 24 13 GN Life Assurance Company Limited* N/A 6 31 24 14 Hollard Life Insurance Company Limited* N/A N/A N/A N/A (20) 15 Metropolitan Life Insurance Ghana Limited* 75 36 4 29 10
| 76 | 2018 Annual Report National Insurance Commission
Percentage (%)
Company 2014 2015 2016 2017 2018
Average 180 34 57 19 7 16 Old Mutual Assurance Ghana Limited 749 102 7 (15) (24) 17 Phoenix Life Assurance Company Limited 242 83 3 7 6 18 Prudential Life Insurance Ghana 959 (19) 28 32 (4) 19 Quality Life Assurance Company Limited 42 3 5 144 12 20 Saham Life Insurance Ghana Limited 0 782 2 5 (1) 21 SIC Life Insurance Company Limited* 30 21 (3) 14 (52) 22 StarLife Assurance Company Limited 185 17 27 31 34 23 Mi Life Insurance Company Limited 41 (8) 137 (20) 60 24 Vanguard Life Assurance Company Limited* 0.1 (49) 426 31 4
| 77 | 2018 Annual Report National Insurance Commission
TABLE 31: STATEMENT OF ASSETS - LIFE
2018 2017 GHS GHS 1 Cash 215,617,057 168,608,080
2. Investments:
Government of Ghana Securities 451,981,988 265,077,379 Bank of Ghana Securities 437,465,378 232,962,733 Statutory Deposits 24,352,064 26,573,381 Term deposits held at a licensed bank 523,847,383 818,554,536 Other term deposits 126,378,652 263,670,346 Corporate Debt 10,787,447 5,288,822 Securities listed on Ghana Stock Exchange 152,471,086 122,472,918 Other Securities 133,020,399 46,574,929 Equity backed mutual funds 1,203,539 91,593 Money market mutual funds 54,189,485 43,136,443 Land & building held as investment 628,050,041 573,491,907 Investments in, and subordinated loans to, connected persons 41,618,701 70,403,933 Other Investments 34,223,081 11,697,535
Total Investments 2,619,589,244 2,479,996,455
3. Receivables & Prepayments Policy Loans 65,494,941 54,196,426 Premium Debtors 15,296,070 13,304,155 Staff Loans and Advances 2,376,230 2,252,833 Due from reinsurers less than 3 months old 198,718 - Due from reinsurers more than 3 months old - - Due from other Insurers 55,490 9,682 Due from Agents and Brokers 1,560,464 1,472,303 Due from Connected Persons 15,492,749 9,326,713 Reinsurance Share of Insurance liabilities 2,129,627 1,311,090 Deferred Tax Assets 19,868,302 9,614,942 Other Receivables 52,125,617 43,527,325
Total Receivables 174,598,207 135,015,469
| 78 | 2018 Annual Report National Insurance Commission
Land & Buildings occupied by Insurer for own use 52,413,018 50,397,351 Plant and Equipment 4,034,431 3,273,493 Computer Hardware and Software 15,307,723 11,829,804 Motor Vehicles 17,921,875 16,778,753 Furniture and Fittings 11,625,843 11,068,690 Other Assets 6,768,892 9,923,855
Total Property, Plant & Equipment 108,071,783 103,271,947 5 Intangible Assets Goodwill, unless otherwise deducted 28,000 Other assets shown as intangible assets 4,930,598 2,622,399
Total intangible assets 4,930,598 2,650,399 6 Other Assets Capitalised research and development costs - - Deferred acquisition costs 611,205 - Corporate stationery - 445,983 Other assets not included above - - Total Other Assets 611,205 445,983
TOTAL ASSETS 3,123,418,095 2,889,988,333
| 79 | 2018 Annual Report National Insurance Commission
TABLE 32: STATEMENT OF EQUITY AND LIABILITIES FOR LIFE INSURERS
2018 2017 1 Technical Provisions GHS GHS Actuarial Liabilities 2,041,210,545 1,764,214,748
Investment Contracts Liabilities 18,099,524 10,123,043
Other Provisions 34,629 214,074 Total Technical Provisions 2,059,344,698 1,774,551,865 2 Payables Bank Overdrafts and Loans 6,362,529 7,013,312 Due to Reinsurers 3,879,923 3,574,120 Due to Agents and Brokers 1,552,359 2,805,480 Taxation 2,194,816 3,874,154 Deferred Taxation 53,976,508 50,343,021 Due to Related Parties 6,883,129 10,878,593 Other Accruals & Payables 145,928,271 98,295,082 Total Payables 220,777,534 176,783,762 3 Long Term Liabilities Bank Loans 392,150
Unsecured Subordinated Debts More than 4 years to maturity - 51,779,242 Other Borrowings - 70,849 Total Long Term Liabilities - 52,242,241
4 Equity Paid Up Ordinary Shares 593,555,525 532,904,993 Contingency Reserves 77,542,171 57,463,941 Revaluation Reserves (Owned Land & Building) 21,388,921 32,135,554 Revaluation Reserves (Investments excluding items to be 25,536,903 24,359,316 deducted from core capital) Revaluation Reserves (Others) 2,484,097 3,415,057 8,081,294 1,306,208 Retained Earnings, as at end of previous financial year 82,358,559 117,085,712 Current year net earnings/deficit 33,155,151 85,464,527 Others (806,759) 32,275,159 Total Equity 843,295,862 886,410,466
TOTAL LIABILITIES AND EQUITY 3,123,418,095 2,889,988,334
| 80 | 2018 Annual Report National Insurance Commission
Non-Life Companies
CHANGES IN GROSS WRITTEN PREMIUMS This ratio measures growth or contraction in the General, Imperial General, NSIA Ghana, Prime Insurance company’s gross premium relative to the prior year. and Star Assurance experienced varying degrees of In 2018 the industry recorded a 10% growth, a fairly contraction in growth. flat growth rate compared to 2017’s rate of 11%. Glico
TABLE 33: CHANGES IN GROSS WRITTEN PREMIUMS
Percentage (%)
Year: 2014 2015 2016 2017 2018 Industry Average: 13 32 28 11 10 1 Activa International Insurance Co. Limited 24 42 7 34 22 2 Allianz Insurance Company Limited 60 (18) 24 5 33 3 Best Assurance Company Limited* N/A N/A 0 0 37 4 Donewell Insurance Company Limited 3 36 50 17 9 5 Enterprise Insurance Company Limited 15 43 34 19 14 6 Ghana Union Assurance Company Limited 2 41 6 17 10 7 Glico General Insurance Company Limited* 17 48 1 18 (6) 8 GN Insurance Company Limited* N/A N/A N/A N/A N/S 9 Heritage Insurance Company Limited* N/S N/S N/S 16 50 10 Hollard Insurance Company Limited 17 22 9 7 8 11 Imperial General Insurance Co. Limited* 420 20 42 29 (4) 12 Loyalty Insurance Company Limited N/A N/A N/A N/S 207 13 Millennium Insurance Company Ltd* (9) 23 58 15 3 14 Multi Insurance Company Limited N/A N/A N/A 0 26 15 NSIA Ghana Insurance Company (33) 46 38 21 (12) 16 Phoenix Insurance Company 4 38 33 2 4 17 Prime Insurance Company Limited 148 147 142 1 (13)
18 Priority Insurance Company Limited 22 118 49 36 19 19 Provident Insurance Company Limited 7 43 36 5 3 20 Quality Insurance Company Limited 13 19 34 11 7 21 RegencyNEM Insurance Ghana Ltd 49 43 61 (10) 2 22 Saham Insurance Company Limited* 23 26 (13) 110 9
| 81 | 2018 Annual Report National Insurance Commission
Percentage (%)
Year: 2014 2015 2016 2017 2018 Industry Average: 13 32 28 11 10 23 Serene Insurance Company Limited N/A N/A N/A N/A 0 24 SIC Insurance Company Limited* 1 20 15 1 10
25 Star Assurance Company Limited 25 29 31 8 (5)
26 Sunu Assurance Ghana Limited 24 36 48 15 12 27 Unique Insurance Company Ltd 5 32 42 (1) 6 28 Vanguard Assurance Company Limited* 10 25 33 2 5 29 Wapic Insurance (Gh.) Limited* (15) 19 36 10 31
Reinsurers: 1 Ghana Reinsurance Company Limited 21 34 13 20 7 2 Mainstream Reinsurance Company Limited (4) 20 35 31 18 3 GN Reinsurance* - 1024 132 37 2
| 82 | 2018 Annual Report National Insurance Commission
CHANGES IN NET WRITTEN PREMIUM This measures growth or contraction in the company’s rate indicates significant changes in the company’s current net premiums over the previous year’s net reinsurance program. Thus, any ratio greater or less premiums. A high growth/contraction rate that does than ±33% reflects significant changes in reinsurance not positively correlate to the gross premium growth policy or volatility in premiums.
TABLE 34: CHANGES IN NET WRITTEN PREMIUM
Percentage (%)
Year: 2014 2015 2016 2017 2018 Industry Average: 13 43 41 12 15 Non-Life Companies: 1 Activa International Insurance Co. Limited 29 15 31 17 (1) 2 Allianz Insurance Company Limited 54 36 18 44 70 3 Best Assurance Company Limited* N/A N/A 0 0 24 4 Donewell Insurance Company Limited 20 29 51 8 - 5 Enterprise Insurance Company Limited 14 45 30 12 12 6 Ghana Union Assurance Company Limited (7) 46 36 25 30 7 Glico General Insurance Company Limited* (25) 114 (9) (13) 24 8 GN Insurance Company Limited* N/A N/A N/A N/A N/S 9 Heritage Insurance Company Limited* N/S N/S N/S 20 59 10 Hollard Insurance Company Limited (2) 68 22 (1) 1 11 Imperial General Insurance Co. Limited* 361 22 53 40 (7) 12 Loyalty Insurance Company Limited N/A N/A N/A - 87 13 Millennium Insurance Company Ltd* (15) 24 47 22 2 14 Multi Insurance Company Limited 17 15 NSIA Ghana Insurance Company (34) 27 32 14 (4) 16 Phoenix Insurance Company - 34 22 16 3 17 Prime Insurance Company Limited 88 197 156 4 (6) 18 Priority Insurance Company Limited 28 46 156 30 22 19 Provident Insurance Company Limited 6 57 29 13 6 20 Quality Insurance Company Limited 6 22 36 8 1 21 RegencyNEM Insurance Ghana Ltd 42 36 87 (7) - 22 Saham Insurance Company Limited* 44 5 (22) 93* - 23 Serene Insurance Company Limited N/A N/A N/A N/A N/A 24 SIC Insurance Company Limited* (11) (8) 40 4* 13
| 83 | 2018 Annual Report National Insurance Commission
25 Star Assurance Company Limited 14 37 33 11 3 26 Sunu Assurance Ghana Limited 23 30 49 16 10 27 Unique Insurance Company Ltd (5) 62 32 (3) 12 28 Vanguard Assurance Company Limited* 9 14 22 4* 8 29 Wapic Insurance (Gh.) Limited* (11) 17 28 7 28
Reinsurers: 1 Ghana Reinsurance Company Limited 41 10 21 37 6 2 Mainstream Reinsurance Company Limited (14) 30 19 61 51 3 GN Reinsurance* N/A 706 115 66 10
NET INSURANCE RISK RATIO This ratio measures the ability or capacity of the improvement in the Companies potential capacity to insurer’s capital and surplus to absorb unforeseen absorb unforeseen losses. Allianz Insurance, Enterprise shocks. It is calculated as a ratio of Net Written Premium Insurance, SUNU Assurance, Hollard Insurance, Phoenix to Equity. The higher the ratio, the less conservative the Insurance, Prime Insurance, RegencyNem Insurance, insurer, and hence, the greater the potential risk that, Saham and Vanguard Assurance appear quite aggressive the insurer cannot absorb shocks/losses. In 2018, the with higher level of risks relative to their capital or equity ratio reduced to 80% from 81% in 2017 showing a slight base.
TABLE 35: NET INSURANCE RISK
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 104 98 92 81 80 Non-Life Companies: 1 Activa International Insurance Co. Limited 89 56 64 57 48 2 Allianz Insurance Company Limited 80 155 80 89 256 3 Best Assurance Company Limited* N/A N/A 24 47* 63 4 Donewell Insurance Company Limited 116 101 127 123 92 5 Enterprise Insurance Company Limited 124 144 168 153 128 6 Ghana Union Assurance Company Limited 12 27 28 23* 36 7 Glico General Insurance Company Limited* 111 205 102 67* 96 8 GN Insurance Company Limited* N/A N/A N/A N/A 8 9 Heritage Insurance Company Limited* N/S N/S N/S 72 76 10 Hollard Insurance Company Limited 151 129 125 98 110 11 Imperial General Insurance Co. Limited* 33 49 86 68 65 12 Loyalty Insurance Company Limited N/A N/A N/A 10 19 13 Millennium Insurance Company Ltd* 63 79 56 61 49
| 84 | 2018 Annual Report National Insurance Commission
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 104 98 92 81 80 Non-Life Companies: 14 Multi Insurance Company Limited N/A N/A N/A N/A 4 15 NSIA Ghana Insurance Company 68 81 33 30 30 16 Phoenix Insurance Company 72 99 103 100 111 17 Prime Insurance Company Limited (117) 68 173 169 143 18 Priority Insurance Company Limited 23 27 37 48 54 19 Provident Insurance Company Limited 54 32 39 41 44 20 Quality Insurance Company Limited 153 143 83 78 79 21 RegencyNEM Insurance Ghana Ltd 185 230 209 149 141 22 Saham Insurance Company Limited* 125 45 49 72* 137 23 Serene Insurance Company Limited N/A N/A N/A N/A 5 24 SIC Insurance Company Limited* 95 83 119 99* 48 25 Star Assurance Company Limited 78 84 87 41 40 26 Sunu Assurance Ghana Limited 157 135 120 124 131 27 Unique Insurance Company Ltd 146 80 62 55 57 28 Vanguard Assurance Company Limited* 230 160 166 152* 160 29 Wapic Insurance (Gh.) Limited* 74 48 77 85 83 Reinsurers: 1 Ghana Reinsurance Company Limited 41 44 48 58 50 2 Mainstream Reinsurance Company Limited 63 38 32 47 45 3 GN Reinsurance* 1 12 15 24 24
| 85 | 2018 Annual Report National Insurance Commission
GROSS INSURANCE RISK RATIO This ratio is similar to the Net Risk Ratio with Net Written Glico General, Quality Insurance and WAPIC also appear Premium replaced with Gross Written Premium. The quite aggressive even though this has been managed quite aggressive insurers appear to be the same as those through reinsurance as evidenced by the relatively with high Net Insurance Risk ratios. Donewell Insurance, lower net retentions.
TABLE 36: GROSS INSURANCE RISK
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 168 159 142 121 125 Non-Life Companies: 1 Activa International Insurance Co. Limited 278 216 200 206 214 2 Allianz Insurance Company Limited 316 370 203 165 371 3 Best Assurance Company Limited* N/A N/A 32 53* 78 4 Donewell Insurance Company Limited 137 126 156 164 132 5 Enterprise Insurance Company Limited 191 219 264 257 219 6 Ghana Union Assurance Company Limited 36 78 64 50* 68 7 Glico General Insurance Company Limited* 305 389 216 186* 178 8 GN Insurance Company Limited* N/A N/A N/A N/A 14 9 Heritage Insurance Company Limited* N/S N/S N/S 90 89 10 Hollard Insurance Company Limited 422 261 224 190 231 11 Imperial General Insurance Co. Limited* 45 64 104 75 74 12 Loyalty Insurance Company Limited N/A N/A N/A 11 33 13 Millennium Insurance Company Ltd* 79 99 76 76 62 14 Multi Insurance Company Limited N/A N/A N/A 4 4 15 NSIA Ghana Insurance Company 80 110 47 46 42 16 Phoenix Insurance Company 100 141 160 137 154 17 Prime Insurance Company Limited (184) 88 215 203 160 18 Priority Insurance Company Limited 27 33 40 55 59 19 Provident Insurance Company Limited 73 40 51 50 53 20 Quality Insurance Company Limited 193 175 101 97 104 21 RegencyNEM Insurance Ghana Ltd 228 297 232 162 157 22 Saham Insurance Company Limited* 187 82 101 160* 369 23 Serene Insurance Company Limited N/A N/A N/A N/A 6 24 SIC Insurance Company Limited* 152 171 202 162* 77 25 Star Assurance Company Limited 133 136 138 64 56
| 86 | 2018 Annual Report National Insurance Commission
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 168 159 142 121 125 Non-Life Companies: 26 Sunu Assurance Ghana Limited 186 167 146 150 161 27 Unique Insurance Company Ltd 200 88 74 66 65 28 Vanguard Assurance Company Limited* 307 235 266 240* 243 29 Wapic Insurance (Gh.) Limited* 81 63 109 140 141
Reinsurers: 1 Ghana Reinsurance Company Limited 23 30 60 58 57 2 Mainstream Reinsurance Company Limited 73 41 37 47 52 3 GN Reinsurance* 1 17 28 34 32
CHANGE IN CAPITAL AND SURPLUS This ratio measures the growth or decline in the equity Technical Provision of policies and injection of capital. of the insurer over the previous year. It is the general In 2018, the ratio reduced from 32% (in 2017) to 23%. The measure of improvement or deterioration of an insurer’s acceptable threshold for this ratio is between 0 to 33%. financial position. Some of the factors that could affect The nature, scale, complexity as well as the risk appetite this ratio are after tax profits or losses, changes in level of the insurer’s business is a useful indicator of the unrealized gains or losses on assets, or changes in the level of capital required.
TABLE 37: CHANGE IN CAPITAL & SURPLUS
Percentage (%)
Year: 2014 2015 2016 2017 2018
Industry Average: 76 48 45 32 23 Non-Life Companies: 1 Activa International Insurance Co. Limited 35 83 16 30 17 2 Allianz Insurance Company Limited 366 (30) 127 29 (41) 3 Best Assurance Company Limited* N/A N/A 0 0 15 4 Donewell Insurance Company Limited 42 44 21 12 35 5 Enterprise Insurance Company Limited 9 25 11 23 34 6 Ghana Union Assurance Company Limited 67 (34) 30 54 (19) 7 Glico General Insurance Company Limited* (2) 16 83 13 11 8 GN Insurance Company Limited* N/A N/A N/A N/A N/S 9 Heritage Insurance Company Limited* N/S N/S N/S 244 108
| 87 | 2018 Annual Report National Insurance Commission
10 Hollard Insurance Company Limited 15 97 26 26 (11) 11 Imperial General Insurance Co. Limited* 3 1 (12) 78 (2) 12 Loyalty Insurance Company Limited N/A N/A N/A 0 5 13 Millennium Insurance Company Ltd* 8 (2) 106 30 26 14 Multi Insurance Company Limited N/A N/A N/A 0 5 15 NSIA Ghana Insurance Company 27 6 227 24 (4) 16 Phoenix Insurance Company 265 8 17 20 (8) 17 Prime Insurance Company Limited (177) (615) 6 6 11 18 Priority Insurance Company Limited 16 29 87 0 8 19 Provident Insurance Company Limited 64 185 5 8 0 20 Quality Insurance Company Limited 203 31 153 16 0 21 RegencyNEM Insurance Ghana Ltd 53 10 96 30 5 22 Saham Insurance Company Limited* 133 191 (28) 32 (976) 23 Serene Insurance Company Limited N/A N/A N/A N/A 0 24 SIC Insurance Company Limited* 2 9 (2) 23 127 25 Star Assurance Company Limited 66 26 29 134 7 26 Sunu Assurance Ghana Limited 18 52 68 12 4 27 Unique Insurance Company Ltd 76 198 7 10 8 28 Vanguard Assurance Company Limited* 4 64 18 13 3 29 Wapic Insurance (Gh.) Limited* 293 82 (21) (15) 30 Reinsurers: 1 Ghana Reinsurance Company Limited 23 3 9 20 12 2 Mainstream Reinsurance Company Limited 30 216 42 10 17 3 GN Reinsurance* - (12) 18 12 7
| 88 | 2018 Annual Report National Insurance Commission
CLAIMS RESERVE RATIO This ratio is calculated as the Provision for Outstanding Provision. The internationally acceptable range for this Claims (including the IBNR) divided by the Net Earned ratio is between 25% and 50%. In 2017 the average Premiums. It compares the relationship of provisions ratio increased to 40% from 32% in 2016 and further for outstanding claims to net earned premiums, to increased to 52% in 2018. Best, Donewell, Heritage, determine whether or not the company is adequately Imperial, Prime, RegencyNem, Quality and Vanguard reserving for claims in process. It is therefore an finished the year with claims reserve ratios below the indication of the adequacy of the Outstanding Claims lower threshold of 25%.
TABLE 38: CLAIMS RESERVE RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 24 36 32 40 52 Non-Life Companies: 1 Activa International Insurance Co. Limited 109 308 60 81 66 2 Allianz Insurance Company Limited 12 63 6 27 41 3 Best Assurance Company Limited* N/A N/A 4 5 14 4 Donewell Insurance Company Limited 35 23 19 19 21 5 Enterprise Insurance Company Limited 14 70 21 31 36 6 Equity Assurance Company Limited 21 26 10 19 42 7 Ghana Union Assurance Company Limited 67 290 176 132 118 8 Glico General Insurance Company Limited* 42 32 44 62 47 9 GN Insurance Company Limited* N/A N/A N/A N/A 53 10 Heritage Insurance Company Limited* N/S N/S N/S 9 10 11 Hollard Insurance Company Limited 42 149 75 93 138 12 Imperial General Insurance Co. Limited* 17 15 10 12 18 13 Loyalty Insurance Company Limited N/A N/A N/A 21 44 14 Millennium Insurance Company Ltd* 15 26 40 49 31 15 Multi Insurance Company Limited N/A N/A N/A 0 58 16 NSIA Ghana Insurance Company 104 98 66 94 60 17 Phoenix Insurance Company 7 15 13 6 26 18 Prime Insurance Company Limited 86 14 13 15 13 19 Priority Insurance Company Limited 22 24 19 63 47 20 Provident Insurance Company Limited 43 62 50 46 59 21 Quality Insurance Company Limited 11 12 10 10 11 22 RegencyNEM Insurance Ghana Ltd 15 24 5 6 7 23 Saham Insurance Company Limited* 13 148 75 66 195
| 89 | 2018 Annual Report National Insurance Commission
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 24 36 32 40 52 Non-Life Companies: 24 Serene Insurance Company Limited N/A N/A N/A N/A 60 25 SIC Insurance Company Limited* 19 54 17 25 39 26 Star Assurance Company Limited 19 28 38 44 46 27 Unique Insurance Company Ltd 35 18 28 31 39 28 Vanguard Assurance Company Limited* 13 22 17 15 12 29 Wapic Insurance (Gh.) Limited* 34 86 100 109 144 Reinsurers: 1 Ghana Reinsurance Company Limited 42 45 36 51 48 2 Mainstream Reinsurance Company Limited 5 34 10 4 13 3 GN Reinsurance* 0 47 18 17 43
RETENTION RATIO This is calculated as the Net Written Premium over the capital to support the insurer. The industry recorded Gross Written Premium. It represents the portion of the an average retention ratio of 70% in 2018, representing risks that Insurers have not passed on to reinsurers. Even a one-percentage point reduction compared to 2017. though high retentions are usually considered riskier, Activa’s retention over the year 2018 remained low the tolerance level actually varies between the various compared to the industry average. lines of business. High retention will require sufficient
TABLE 39: RETENTION RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 68 66 68 71 70 Non-Life Companies: 1 Activa International Insurance Co. Limited 32 26 32 28 23 2 Allianz Insurance Company Limited 25 42 40 54 69 3 Best Assurance Company Limited* N/A N/A 77 90 81 4 Donewell Insurance Company Limited 85 80 81 75 69 5 Enterprise Insurance Company Limited 65 66 64 60 58 6 Ghana Union Assurance Company Limited 33 34 44 45 53 7 Glico General Insurance Company Limited* 37 53 47 36 54 8 GN Insurance Company Limited* N/A N/A N/A N/A 55
| 90 | 2018 Annual Report National Insurance Commission
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 68 66 68 71 70 Non-Life Companies: 9 Heritage Insurance Company Limited* N/S N/S N/S 81 86 10 Hollard Insurance Company Limited 36 49 55 51 48 11 Imperial General Insurance Co. Limited* 74 76 82 90 87 12 Loyalty Insurance Company Limited N/A N/A N/A 93 57 13 Millennium Insurance Company Ltd* 79 80 74 80 79 14 Multi Insurance Company Limited N/A N/A N/A 100 93 15 NSIA Ghana Insurance Company 80 74 70 66 72 16 Phoenix Insurance Company 72 70 64 73 72 17 Prime Insurance Company Limited 64 76 81 83 90 18 Priority Insurance Company Limited 85 83 92 89 91 19 Provident Insurance Company Limited 73 81 76 82 83 20 Quality Insurance Company Limited 79 81 83 80 76 21 RegencyNEM Insurance Ghana Ltd 81 77 90 92 90 22 Saham Insurance Company Limited* 67 55 49 45 37 23 Serene Insurance Company Limited N/A N/A N/A N/A 86 24 SIC Insurance Company Limited* 63 49 59 61 62 25 Star Assurance Company Limited 58 62 63 65 70 26 Sunu Assurance Ghana Limited 85 81 82 83 81 27 Unique Insurance Company Ltd 73 91 84 82 87 28 Vanguard Assurance Company Limited* 75 68 63 63 66 29 Wapic Insurance (Gh.) Limited* 91 76 71 60 59
Reinsurers: 1 Ghana Reinsurance Company Limited 90 82 88 88 87 2 Mainstream Reinsurance Company Limited 85 92 81 69 86 3 GN Reinsurance* 1 72 66 70 76
| 91 | 2018 Annual Report National Insurance Commission
INVESTMENT YIELD This ratio gives a reasonable indication of the return on continue to fall. Allianz, Donewell, Millennium and the investment portfolio. It is calculated by dividing the Unique recorded ratios significantly above the Industry investment income by the total investments. In 2018 Average. The ratios for Activa, Best, Enterprise, SUNU, the industry average settled at 10% commensurate to Glico, Heritage, Multi, Prime, Saham, SIC, Star and the current general market condition as interest rates Vanguard are all below the industry average.
TABLE 40: INVESTMENT YIELD
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 16 16 16 13 10 Non-Life Companies: 1 Activa International Insurance Co. Limited 10 9 12 8 8 2 Allianz Insurance Company Limited 18 30 19 14 16 3 Best Assurance Company Limited* N/A N/A 9 7 2 4 Donewell Insurance Company Limited 13 9 20 14 17 5 Enterprise Insurance Company Limited 18 20 14 12 11 6 Ghana Union Assurance Company Limited 4 7 4 2 1 7 Glico General Insurance Company Limited* 16 8 9 8 7 8 GN Insurance Company Limited* N/A N/A N/A N/A 12 9 Heritage Insurance Company Limited* N/S N/S N/S 4 4 10 Hollard Insurance Company Limited 20 12 20 19 14 11 Imperial General Insurance Co. Limited* 23 27 21 10 15 12 Loyalty Insurance Company Limited N/A N/A N/A 9 13 13 Millennium Insurance Company Ltd* 24 23 18 21 20 14 Multi Insurance Company Limited N/A N/A N/A 12 2 15 NSIA Ghana Insurance Company 14 19 19 15 11 16 Phoenix Insurance Company 14 14 18 16 14 17 Prime Insurance Company Limited 30 2 22 20 8 18 Priority Insurance Company Limited 26 28 8 13 11 19 Provident Insurance Company Limited 22 17 16 16 15 20 Quality Insurance Company Limited 16 10 14 16 15 21 RegencyNEM Insurance Ghana Ltd 15 17 19 17 13 22 Saham Insurance Company Limited* 8 3 9 9* 6 23 Serene Insurance Company Limited N/A N/A N/A N/A 12 24 SIC Insurance Company Limited* 11 17 15 10 7
| 92 | 2018 Annual Report National Insurance Commission
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 16 16 16 13 10 Non-Life Companies: 25 Star Assurance Company Limited 10 20 23 14 5 26 Sunu Assurance Ghana Limited 11 16 13 12 9 27 Unique Insurance Company Ltd 8 13 17 18 16 28 Vanguard Assurance Company Limited* 12 24 11 9 4 29 Wapic Insurance (Gh.) Limited* 21 15 22 16 12
Reinsurers
1 Ghana Reinsurance Company Limited 21 18 13 12 8 2 Mainstream Reinsurance Company Limited 33 9 20 19 11 3 GN Reinsurance* 6 14 20 11 11
RETURN ON ASSET RATIO This ratio is an indicator of general profitability of the five years, with 2018 being the highest. Allianz Insurance, insurer. It is calculated as after tax profits divided by Hollard Insurance, Imperial General, Loyalty Insurance, total assets. It seeks to measure the efficiency with Multi Insurance, NSIA Ghana, Phoenix Insurance, Saham which management utilize the assets of the company Insurance and Serene Insurance recorded negative to generate returns for the various stakeholders. The return on assets. SIC attained the highest return on industry average has hovered between 3% and 6% in assets.
TABLE 41: RETURN ON ASSET RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 4 3 4 4 6 Non-Life Companies: 1 Activa International Insurance Co. Limited 3 3 4 3 5
2 Allianz Insurance Company Limited (6) (12) (5) (31) (17) 3 Best Assurance Company Limited* N/A N/A 2 9 7 4 Donewell Insurance Company Limited 11 11 12 7 14 5 Enterprise Insurance Company Limited 12 7 14 8 6 7 Ghana Union Assurance Company Limited 2 4 1 1 8
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 4 3 4 4 6 Non-Life Companies: 8 Glico General Insurance Company Limited* (10) (3) 6 7 5 9 GN Insurance Company Limited* N/A N/A N/A N/A 4 10 Heritage Insurance Company Limited* N/S N/S N/S 16 12 11 Hollard Insurance Company Limited 3 3 7 6 (3) 12 Imperial General Insurance Co. Limited* 2 1 (9) 3 (1)
13 Loyalty Insurance Company Limited N/A N/A N/A (10) (10) 14 Millennium Insurance Company Ltd* 5 (1) 6 8 13 15 Multi Insurance Company Limited N/A N/A N/A (4) (1) 16 NSIA Ghana Insurance Company (18) 3 3 6 (3) 17 Phoenix Insurance Company 9 3 8 9 (1)
18 Prime Insurance Company Limited (215) (4) 2 2 (29) 19 Priority Insurance Company Limited 11 16 6 2 5 20 Provident Insurance Company Limited 13 11 9 7 2 21 Quality Insurance Company Limited 1 3 6 7 2 22 RegencyNEM Insurance Ghana Ltd 17 3 10 4 3 23 Saham Insurance Company Limited* 1 1 (18) 2 (18)
24 Serene Insurance Company Limited N/A N/A N/A N/A (18) 25 SIC Insurance Company Limited* (5) 5 2 5 17 26 Star Assurance Company Limited 1 10 11 8 5 6 Sunu Assurance Ghana Limited 6 8 11 11 8 27 Unique Insurance Company Ltd (3) N/S 19 6 6 28 Vanguard Assurance Company Limited* 1 7 8 8 2 29 Wapic Insurance (Gh.) Limited* 13 (7) (12) 6 0
Reinsurers: 1 Ghana Reinsurance Company Limited 13 5 7 6 8 2 Mainstream Reinsurance Company Limited 9 5 9 11 7 3 GN Reinsurance* 3 6 10 9 8
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CLAIMS RATIO This ratio is calculated as the net claims incurred years has been low compared to the international divided by the Net Earned Premiums. It is a key ratio acceptable standard, which ranges between 40% and which indicates how well an insurance company pays 60%. Since the core obligation of an insurer is to pay claims and to some extent, of fair customer treatment. claims, insurers must ensure that all incurred claims The ratio is an indication of how much policyholders are paid quickly in order to win the confidence of the get back in return for each cedi of premium paid to public. In 2018, the industry average increased to 42% insurance companies. The industry average over the from 37% in the previous year.
TABLE 42: CLAIMS RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 37 37 39 37 42 Non-Life Companies: 1 Activa International Insurance Co. Limited 37 34 24 36 24 2 Allianz Insurance Company Limited 31 100 44 63 66 3 Best Assurance Company Limited* N/A N/A 13 11 13 4 Donewell Insurance Company Limited 25 16 30 50 27 5 Enterprise Insurance Company Limited 62 63 53 61 53 7 Ghana Union Assurance Company Limited 54 53 63 50 48 8 Glico General Insurance Company Limited* 51 62 58 36 32 9 GN Insurance Company Limited* N/A N/A N/A N/A 71 10 Heritage Insurance Company Limited* N/S N/S N/S 21 19 11 Hollard Insurance Company Limited 64 55 46 43 64 12 Imperial General Insurance Co. Limited* 32 30 20 22 28 13 Loyalty Insurance Company Limited N/A N/A N/A 34 73 14 Millennium Insurance Company Ltd* 26 67 46 48 25 15 Multi Insurance Company Limited N/A N/A N/A 2 55 16 NSIA Ghana Insurance Company 70 24 32 39 36 17 Phoenix Insurance Company 34 54 44 35 57 18 Prime Insurance Company Limited 97 24 29 35 34 19 Priority Insurance Company Limited 14 18 12 27 15 20 Provident Insurance Company Limited 27 36 28 41 35 21 Quality Insurance Company Limited 21 34 30 30 33 22 RegencyNEM Insurance Ghana Ltd (3) 43 35 38 33 23 Saham Insurance Company Limited* 16 52 63 26* 101 24 Serene Insurance Company Limited N/A N/A N/A N/A 63
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 37 37 39 37 42 Non-Life Companies: 25 SIC Insurance Company Limited* 71 58 25 35 30 26 Star Assurance Company Limited 29 42 45 37 31 6 Sunu Assurance GhanaLimited 24 25 32 28 29 27 Unique Insurance Company Ltd 28 43 51 43 37 28 Vanguard Assurance Company Limited* 42 58 40 41 41 29 Wapic Insurance (Gh.) Limited* 15 76 81 55 44
Reinsurers: 1 Ghana Reinsurance Company Limited 56 67 30 49 38 2 Mainstream Reinsurance Company Limited 27 28 15 28 36 3 GN Reinsurance* 0 93 23 33 43
TOTAL EXPENSE RATIO The total expense ratio is another key indicator inefficient in discharging its insurance obligations and of profitability. It is calculated as Total Expense this is likely to affect its ability to pay claims promptly. (Management Expense + Commission expense) In 2018, the industry average expense ratio was 99%. as a percentage of the Net Earned Premium. The A decline from 2017’s experience of 86%. Fourteen of international acceptable ratio is typically less than 40%. the licensed Non-Life insurers recorded expense ratios The implication of a high ratio is that, the insurer is greater than 100%.
TABLE 43: TOTAL EXPENSE RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 92 115 89 86 99 Non-Life Companies: 1 Activa International Insurance Co. Limited 95 107 117 114 126 2 Allianz Insurance Company Limited 91 139 97 149 98 3 Best Assurance Company Limited* N/A N/A N/A 81 79 4 Donewell Insurance Company Limited 78 72 64 59 66 5 Enterprise Insurance Company Limited 55 50 51 59 67 6 Ghana Union Assurance Company Limited 74 74 72 73 68 7 Glico General Insurance Company Limited* 62 103 68 79 94
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 92 115 89 86 99 Non-Life Companies: 8 GN Insurance Company Limited* N/A N/A N/A N/A 456 9 Heritage Insurance Company Limited* 189 N/S N/S 63 62 10 Hollard Insurance Company Limited 80 86 81 82 100 11 Imperial General Insurance Co. Limited* 160 220 136 91 111 12 Loyalty Insurance Company Limited 67 112 118 515 245 13 Millennium Insurance Company Ltd* 117 115 116 83 79 14 Multi Insurance Company Limited 113 88 83 1719 182 15 NSIA Ghana Insurance Company 357 495 109 118 114 16 Phoenix Insurance Company 137 117 91 90 91 17 Prime Insurance Company Limited 106 113 105 95 140 18 Priority Insurance Company Limited 81 83 75 86 86 19 Provident Insurance Company Limited 76 92 75 72 80 20 Quality Insurance Company Limited 91 99 89 76 82 21 RegencyNEM Insurance Ghana Ltd 100 87 79 73 81 22 Saham Insurance Company Limited* 83 106 88 107 153 23 Serene Insurance Company Limited N/A N/A N/A N/A 5280 24 SIC Insurance Company Limited* 120 91 85 88 107 25 Star Assurance Company Limited 66 76 73 76 105 26 Sunu Assurance Ghana Limited 68 74 78 70 68 27 Unique Insurance Company Ltd 79 91 121 80 79 28 Vanguard Assurance Company Limited* 76 73 73 70 72 29 Wapic Insurance (Gh.) Limited* 46 62 67 116 105
Reinsurers: 1 Ghana Reinsurance Company Limited 67 57 57 56 60 2 Mainstream Reinsurance Company Limited 64 69 69 77 67 3 GN Reinsurance* 531 124 84 86 73
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COMBINED RATIO The combined ratio is the summation of the Claims 100% usually indicates a loss. This may not be the case Ratio and the Total Expense Ratio. It is the single best for companies that make huge investment and other measure of an insurer’s underwriting and operational related earnings to boost their profitability. Industry efficiency. The ratio does not measure total profitability average increased by eighteen percentage points to as investment income and other earnings are 142% in 2018 from 124% in 2017. Industry players must excluded. Generally, a ratio of less than 100% indicates strive to improve their underwriting efficiencies to be underwriting profitability while a ratio of more than more profitable.
TABLE 44: COMBINED RATIO
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 124 137 133 124 142 Non-Life Companies: 1 Activa International Insurance Co. Limited 143 151 142 150 150 2 Allianz Insurance Company Limited 170 196 158 212 164 3 Best Assurance Company Limited* N/A N/A 151 92 92 4 Donewell Insurance Company Limited 97 80 99 109 93 5 Enterprise Insurance Company Limited 111 114 96 120 120 6 Ghana Union Assurance Company Limited 129 125 135 123 116 7 Glico General Insurance Company Limited* 153 130 116 116 126 8 GN Insurance Company Limited* N/A N/A N/A N/A 527 9 Heritage Insurance Company Limited* N/S N/S N/S 84 81 10 Hollard Insurance Company Limited 150 136 122 125 164 11 Imperial General Insurance Co. Limited* 252 166 153 113 139 12 Loyalty Insurance Company Limited N/A N/A N/A 549 318 13 Millennium Insurance Company Ltd* 139 185 127 131 104 14 Multi Insurance Company Limited N/A N/A N/A 1721 237 15 NSIA Ghana Insurance Company 185 140 176 156 150 16 Phoenix Insurance Company 122 138 141 125 148 17 Prime Insurance Company Limited 593 132 129 130 174 18 Priority Insurance Company Limited 131 109 100 113 101 19 Provident Insurance Company Limited 140 142 108 113 115 20 Quality Insurance Company Limited 104 109 105 106 115 21 RegencyNEM Insurance Ghana Ltd 90 117 106 112 114 22 Saham Insurance Company Limited* 115 141 221 133 254 23 Serene Insurance Company Limited N/A N/A N/A N/A 5343 24 SIC Insurance Company Limited* 158 137 158 123 137
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 124 137 133 124 142 Non-Life Companies: 25 Star Assurance Company Limited 135 130 128 114 136 26 Sunu Assurance Ghana Limited 97 103 99 97 97 27 Unique Insurance Company Ltd 119 128 119 123 116 28 Vanguard Assurance Company Limited* 117 131 113 112 113 29 Wapic Insurance (Gh.) Limited* 106 197 202 171 149
Reinsurers: 1 Ghana Reinsurance Company Limited 118 87 87 105 98 2 Mainstream Reinsurance Company Limited 92 84 84 105 102 3 GN Reinsurance* 531 147 107 119 117
TECHNICAL RESERVE COVER This is calculated by dividing the Technical Provisions backing their technical provisions. SUNU, Ghana by the liquid investments. It is an indicator of whether Union, Glico, Hollard, Priority, Saham, Wapic and Prime sufficient liquid assets are being held to cover the reported ratios above 100%. 2018 recorded a ratio of technical provisions, as claims should be paid as and 87% an increase from 70% in 2017. Industry participants when they fall due. Ratios above 100% mean that the should endeavor to improve on their liquidity and companies do not have enough liquid investments solvency position.
TABLE 45: TECHNICAL RESERVE COVER
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 70 76 64 70 87 Non-Life Companies: 1 Activa International Insurance Co. Limited 104 224.18 90 94 81 2 Allianz Insurance Company Limited 27 206.55 85 72 97 3 Best Assurance Company Limited* N/A N/A 7.47 7 20 4 Donewell Insurance Company Limited 92 117.51 59 74 72 5 Enterprise Insurance Company Limited 37 111.99 59 56 67 6 Ghana Union Assurance Company Limited 137 428.83 657 726 432 7 Glico General Insurance Company Limited* 95 111.15 96 108 143 8 GN Insurance Company Limited* N/A N/A N/A N/A 6 9 Heritage Insurance Company Limited* N/S N/S N/S 83 121
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 70 76 64 70 87 Non-Life Companies: 10 Hollard Insurance Company Limited 55 194.94 111 116 133 11 Imperial General Insurance Co. Limited* 38 51 60 39 42 12 Loyalty Insurance Company Limited N/A N/A N/A 10 18 13 Millennium Insurance Company Ltd* 24 34.85 27 30 23 14 Multi Insurance Company Limited N/A N/A N/A 4 12 15 NSIA Ghana Insurance Company 95 79.48 27 38 32 16 Phoenix Insurance Company 55 52.27 57 57 59 17 Prime Insurance Company Limited 521 41.94 69 66 123 18 Priority Insurance Company Limited 15 18.33 61 146 114 19 Provident Insurance Company Limited 45 47.06 43 42 49 20 Quality Insurance Company Limited 153 128.08 53 50 62 21 RegencyNEM Insurance Ghana Ltd 68 88 72 62 58 22 Saham Insurance Company Limited* 53 90.68 123 124 108 23 Serene Insurance Company Limited N/A N/A N/A N/A 6 24 SIC Insurance Company Limited* 97 146.66 101 100 92 25 Star Assurance Company Limited 36 60.9 68 39 64 26 Sunu Assurance Ghana Limited 91 96.76 52 66 102 27 Unique Insurance Company Ltd 138 42.67 41 45 46 28 Vanguard Assurance Company Limited* 61 71.86 50 56 98 29 Wapic Insurance (Gh.) Limited* 36 39.75 69 231 254
Reinsurers: 1 Ghana Reinsurance Company Limited 34 35 37 44 44 2 Mainstream Reinsurance Company Limited 69 41 42 25 28 3 GN Reinsurance* 2 15 18 19 29
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PROPORTION OF INVESTMENT ASSETS This ratio is calculated as total investments divided management than other assets such as Property, by total asset. It is a useful measure of the quality of Plant and Equipment and/or Receivables. In 2018, the assets on the insurer’s balance sheet. Investments are industry average increased by one percentage point to generally better assets in terms of liquidity and capital 67% as compared to 66% in 2017.
TABLE 46: PROPORTION OF INVESTMENT ASSETS
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 51 72 66 66 67 Non-Life Companies: 1 Activa International Insurance Co. Limited 66 36.09 56 52 53 2 Allianz Insurance Company Limited 75 30.62 43 56 57 3 Best Assurance Company Limited* N/A N/A 82.82 79 75 4 Donewell Insurance Company Limited 72 64.37 71 64 61 5 Enterprise Insurance Company Limited 87 45.66 67 74 69 6 Ghana Union Assurance Company Limited 96 60.01 54 67 64 7 Glico General Insurance Company Limited* 83 82.5 71 62 65 8 GN Insurance Company Limited* N/A N/A N/A N/A 93 9 Heritage Insurance Company Limited* N/S N/S N/S 74 54 10 Hollard Insurance Company Limited 80 41.71 53 53 53 11 Imperial General Insurance Co. Limited* 50 46 53 63 67 12 Loyalty Insurance Company Limited N/A N/A N/A 66 72 13 Millennium Insurance Company Ltd* 88 82.11 87 87 84 14 Multi Insurance Company Limited N/A N/A N/A 71 71 15 NSIA Ghana Insurance Company 64 66.06 85 77 78 16 Phoenix Insurance Company 73 83.79 79 81 84 17 Prime Insurance Company Limited 28 66.15 64 62 82 18 Priority Insurance Company Limited 78 78.68 74 47 49 19 Provident Insurance Company Limited 65 45.5 60 65 66 20 Quality Insurance Company Limited 22 32.13 54 58 55 21 RegencyNEM Insurance Ghana Ltd 68 65.38 62 58 58 22 Saham Insurance Company Limited* 48 43.32 25 31 51 23 Serene Insurance Company Limited N/A N/A N/A N/A 70 24 SIC Insurance Company Limited* 61 50.33 62 65 58 25 Star Assurance Company Limited 88 76.61 79 87 89
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 51 72 66 66 67 Non-Life Companies: 26 Sunu Assurance Ghana Limited 55 51.8 62 63 49 27 Unique Insurance Company Ltd 83 92.61 96 85 90 28 Vanguard Assurance Company Limited* 63 65.12 78 79 61 29 Wapic Insurance (Gh.) Limited* 83 83.49 68 65 55
Reinsurers: 1 Ghana Reinsurance Company Limited 96 69 74 78 78 2 Mainstream Reinsurance Company Limited 57 62 83 66 67 3 GN Reinsurance* 99 95 91 93 91
RETURN ON EQUITY This ratio measures the return on the shareholders’ funds may not always be an indication of good performance over a period. It indicates how effective management is as such factors as capital adequacy can boost the ratio. at growing and funding the operations of an insurance The industry average for 2018 was 12%. company using equity financing. In practice, high ratios
TABLE 47: RETURN ON EQUITY
Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 10 6 6 9 12 Non-Life Companies: 1 Activa International Insurance Co. Limited 8 15 13 12 15 2 Allianz Insurance Company Limited (9) (43) (12) (54) (70) 3 Best Assurance Company Limited* N/A N/A 3 14 13 4 Donewell Insurance Company Limited 30 21 26 15 29 5 Enterprise Insurance Company Limited 23 20 33 18 17 6 Ghana Union Assurance Company Limited 2 8 2 1 14 7 Glico General Insurance Company Limited* (23) (8) 12 14 9 8 GN Insurance Company Limited* N/A N/A N/A N/A 5 9 Heritage Insurance Company Limited* N/S N/S NS 23 17 10 Hollard Insurance Company Limited 10 15 22 19 (10) 11 Imperial General Insurance Co. Limited* 2 1 (14) 4 (2)
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Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 10 6 6 9 12 Non-Life Companies: 12 Loyalty Insurance Company Limited N/A N/A N/A (11) (13) 13 Millennium Insurance Company Ltd* 7 (2) 11 16 20 14 Multi Insurance Company Limited N/A N/A N/A (4) (1) 15 NSIA Ghana Insurance Company (53) 8 5 10 (4) 16 Phoenix Insurance Company 17 7 20 21 (2) 17 Prime Insurance Company Limited 230 (6) 5 6 (74) 18 Priority Insurance Company Limited 14 23 7 3 7 19 Provident Insurance Company Limited 22 15 14 11 4 20 Quality Insurance Company Limited 1 5 10 11 3 21 RegencyNEM Insurance Ghana Ltd 39 9 22 8 5 22 Saham Insurance Company Limited* 2 3 (39) 5 (136) 23 Serene Insurance Company Limited N/A N/A N/A N/A (20) 24 SIC Insurance Company Limited* (11) 12 5 10 29 25 Star Assurance Company Limited 2 21 23 13 7 26 Sunu Assurance Ghana Limited 15 17 19 21 20 27 Unique Insurance Company Ltd (7) - 28 9 10 28 Vanguard Assurance Company Limited* 5 19 21 18 5 29 Wapic Insurance (Gh.) Limited* 25 (12) (28) (18) 1
Reinsurers: 1 Ghana Reinsurance Company Limited 18 8 12 11 12 2 Mainstream Reinsurance Company Limited 12 6 12 13 10 3 GN Reinsurance* 4 7 15 11 11
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TABLE48: AGGREGATED STATEMENT OF ASSETS AS AT 31ST DECEMBER 2018 NON-LIFE
2018 2017
GHS GHS 1 Cash 168,832,305 189,418,669
2. Investments: Government of Ghana Securities 226,003,575 179,984,629 Bank of Ghana Securities 36,494,207 11,929,957 Statutory Deposits 38,798,003 33,463,385 Term deposits held at a licensed bank 435,802,628 459,808,102 Other term deposits 140,163,264 118,951,943 Corporate debt 16,046,782 13,801,053 Securities listed on Ghana Stock Exchange 57,707,431 87,039,424 Other securities 128,734,084 66,389,269 Equity backed mutual funds 623,194 522,145 Money market mutual funds 2,163,216 1,825,484 Land & buildings held as an investment 294,893,466 87,125,979 Investments in, and subordinated loans to, 40,271,175 37,029,196 connected persons
Total Investments 1,417,701,026 1,097,870,566
3. Receivables:
Staff Loans and Advances 13,138,669 12,251,219 Due from reinsurers less than 3 months old 78,339,811 33,847,432 Due from reinsurers more than 3 months old 61,631,471 50,156,756 Due from Other Insurers 12,678,746 12,490,112 Due from Agents and Brokers 1,565,659 406,752 Due from Connected Persons 38,221,618 16,847,909 Reinsurance Share of Insurance liabilities 252,050,967 197,221,050 Deferred Tax Asset 17,197,392 12,665,079 Other Receivables 80,792,995 56,370,875
Total Receivables 555,617,330 392,257,185
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4 Property, Plant and Equipment
Land & buildings occupied by insurer for own use 137,520,812 94,772,556 Plant and Equipment 8,261,477 8,396,270 Computer Hardware and Software 16,139,758 14,606,312 Motor Vehicles 32,025,323 25,038,041 Furniture and Fittings 11,180,818 8,612,695 Other Assets 9,745,899 16,198,951
Total Property, Plant & Equipment 214,874,086 167,624,826
5 Intangible Assets
Other assets shown as intangible assets 3,445,728 2,374,377
Total Intangible Assets 3,445,728 2,374,377
6 Other Assets Deferred acquisition costs 11,327,535 11,221,424 Corporate stationery 191,334 202,402 Other assets not included above 3,579,304 2,698,256
Total Other Assets 15,098,173 14,122,082 TOTAL ASSETS 2,375,568,650 1,863,667,705
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TABLE 49: AGGREGATED STATEMENT OF EQUITY AND LIABILITIES AS AT 31ST DECEMBER 2018 NON-LIFE
2018 2017
GHS GHS 1. Technical Provisions Unearned Premiums 461,307,874 374,586,483 Unexpired Risk Provision 29,438 9,296 Outstanding Claims 272,573,340 208,962,219 IBNR Provision 85,513,971 56,750,620 Other Provisions 4,241,767 3,046,982
Total Technical Provisions 823,666,390 643,355,600
2. Payables
Bank Overdrafts and Loans 15,614,452 11,058,252 Due to Reinsurers 109,245,157 61,759,754 Due to Other Insurers 15,140,024 5,626,288 Due to Agents and Brokers 21,766,307 16,163,374 Taxation 19,011,597 24,483,365 Deferred Tax 18,982,548 21,699,348 Due to Related Parties 16,113,070 12,034,897 Other Accruals & Payables 108,435,782 93,171,105
Total Payables 324,308,937 245,996,383
3. Long Term Liabilities Unsecured Subordinated Debts 1 year or less to maturity 22,015,000 - Other Borrowings 9,089,753 1,000,000.00
31,104,753 1,000,000.00 Total Long Term Liabilities
4. Equity
Paid up ordinary shares 633,709,997 538,436,689 Paid up perpetual non-cumulative preference 8,000,000 8,000,000 Shares Paid up perpetual cumulative preference 1,470,000 1,350,000 shares
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Contingency Reserves 217,583,662 184,408,957 Revaluation reserve (owned land & buildings) 123,683,740 62,283,407 Revaluation reserve (investments - excluding 46,114,881 71,354,974 items to be deducted from core Revaluation reserve (other) 2,240,845 6,240,476
Other reserves 15,431,193 -428,290 Retained earnings, as at end of previous 86,201,071 52,234,991 financial year Current year net earnings/deficit 62,009,779 49,391,116 Others 43,402 43,402 Total Equity 1,196,488,570 973,315,723
TOTAL LIABILITIES AND EQUITY 2,375,568,650 1,863,667,705
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Appendices
1. 2018 Financial Reports 2. Fire Maintenance Fund 3. List of Registered Insurance Companies 4. List of Registered Reinsurance Companies 5. List of Registered Broking Companies
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Directors’ Report
The Directors submit their report together with the audited Financial Statements of the National Insurance Commission (The Commission) for the year ended 31st December, 2018.
Statement of Directors’ Responsibilities detection of fraud and other irregularities. The Directors are responsible for the preparation of the Principal Activities Financial Statements for each financial year which give a true and fair view of the state of affairs of the Commission The objective of the Commission is to ensure effective and of the operating performance and Cash Flows for administration, supervision, regulation, monitoring that period. In preparing these Financial Statements, and control of the business of insurance to protect the Directors have selected suitable accounting policies insurance policy holders and the insurance industry in and then applied them consistently, made judgments Ghana other than health insurance under the National and estimates that are reasonable and prudent and Health Insurance Act, 2003 (Act 650). followed the Ghana National Accounting Standards. Directors The Directors are responsible for ensuring that the By virtue of the provisions of the Transitional Act Commission keeps proper accounting records that all the Directors retired on 6th January 2017. New disclose reasonable accuracy at any time the financial Directors were appointed on 18th August, 2017. The position of the Commission. The Directors are also Commissioner was appointed on 12th July, 2017. responsible for safeguarding the assets of the Commission and taking reasonable steps for the prevention and
FINANCIAL RESULTS (HIGHLIGHTS) The financial results of the Commission are as summarised below:
2018 2017 GHS GHS
Excess of Income over Expenditure 5,530,390 2,741,095 Total Assets 76,887,335 40,342,023 Accumulated Funds 23,786,622 18,256,232
By order of the Board
14th June, 2019
......
DIRECTOR DIRECTOR
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NATIONAL INSURANCE COMMISSION Independent Auditors’ Report to the Honourable Minister of Finance
Opinion In preparing the financial statements, the Board of Directors are responsible for assessing the Commission’s We have audited the financial statements of National ability to continue as a going concern, disclosing, as Insurance Commission which comprise the statement applicable, matters related to going concern and using of financial positon as at 31 December, 2018 Income and the going concern basis of accounting unless the Board Expenditure Accounts and cash flow statement for the of Directors either intends to liquidate the Commission year then ended, and notes to the financial statements, or to cease operations, or has no realistic alternative including a summary of significant accounting policies but to do so. The Board of Directors are responsible and other explanatory notes as set out on pages 115 to for overseeing the Commission’s financial reporting 122. process.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Auditors’ Responsibility Commission as at 31 December, 2018 and of its financial performance and its cash flows for the year then Our objectives are to obtain reasonable assurance ended in accordance with Ghana National Accounting about whether the financial statements as a whole Standards and in the manner required by the Insurance are free from material misstatement, whether due Act 2006 (Act 724). to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Basis for Opinion conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements We conducted our audit in accordance with the can arise from fraud or error and are considered International Standards on Auditing (ISAs). Our material if, individually or in the aggregate, they could responsibilities under those standards are further reasonably be expected to influence the economic described in the Auditor’s Responsibilities for the Audit decision of users, taken on the basis of these financial of the Financial Statements section of our report. We are statements. independent of the Commission in accordance with the International Ethics Standards Board for Accountants’ As part of an audit in accordance with ISAs, we exercise Code of Ethics for Professional Accountants (IESBA professional judgement and maintain professional Code), and we have fulfilled our other ethical skepticism throughout the audit. We also; responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained • Identify and assess the risks of material is sufficient and appropriate to provide a basis for our misstatement of the financial statements, opinion. whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is Responsibilities of the Board of Directors sufficient and appropriate to provide a basis for the Financial Statements for our opinion. The Board of Directors are responsible for the • The risk of not detecting a material preparation of the financial statements in accordance misstatement resulting from fraud is higher with Ghana National Accounting Standards and in the than for one resulting from error, as fraud manner required by the Insurance Act 2006 (Act 724) may involve collusion, forgery, intentional and for such internal control as the Board of Directors omissions, misrepresentations, or the override determine necessary to enable the preparation of of internal control. financial statements that are free from material • Obtain an understanding of internal control misstatement, whether due to fraud or error. relevant to the audit in order to design audit procedures that are appropriate in the
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circumstances, but not for the purpose of The engagement Partner on the audit resulting in this expressing an opinion on the effectiveness of independent auditor’s report is the Commission’s internal control. Emmanuel Offei – ICAG/P/1102 • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
for: Boateng, Offei & Co. – [ICAG/F/2019/108] • Evaluate the overall presentation, structure and content of the financial statements, Chartered Accountants including the disclosures, and whether the Correspondent firm; Grant Thornton International financial statements represent the underlying transactions and events in a manner that 9 Bissau Avenue, East Legon achieves fair presentation. Accra – Ghana We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including 18th June, 2019 any significant deficiencies in internal control that we identify during our audit.
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INCOME AND EXPENDITURE ACCOUNTS For the year ended 31st December, 2018
2018 2017 Notes GHS GHS
Income 2 32,895,687 25,862,234 Expenditure 3 (27,365,297) (23,121,139) Excess of Income over Expenditure 5,530,390 2,741,095
Accumulated Funds Balance at 1st January 18,256,232 15,515,137 Excess of Income over Expenditure for the year 5,530,390 2,741,095 Balance as at 31st December 23,786,622 18,256,232
The accompanying notes form an integral part of these Financial Statements.
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STATEMENT OF FINANCIAL POSITION As at 31st December, 2018
Assets Notes 2018 2017 Non-Current Assets GHS GHS Property, Plant & Equipment 4a 46,137,580 17,854,346 Equity Investments 5 40,000 40,000 46,177,580 17,894,346
Long Term Securities 6 8,610,597 1,969,300
Current Assets Accounts Receivable 7 4,166,667 3,848,547 Short Term Investments 8 10,705,601 10,028,640 Cash & Cash Equivalents 9 7,226,890 6,601,190 22,099,158 20,478,377
Total Assets 76,887,335 40,342,023
Accumulated Fund and Deferred Grant Accumulated Funds 23,786,622 18,256,232 Revaluation Reserve 4b 46,043,660 17,111,280 Deferred Grant 10b 198,579 224,014 70,028,861 35,591,526 Current Liabilities Accounts Payable and Accruals 11 6,858,474 4,750,497
Total Liabilities, Accumulated Fund & Grant 76,887,335 40,342,023
The Financial Statements on pages 112 to 122 were approved by the Board of Directors on 14th June 2019 and were signed on its behalf by:
...... DIRECTOR DIRECTOR
The accompanying notes form an integral part of these Financial Statements.
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STATEMENT OF CASH FLOWS For the year ended 31st December, 2018
2018 2017 GHS GHS Operating Activities Cash Generated from Operations 7,427,565 3,434,649 Interest Received 330,121 424,141 Net Cash Generated from Operating Activities 7,757,686 3,858,790
Cash flow from Investing Activities Purchase of Property, Plant & Equipment (1,683,979) (1,605,217) Proceeds from the Sale of Assets 93,605 281,941 Purchase of Investments (7,318,258) (3,473,624) Investment Income Received 1,776,646 2,130,791 Net Cash used in Investing Activities (7,131,986) (2,666,109)
Net Increase/(Decrease) in Cash and Cash Equivalents 625,700 1,192,681
Movement in Cash and Cash Equivalents Cash and Cash equivalents at beginning of the year 6,601,190 5,408,509 Increase/(Decrease) in Cash and Cash Equivalents 625,700 1,192,681 Cash and Cash equivalents at the end of the year 7,226,890 6,601,190
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NOTE FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
1. Accounting Policies and Basis of Presentation The following Accounting Policies have been used in the preparation of the Financial Statements.
(a) Basis of Accounting Except for the revaluation of property, the Financial Statements have been prepared under the historical cost convention and accrual basis and comply with the Ghana National Accounting Standards.
(b) Property, Plant and Equipment Depreciation All properties and equipment are recorded at cost less depreciation. Depreciation is calculated to write off the cost of each asset on a straight-line basis at the following annual rates. Bungalow & Office Furniture & Fittings 20% Motor Vehicles 20% Office Equipment 20% Office Building 3% Computers & Accessories 33.33% Disposals of properties and equipment are accounted for by comparing the net book value with the proceeds. The resulting profit or loss on disposal is credited or charged to the Income and Expenditure Account. Depreciation method, residual values and useful life are re-assessed at the end of each financial year. Any Equipment costing less than GH¢2,000 is written off in the year of purchase.
(c) Cash and Cash Equivalents For the purpose of the Cash Flow Statement, cash and cash equivalents comprise cash on hand and Bank Balances.
(d) Investments Investment securities are in the form of Treasury Bills, Fixed Deposits, Non-Negotiable Certificates of Deposit and Euro-Bonds. Investments are quoted at cost.
(e) Accounts Receivable Accounts receivable are stated net of bad and doubtful debts.
(f) Transactions in Foreign Currencies Transactions in foreign currency during the year are translated into Ghana cedis at rates prevailing at the time of transaction. Monetary assets and liabilities denominated in foreign currency at the balance sheet date are translated into cedis at the exchange rate ruling on that date. Gains and losses resulting from the translation are dealt with in the Income and Expenditure Account in the year in which they arise.
(g) Stocks Stocks are ordered just for the year and are charged to the Income and Expenditure Account in the year of purchase. However, the quantities of unused Insurance stickers and PVC holders are reflected in the annual accounts as part of the notes.
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NOTE FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
2 Income Notes 2018 2017 This is made up as follows: GHS GHS
Levies on Life Insurers 3,939,950 3,411,275 Levies on Non-life Insurers 9,550,050 8,004,985 Levies on Reinsurers 1,612,820 1,351,800 Levies on Brokers 958,416 831,156 Licensing/Renewal Income 1,488,100 1,143,683 Investment Income 1,776,646 2,130,791 Interest Received 2a 330,121 424,141 Motor Contribution 4,786,391 5,064,002 Sale of Fire Certificates 32,625 13,500 Grant Income 10a - 101,934 Deferred Grant Income 10b 25,435 25,435 Rent Income/Fees - IITC 54,936 127,243 Mega Risk Income 4,523,253 2,715,489 Penalties 3,445,150 98,339 Exchange Gains 129,260 244,117 Training Fees - 63,400 Other Income 2b 242,534 110,944 32,895,687 25,862,234 2a Interest Received Call Accounts 267,263 410,751 Current Accounts 62,858 13,390 330,121 424,141 2b Other Income Year Book Sales 37,100 14,290 Interest on Loans 59,075 35,975 Gains on Sales of Assets 78,800 52,423 Motor Third Party 55,575 - Insurance Claims 4,250 - Others 7,734 8,256 242,534 110,944
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NOTE FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
3 Expenditure Notes 2018 2017 Expenditure is made up as follows: GHS GHS
Training/Workshops/Conferences/Seminars 1,629,030 1,155,665 Directors’ Remuneration 573,876 423,946 Electricity & Water 305,435 357,181 General Office Expenses 2,575,173 1,397,302 Medicals 450,321 168,189 Public Education 1,081,494 71,733 Repairs & Maintenance 523,894 295,039 Staff Cost 14,657,087 12,298,772 Staff Terminal Benefit Cost 15 1,422,063 4,279,138 Sticker & Adhesive Cost 73,823 256,379 Vehicle Running Cost 769,630 604,293 Rent Expenses 271,642 118,072 Telephone 174,136 94,236 Audit Fees 30,476 27,025 Depreciation 2,318,320 1,253,654 Insurance Premium 228,896 154,669 Internet Services/Subscription 169,854 71,599 Security Services 110,147 94,247 27,365,297 23,121,139
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NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
4a Property, Plant & Equipment Office Bungalow Office Furniture Motor Office Computers & Furniture Building & Fittings Vehicle Equipment Accessories & Fittings Total
At 1st January, 2018 17,632,000 646,632 2,329,985 525,204 550,124 249,685 21,933,630 Additions - 103,572 1,184,507 147,226 96,422 152,252 1,683,979 Revaluation 27,345,500 - - - - - 27,345,500 Disposals - - (331,300) - - (28,000) (359,300) 31st December, 2018 (A) 44,977,500 750,204 3,183,192 672,430 646,546 373,937 50,603,809
Depreciation At 1 January, 2018 1,586,880 389,697 1,170,053 427,986 422,831 81,837 4,079,284 Charge for the year 1,349,325 125,158 578,767 76,842 113,749 74,479 2,318,320 Revaluation (1,586,880) - - - - - (1,586,880) Disposals - - (331,295) - - (13,200) (344,495) 31st December, 2018 1,349,325 514,855 1,417,525 504,828 536,580 143,116 4,466,229
Net Book Value 31st December, 2018 43,628,175 235,349 1,765,667 167,602 109,966 230,821 46,137,580
31st December, 2017 16,045,120 256,935 1,159,932 97,218 127,293 167,848 17,854,346
Cost Fully Depreciated (B) - 107,647 295,880 288,148 46,668 1,300 739,643 Depreciable Value (A-B) - 642,557 2,887,312 384,282 599,878 372,637 49,864,166
Disposal of Property & Equipment Cost - - 331,300 - - 28,000 359,300 Accum. Depreciation - - (331,295) - - (13,200) (344,495) Net Book Value - - 5 - - 14,800 14,805 Proceeds on Sale - - 78,800 - - 14,805 93,605
Profit/(Loss) on Disposal - - 78,795 - - 5 78,800
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4b Revaluation Reserve
This represents surplus arising on the revaluation of the Commission’s property plant and equipment.
5 Equity Investment - GHS 40,000 This represents 40% National Insurance Commission’s share holding in the Ghana Insurance College (GIC). The book value of the investment on the GIC’s balance sheet is GHS 882,930 as at 31/12/2017.
6 Long-Term Securities Long-Term Securities are Eurobonds held-to-maturity with a coupon of 8.5% maturing in 2018. 2018 2017 GHS GHS
GOG Bonds 8,610,597 1,969,300
2018 2017 7 Accounts Receivable and Prepayments GHS GHS Levies due from Insurers and Brokers 1,188,898 1,696,800 Fire Maintenance Fund - - West African Insurance Institute 108,480 56,859 IITC Debtors 46,117 51,998 Staff Advances 1,129,322 610,991 Sundry Debtors 16,030 191,886 Accrued Investment Income 386,378 517,033 Prepaid Insurance Expenses 156,618 152,351 Penalties Receivable 947,424 201,029 Rent Prepaid 187,400 369,600 4,166,667 3,848,547
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NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
2018 2017 8 Short Term Investments GHS GHS This is made up as follows: Fixed Deposits 5,339,095 8,122,934 Treasury Bills 5,366,506 1,905,706 10,705,601 10,028,640
Balance as at 1st January 10,028,640 6,796,711 Additions 676,961 3,231,929 10,705,601 10,028,640 Withdrawal - - Balance as at 31st December 10,705,601 10,028,640
Net Movement in Investments 676,961 3,231,929
9 Cash and Cash Equivalents 2018 2017 GHS GHS Cash 21,304 43,597 Bank 7,205,586 6,557,593 7,226,890 6,601,190 10 a. Grants Grants include support from (Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, to support insurance market development in Ghana and from the insurance industry to sponsor various programmes and activities 2018 2017 Grant Received GHS GHS - 101,934
b. Deferred Grants Deferred Grants represent grants received from the World Bank and Government of Ghana through the Ministry of Finance for the construction and furnishing of the Insurance Industry Training Centre (IITC) building, which is being written-off over its depreciable life.
2018 2017 GHS GHS Balance at 1st January 224,014 249,449 Transfer to Income and Expenditure Account (25,435) (25,435) Balance at 31st December 198,579 224,014
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NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
2018 2017 11 Accounts Payable and Accruals Notes GHS GHS Accrued Expenses 12 689,284 563,656 Compensation Fund 561,060 240,975 Fire Maintenance Fund Payable 141,113 543 Motor Contributions Payable 2,415,785 1,380,829 PAYE Payable 214,789 361,031 SSF Payable 80,449 111,056 End of Service Benefit Payable 15 2,303,203 1,930,547 VAT Payable - 350 Withholding Tax Payable 15,320 69,444 Wages and Salaries Payable 437,471 - Sundry Creditors - 92,066 6,858,474 4,750,497
12 Accrued Expenses Audit Fees 30,476 27,025 Consultancy 376,734 - Medicals 21,456 15,223 Repairs and Maintenance - 4,850 Insurance Stickers - 34,820 Telephone 12,421 21,647 Water & Electricity 56,297 76,964 Directors Fee 133,582 205,168 Sundry 58,318 177,959 689,284 563,656
13 Reconciliation of Excess of Income over Expenditure to Cash flow from Operating Activities Excess of Income over Expenditure 5,530,390 2,889,404 Amortisation of Capital Grant (25,435) (25,435) Depreciation 2,318,320 1,253,655 (Gain)/Loss on Disposal of Property & Equipment (78,800) (52,423) Interest Income (330,121) (424,141)
Investment Income (1,776,646) (2,130,791) (Increase)/Decrease in Accounts Receivable & Prepayments (318,120) (952,458)
Increase/(Decrease) in Accounts Payable & Accruals 2,107,977 2,876,838
Cash Generated from Operating Activities 7, 427,565 3,434,649
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NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018
14 Gain/(Loss) on Disposal of Assets 2018 2017 GHS GHS Cost 359,300 740,190 Accumulated Depreciation (344,495) (510,672) Net Book Value 14,805 229,518 Proceeds 93,605 281,941 Gains/(Loss) on Disposal 78,800 52,423
15 Staff end of service benefit Scheme The Staff End-of-Service Benefit Scheme is a pension plan that defines an amount of pension benefit that an employee is entitled to receive on retirement, dependent on one or more factors such as age, years of service and salary. An actuarial valuation is yet to be carried out. The End-of-Service Benefit cost for 2018 includes benefit for retiring staff for the year and executives who ended their service in the course of the year.
2018 GHS Staff Retirement Benefit 2,139,395 Staff Second Tier 27,963 Provident Fund Payable 135,845 2,303,203
16 Capital Commitment There were no Capital Commitments as at 31st December, 2018 (2017 : Nil)
17 Contingent Liability There were no contingent liabilities at 31st December, 2018 (2017: Nil)
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FIRE MAINTENANCE FUND Director’s Report
The Directors present herewith the audited Financial Statements of the National Insurance Commission (NIC) Fire Maintenance Fund for the year ended 31st December, 2018.
Statement of Directors’ Responsibilities for safeguarding the assets of the Fund and taking reasonable steps for the prevention and detection of The Directors are responsible for the preparation of the fraud and other irregularities. Financial Statements for each financial year which give a true and fair view of the state of affairs of the Fund Principal Activities and of the operating result and Cash flows for that year. In preparing these Financial Statements, the Directors The principal activities of the Fund are: have selected suitable accounting policies and applied To provide funds and equipment to state institutions them consistently, made judgments and estimates that assigned with fire fighting functions and such other are reasonable and prudent in the circumstances and organisations as the Commission may determine for the followed the Ghana Accounting Standards. purpose of fighting fires.
The Directors are responsible for ensuring that the Financial Results Fund keeps proper accounting records that disclose with reasonable accuracy at any time the financial The financial results of the NIC Fire Maintenance Fund position of the Fund. The Directors are also responsible are as summarised below:
2018 2017 GHS GHS
Excess of Income over Expenditure 615,518 778,466 Total Assets 2,807,140 2,171,130 Accumulated Fund 2,166,430 1,387,964
By order of The Board
14th June, 2019
...... DIRECTOR DIRECTOR
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FIRE MAINTENANCE FUND INDEPENDENT AUDITORS’ REPORT TO THE HONOURABLE MINISTER OF FINANCE
Opinion determine necessary to enable the preparation of financial statements that are free from material We have audited the financial statements of NIC - Fire misstatement, whether due to fraud or error. Maintenance Fund which comprise the statement of financial positon as at 31st December, 2018 Income and In preparing the financial statements, the Board of Expenditure Accounts and cash flow statement for the Directors are responsible for assessing the Fund’s year then ended, and notes to the financial statements, ability to continue as a going concern, disclosing, as including a summary of significant accounting policies applicable, matters related to going concern and using and other explanatory notes as set out on pages 129 to the going concern basis of accounting unless the Board 131. of Directors either intend to liquidate the Fund or to cease operations, or has no realistic alternative but In our opinion, the accompanying financial statements to do so. The Board of Directors are responsible for give a true and fair view of the financial position of overseeing the Fund’s financial reporting process. the Fund as at 31 December, 2018 and of its financial performance and its cash flows for the year then ended in accordance with Ghana National Accounting Auditors’ Responsibility Standards and in the manner required by the Insurance Act 2006 (Act 724). Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due Basis for Opinion to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high We conducted our audit in accordance with the level of assurance, but is not a guarantee that an audit International Standards on Auditing (ISAs). Our conducted in accordance with ISAs will always detect a responsibilities under those standards are further material misstatement when it exists. Misstatements described in the Auditor’s Responsibilities for the Audit can arise from fraud or error and are considered material of the Financial Statements section of our report. We if, individually or in the aggregate, they could reasonably are independent of the Fund in accordance with the be expected to influence the economic decision of users International Ethics Standards Board for Accountants’ taken on the basis of these financial statements. Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical As part of an audit in accordance with ISAs, we exercise responsibilities in accordance with the IESBA Code. professional judgement and maintain professional We believe that the audit evidence we have obtained skepticism throughout the audit. We also; is sufficient and appropriate to provide a basis for our opinion. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit Responsibilities of the Board of Directors for the procedures responsive to those risks, and obtain Financial Statements audit evidence that is sufficient and appropriate to provide a basis for our opinion. The Board of Directors are responsible for the preparation of the financial statements in accordance with Ghana National Accounting Standards and in the manner required by the Insurance Act 2006 (Act 724) and for such internal control as the Board of Directors
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FIRE MAINTENANCE FUND INDEPENDENT AUDITORS’ REPORT TO THE HONOURABLE MINISTER OF FINANCE
• The risk of not detecting a material • Evaluate the overall presentation, structure misstatement resulting from fraud is higher and content of the financial statements, than for one resulting from error, as fraud including the disclosures, and whether the may involve collusion, forgery, intentional financial statements represent the underlying omissions, misrepresentations, or the override transactions and events in a manner that of internal control. achieves fair presentation. • Obtain an understanding of internal control relevant to the audit in order to design audit We communicate with the Board of Directors regarding, procedures that are appropriate in the among other matters, the planned scope and timing circumstances, but not for the purpose of of the audit and significant audit findings, including expressing an opinion on the effectiveness of any significant deficiencies in internal control that we the Fund’s internal control. identify during our audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of The engagement Partner on the audit resulting in this accounting estimates and related disclosures independent auditor’s report is made by the Board of Directors. Emmanuel Offei – ICAG/P/1102 • Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we for: Boateng, Offei & Co. – [ICAG/F/2019/108] conclude that a material uncertainty exists, Chartered Accountants we are required to draw attention in our auditor’s report to the related disclosures in Correspondent firm; Grant Thornton International the financial statements or, if such disclosures are inadequate, to modify our opinion. Our 9 Bissau Avenue, East Legon conclusions are based on the audit evidence Accra – Ghana obtained up to the date of our auditor’s report. However, future events or conditions may cause the Fund to cease to continue as a going concern. 18th June, 2019
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FIRE MAINTENANCE FUND INCOME AND EXPENDITURE ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER, 2018
2018 2017 Notes GHS GHS Income 2 895,777 934,590
Expenditure 3 (280,259) (156,124) Excess of Income Over Expenditure 615,518 778,466
Accumulated Fund Balance at 1st January 2,166,430 1,387,964 Excess of Income over Expenditure for the year 615,518 778,466 Balance at 31st December 2,781,948 2,166,430
The accompanying notes form an integral part of these Financial Statements.
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FIRE MAINTENANCE FUND STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2018
2018 2017 Current Assets Notes GHS GHS Accounts Receivable 4 202,391 168,639 Long Term Investments 5 400,000 - Short Term Investments 6 2,015,977 1,747,059 Bank and Cash Balances 7 188,772 255,432 2,807,140 2,171,130
Accumulated Fund 2,781,948 2,166,430
Current Liabilities Accounts Payable 8 25,192 4,700
Total Liabilities & Accumulated Fund 2,807,140 2,171,130
The Financial Statements on page 126 to 131 were approved by the Board of Directors
of the NIC on 14th June, 2019 and were signed on its behalf by:
...... DIRECTOR DIRECTOR
The accompanying notes form part of these Financial Statements
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FIRE MAINTENANCE FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER, 2018
2018 2017 Notes GHS GHS Operating Activities Cash Generated from/(used in) Operating Activities 9 316,088 403,843 Net Cash Generated from (used in) Operating Activities 316,088 403,843
Cash flow from Investing Activities Purchase of Investments (Short term) (268,918) (1,097,696) Purchase of Investments (Long term) (400,000) - Investment Income Received 286,170 365,620 Net Cash Inflow from Investing Activities (382,748) (732,076)
Net Increase in Cash and Cash Equivalents (66,660) (328,233)
Movement in Cash and Cash Equivalents Cash & Cash Equivalent at the beginning of the year 255,432 583,665 Increase in Cash and Cash equivalents 7 (66,660) (328,233) Cash & Cash Equivalent at the end of the year 188,772 255,432
The accompanying notes form an integral part of these Financial Statements.
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FIRE MAINTENANCE FUND NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2018
1 Accounting Policies The following is a summary of the significant accounting policies adopted by the Fund.
a. Basis of Accounting The Financial Statements have been prepared under the historical cost convention and accruals basis and comply with Ghana Accounting Standards.
b. Investments Investments in treasury bills and fixed deposits are stated at cost.
c. Accounts Receivable Accounts receivable are stated at a net of bad and doubtful debts.
d. Cash and Cash Equivalents For the purpose of the Cash flow Statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks.
2018 2017 2 Income GHS GHS Contribution from Insurance Companies 609,607 568,970 Investment Income 286,170 365,620 Penalties Income - - 895,777 934,590
3 Expenditure Audit Fees 6,281 4,700 Bank Charges 3,214 2,509 Bond Premium Expenses 2,118 - Support to Ghana National Fire Service 150,000 127,598 Entertainment 4,383 - General Office Expenses 38,014 6,352
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Management Fees on Investment 8,458 - Public Education 48,985 5,745 Travelling & Transport 18,806 9,220 280,259 156,124
2018 2017 GHS GHS 4 Accounts Receivable Penalties Receivable 25,000 25,000 Accrued Investment Income 21,248 143,639 Other Receivables 15,030 - National Insurance Commission 141,113 - 202,391 168,639
2018 2017 5 Long Term Investment GHS GHS EDC Balance Fund 400,000 -
6 Short Term Investment Fixed Deposit 2,015,977 1,747,059
Balance as at 1st January 1,747,059 649,363 Additions 268,918 1,097,696 Balance as at 31st December 2,015,977 1,747,059 Net Investments 268,918 1,097,696
7 Cash & Cash Equivalents 2018 2017 GHS GHS
Bank and Cash 188,772 255,432 188,772 255,432 8 Accounts Payable Audit Fees 6,281 4,700 Accrued Expenses 15,551 - Withholding Tax 3,360 - 25,192 4,700
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9 Reconciliation of Excess of Income over Expenditure to Cash Flow Operating Activities
Excess of Income over Expenditure 615,518 778,466 Investment Income (286,170) (365,620) (Increase)/Decrease in Accounts Receivable (33,752) (9,966) Increase/(Decrease) in Creditors 20,492 963 Cash Generated from / (used in) Operating Activities 316,088 403,843
10 Contingent Liabilities There were no contingent liabilities at 31st December, 2018 (2017 : Nil)
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Registered Non-Life Insurance Companies
No. NAME OF COMPANY CONTACT Activa International Insurance Company Ghana 1 Mr. Solomon Lartey , Chief Executive Officer Limited 2 Allianz Insurance Company Gh. Ltd. Mr. Darlington Munhuwani, Chief Executive Officer 3 Best Assurance Company Limited Franklin O. Asafo-Adjei, Chief Executive Officer 4 Donewell Insurance Company Mr. Seth Aklasi, Managing Director 5 Enterprise Insurance Company Mrs. Ernestina Abeh, Managing Director 6 Ghana Union Assurance Ms. Aretha Duku, Managing Director 7 Glico General Insurance Company Mr. Andrew Achampong- Kyei Esq., Managing Director 8 GN Insurance Company Albert Eyeson-Ghansah 9 Heritage Energy Insurance Company Limited Mr. Uche Okugo, Managing Director 10 Imperial General Assurance Company Ltd. Mrs. Esther Osei Yeboah, Managing Director 11 Hollard Insurance Ghana Limited Mr. Daniel Boi Addo, Managing Director 12 Loyalty Insurance Company Limited Mr. Ernest Frimpong, Managing Director 13 Millennium Insurance Company Mr. Godfried Love Djanie, Managing Director 14 Multi Insurance Company Ltd. Mr. George Jordan Robertson, Managing Director 15 NSIA Ghana Company Limited Mr. Yaw Adom Boateng, Managing Director 16 Phoenix Insurance Company Mr. Henry Bukari, Managing Director 17 Provident Insurance Company Lawyer Ato Awusie Wilson, Managing Director 18 Prime Insurance Company Limited Mr. Joseph N. Dorh, Managing Director 19 Priority Insurance Company Ltd. Mr. Matthew Aidoo, Managing Director 20 Quality Insurance Company Mr. Kobina Addison, Chief Executive Officer 21 RegencyNem Insurance Ghana Ltd. Mr. Bode Oseni, Chief Executive Officer 22 Saham Insurance, Ghana Limited Mrs. Mabel Nana Nyarkoa Porbley, Managing Director 23 Serene Insurance Company Mr. Christopher Boadi Mensah, Managing Director 24 SIC Insurance Company Limited Mr. Stephen Oduro, Managing Director 25 Star Assurance Company Mr. Kofi Duffuor, Managing Director 26 Sunu Assurances Ghana Limited Mr. Prince Sampson Yemi Adetuwo, Managing Director 27 Unique Insurance Company Limited Mr. Victor Obeng Adiyiah, Managing Director 28 Vanguard Assurance Company Limited Mr. Fred Saka, Managing Director 29 Wapic Insurance (Ghana) Limited Mr. Adedayo Arowojolu, Managing Director
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Registered Life Insurance Companies
No. NAME OF COMPANY CONTACT 1 African Life Assurance Company Limited James Ahiable, Managing Director 2 Exceed Life Assurance Company Limited Dzigbordi Agbekpormi, Chief Executive Officer Mr. Gideon Oviemo Ataraire, Ag. Chief Executive 3 Allianz Life Insurance Ghana Limited Officer 4 Avance Life Assurance (Gh) Ltd. Mrs. Judith A. Asamoah, Managing Director 5 Beige Assure Company Mr. Sheriff Abudu, Chief Executive Officer 6 Donewell Life Company Mr. Eric Ato Botchway, Managing Director 7 Enterprise Life Assurance Company Mrs. Jackie Benyi, Executive Director 8 Esich Life Assurance Company Ltd. Managing Director 9 First Insurance Company Limited Mr. Isaac Kofi Tettey, Ag. Chief Executive Officer 10 Ghana Life Insurance Company Mr. Ivan A. Avereyireh, Chief Executive Officer 11 Ghana Union Assurance Life Company Mr. Kwesi Offeh, Chief Executive Officer 12 Glico Life Insurance Company Maame Dufie Achampong-Kyei Obeng, Managing Director 13 GN Life Assurance Limited Mr. Fiifi Simpson, Chief Executive Officer 14 Hollard Life Assurance Company Limited Mr. Nashiru Iddrisu, Managing Director 15 Metropolitan Life Insurance Ghana Limited Mr. Tawiah Ben-Ahmed, Chief Executive Officer 16 MiLife Company Co. Ltd. Mr. Kwaku Yeboah-Asuamah, Chief Executive Officer 17 Old Mutual Life Assurance Co. Ghana Mr. Tavona Biza, Managing Director 18 Phoenix Life Assurance Company Mr. Richard S. Eshun, Managing Director 19 Prudential Life Insurance Ghana Mr. Emmanuel Aryee, Chief Executive Officer 20 Quality Life Assurance Company Dr. Aaron Issa Anafure, Chief Executive Officer 21 Saham Life Insurance Ghana Ltd. Mrs. Gifty Ama Fiagbe-Alabi, Chief Executive Officer 22 SIC Life Company Ltd. Mrs. Elizabeth Wyns-Dogbe, Chief Executive Officer 23 Starlife Assurance Company Mrs. Kakra Duffour-Nyarko, Chief Executive Officer 24 Vanguard Life Assurance Company Mr. George Addison, Chief Executive Officer
Registered Reinsurance Companies
No. NAME OF COMPANY CONTACT 1 Ghana Reinsurance Company George Y. Mensah, Managing Director 2 Mainstream Reinsurance Company Limited Prof. Adom Frimpong, Managing Director 3 GN Reinsurance Company Limited Joseph Kusi-Tieku, Managing Director
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Reinsurance Contact Offices
No. NAME OF COMPANY CONTACT 1 WAICA Re Corporation Plc. Mr. Clement Owusu, Regional Director, West Africa
Registered Insurance Broking Companies
No. NAME OF COMPANY CONTACT 1 AG Associates Dr. Albert Gemegah, Chief Executive Officer 2 Akoto Risk Management Mr. Nathan Adu, Managing Director 3 Allied Insurance Brokers Mr. J. I. Mensah Gadu, Managing Director 4 AllStar Insurance Brokers Mr. Peter Osei Duah, Executive Director 5 All Risks Consultancy Ltd. Mr. Albert Gladstone Brock, Managing Director 6 Alpha Insurance Brokers Mr. Kofi Ampaw, Executive Director 7 Alhet Insurance Brokers Limited Mrs. Hetty Eyeson-Ghansa, Chief Executive Officer 8 Anchor Premier Brokerage Limited Alhaji Huudu Yayaha, Managing Director 9 A P & L Consult Limited Mr. Alfred Yaw Ofori-Kuragu, Managing Consultant 10 Apex Insurance Brokers Limited Ms. Abena Aboa Inkoom, Ag. Managing Director 11 Arrowclass Insurance Brokers Company Ltd. Mr. Matthias Dapilah Chief Executive Officer 12 ARB Insurance Brokers Ltd. Mr. Abdul Rahman Bawa, Managing Director 13 Ark Insurance Brokers Company Mr. Michael Adorboe, Managing Executive 14 Ascoma Ghana Ltd. Mr. Benjamin Adjei, Chief Executive Officer 15 Asterix Brokers Limited Mr. Henry Kom, Chief Executive Officer 16 Baobab Brokers Limited Mr. Stephen E. Hagan, Chief Executive Officer 17 Boaitey & Associates Insurance Brokers Limited Mrs. Mercy Eunice Kyei, Chief Executive Officer 18 Byllwych Insurance Brokers Ltd. Mr. Samuel Sackey, Chief Executive Officer 19 Cardinal Insurance Brokers Ltd. Mr. Michael Egblorgbe Akligoh, Chief Executive Officer 20 Ceris International Limited Mr. Denis Guddah, Chief Executive Officer 21 CLAIM Limited Mr. Daniel K. Afriyie, Managing Director 22 Corporate Trust Insurance Brokers Mr. Ebenezer Allotey, Managing Director 23 Crown Insurance Brokers Mr. Kofi Kyereh-Darkwah, Executive Director 24 Danniads Limited Mr. Danny O. Adjei, Managing Director 25 Dezag Insurance Brokers Mr. Mike Gadze, Managing Director 26 Double D & M Mr. W.F. Duncan, Managing Director 27 Dynamic Insurance Brokers Ms. Bernice Martey, Ag. Managing Director 28 Edward Mensah, Wood & Associates Mr. J. S. Wood, Managing Director
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No. NAME OF COMPANY CONTACT 29 Eureka Insurance Brokers Mr. Samuel Oduro, Managing Director 30 Felin Insurance Brokers Ltd. Mr. Frankline Gbena, Chief Executive Officer 31 First Anchor Risk Management Mr. Stephen Tetteh Angmor, Managing Director 32 Functions Risk Management Mr. Alfred Williams, Chief Executive Officer 33 GBL Insurance Brokers Mr. Lord Kpodo, Chief Executive Officer 34 Goodwill Insurance Brokers Limited Mr. Samuel Assan Acquaisie, Chief Executive Officer 35 Ghana International Insurance Brokers Mr. Michael Teetey-Milligan, Ag. Managing Director 36 Global Impact Insurance Brokers (Gh) Ltd. Nana Kofi Karikari, Executive Director 37 Goldlink Insurance Brokers Prof. Kusi-Yeboah, Managing Director 38 Horizon Insurance Brokers Limited Mr. Godwin K. Amoo, Managing Director 39 J in G Insurance Brokers Limited Dr. Gideon Amenyedor, Chief Executive Officer 40 Ideal Insurance Brokers Mr. David Alex-Duduyemi, Managing Director 41 Insurance Centre of Excellence Mr. Malcolm Dennis, Managing Director 42 Inter-Africa Brokers Limited Ms. Akua Ahimba Hayford, Managing Director 43 Insurance Consultancies Int. Limited Dr. S. Ashong-Katai, Managing Consultant 44 Insurance Solutions Limited Ms. Josephine J. Amoah, Chief Executive Officer 45 Insurance Management Services Limited Ms. Bianca Nadia Noshie, Chief Executive Officer 46 IRisk Management Limited Ms. Sheila Wristberg, Executive Director 47 KAV Insurance Brokers Limited Mr. Victor Kyei Agyen, Chief Executive Officer 48 K & A Insurance Brokers Limited Miss Angela Appiah, Managing Director 49 KEK Insurance Brokers Limited Dr. Charles Oduro, Managing Director Kols & Hols Insurance Brokers & Management 50 Dr. Andrew Akolaa, Executive Director Consultants 51 Liberty Insurance Brokers Limited Mrs. Francisca Karikari, Chief Executive Officer 52 Lordship Insurance Brokers Limited Mrs. Edwina Nana Esi Ampofo, Chief Executive Officer 53 M & G Insurance Brokers Limited Mr. Stephen Kwarteng-Yeboah, Chief Executive Officer 54 Merite Insurance Brokers Limited Mr. Paul Quarshie, Managing Director 55 Metrix Brokerage Limited Ms. Afua T. Boateng, Managing Director 56 Midas Insurance Brokers Limited Mr. James Anti, Chief Executive Officer 57 Multinational Insurance Brokers Limited Mr. Perry Adamba, Chief Executive Officer 58 NDL Insurance Consult Elizabeth Larmie (Mrs.), Managing Director 59 Novelty Insurance Brokers Limited Mr. Richard Y. Fenuku Doamekpor, Managing Director 60 Oak Insurance Brokers Mr. Bernard Ohemeng-Baah, Managing Director 61 Pacific Insurance Brokers Limited Mr. Kwasi Asante, Managing Director 62 Progressive Insurance Services Limited Mr. Francis Nsiah-Afriyie, Managing Director 63 Premier Brokers & Consultants Mr. Moses A. Darkoh, Managing Director
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No. NAME OF COMPANY CONTACT 64 Prudent Insurance Brokers Limited Ms. Adelaide Aboagye, Managing Director 65 Riscovery Limited Mr. Anthony Apaloo, Managing Director 66 Risk Solutions Limited Mr. Kwasi S. Fynn, Managing Director 67 Risk Management and Advisory Services Limited Mr. Larry Jiagge, Chief Executive Officer 68 Risk Partners Limited Mr. Ebo Morrison, Chief Executive Officer 69 Safeguard Insurance Brokers Ltd. Leila Kamara, Chief Executive Officer 70 Safety Insurance Brokers Ltd. Mrs. Lena Adu-Kofi, Chief Executive Officer 71 Saviour Insurance Brokers & Consultants Mr. Charles Antonio, Managing Director 72 Shield Insurance Brokers Limited Mr. Pius Boateng, Managing Director 73 Strategic Insurance Consult Limited Nii Adjri Sackey, Managing Director 74 Supreme Trust Insurance Brokers Limited Mr. Maxwell Seakomo, Managing Director 75 Trans-National Brokers Limited Mr. E. B. Nsiah, Managing Director 76 Trinity Insurance Brokers Limited. Mr. Harry Obuobi-Akyem Staudt, Managing Director 77 Tri-Star Insurance Services Limited Rev. Asante Marfo-Ahenkora, Managing Director 78 UGroup Limited Mr. David Osei-Manu, Executive Director Mr . Osei Kufuor (Daasebre Oguakuro Osei Bediako II, 79 Universal Insurance Consultants Ltd. Managing Director 80 Visal Insurance Brokers Vincent Sali-Dokpor, Managing Director 81 Willis Tower Watson Ghana Limited Mr. Mamadou Ndao, Managing Director 82 Worldwide Insurance Brokers Limited Mr. Isaac Yao Tedeku, Managing Director
LOSS ADJUSTING FIRMS
No. NAME OF COMPANY CONTACT 1 I AM Loss Adjusters (Gh.) Limited Engr David Oluniyi Odusanya, Managing Director 2 Manyo-Plange Associates Mr. E. A. Manyo-Plange, Managing Director 3 RCH Loss Adjusters Frederick Amui Oblitey , Managing Director
REINSURANCE BROKERS
No. NAME OF COMPANY CONTACT 1 KEK Reinsurance Brokers (Africa) Limited Mr. Shaibu Ali, Chief Executive Officer 2 Global Reinsurance Brokers Limited Philip Kofi Wemakor, Managing Director 3 Afro-Asian Reinsurance Brokers Ghana Limited Samuel Adoteye-Asare, Chief Executive Officer 4 Visal Reinsurance Brokers Gustav Siale, Chief Executive Officer
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TIONAL INSURANCE COMMI SS 2 18 ANNUAL REPORT & FINANCIAL STATEMENTS
IO N 2018 ANNUAL REPORT
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