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ANNUAL REPORT & FINANCIAL STATEMENTS

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ATION

AL INSU

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CE COM

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N2018 ANNUAL REPORT

www.nicgh.org

National Insurance Commission

2018 | ANNUAL REPORT

CONTENTS

Welcome 4Foreword 5Chairman’s Report 9Key Facts 12

The National Insurance CommissionCorporate Information 14

Ghana Insurance Market ReportEconomic Review 31Ghana Insurance Market Report (2014 – 2018) 34Financial & Ratio Analysis 64

Appendices2018 Financial Reports 109Fire Maintenance Fund 123List of Registered Insurance Companies 132List of Registered Reinsurance Companies 133List of Registered Broking Companies 134

2018 Annual ReportNational Insurance Commission

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WelcomeThe 2018 Annual Report of the National Insurance Commission (NIC) provides an overview of the insurance sector in Ghana as well as the activities of the Commission. The purpose of this report is to provide detailed market information about the insurance industry in Ghana, as at 2018, to help stakeholders make informed decisions in relation to the industry.

Unless otherwise stated, all the information in this report is based on the audited financial statements of the National Insurance Commission, the Insurance Companies and the Intermediary Firms as at the end of 2018. The following firms did not submit their audited information within the time specified and as such the information related to them are based on unaudited financial statements:

TABLE 1: FIRMS WHOSE INFORMATION ARE BASED ON UNAUDITED FINANCIAL STATEMENTS

Non-LifeBest 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

LifeHollard 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

BrokersAG & 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 Limited were placed under enforcement action for the year 2018. African Life Insurance Company Limited and Avance Life Insurance Company Limited voluntarily suspended their operations. The statistics for these firms may be incomplete.

It is worth pointing out that this publication is part of the suite of information produced by the NIC about

the insurance industry. Another set of information that the Commission publishes is a quarterly update on the insurance industry, which is published on the Commission’s website www.nicgh.org.

As opposed to the Annual Report which is based on audited financial statements, the quarterly summaries are based on unaudited quarterly information submitted by insurance companies and brokers.


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ForewordOn average, Africa contributes about 1.5% of the global total Gross Written Premium. In 2017, the Gross Written Premium in Africa was about USD 67billion. The figure for 2018 is not expected to be significantly different from this. South Africa alone, accounts for more than 60% of the premium generated in Africa. Excluding South Africa, the average insurance penetration rate in Africa is about 1%, this compares very poorly, to a global insurance Penetration Rate of about 5%. These figures paint a picture of an under-developed Insurance market in Africa.

The benefits of a well-developed Insurance market to a country is well researched and documented. These benefits can be grouped into:

1. Improvement in the Well-being and Welfare of inhabitants. Insurance improves the well-being and welfare of the individuals and households of a country because of the peace of mind 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.

2. Economic development. When companies have insurance, they are able to transfer risks and undertake productive risk. The aggregate effect of this is increase in investment and economic development in the country. The ability of insurance to pool resources and invest for the long-term makes the insurance sector a key stakeholder in the Capital Markets. This is the reason why in most countries with a developed insurance market, there is also a developed Capital Market.

Given the relatively underdeveloped state of the insurance market in Africa, the benefits of insurance as described above have not accrued to African countries.

In the table below we set out some key statistics of some African countries to give an overview of the economic environment and insurance market in these countries. These are based on 2017 data.

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TABLE 2: OVERVIEW OF ECONOMIC AND INSURANCE MARKET IN GHANA COMPARED TO OTHER AFRICAN COUNTRIES

Theme Indicator Ghana Nigeria Kenya Rwanda

Sub-Saharan Africa average

Socio-economic context

DemographicPopulation (millions) 29 189 50 12 -

Urban population (%) 55 50 27 17 40

Macroeconomy

GDP per capita (USD) 1,641 1,994 1,508 748 1,573

GDP growth rate (%) 9 0.8 4.9 6.1 2.5

Inflation (%) 12 16 6 7.2 5.4

Political economy

Government debt (% of GDP) 72 16.1 56 40.2 49.2

Mo Ibrahim Index of African Governance (index out of 100)

65

Rank: 8/54

48

Rank: 35/54

59

Rank: 13/54

64

Rank: 9/54

-

Financial inclusion

Access to accounts (%) 58 40 82 50 42.6

Mobile money account (%) 39 6 73 31 21

Smartphone ownership (% adults)

21 48 59 52 43

Insurance market context

Size

Penetration (GWP % GDP) 1.14 0.3 2.6 1.6 2.81

GWP (USD, billions) 0.6 1 2 0.14 60Insurer’s asset base (USD, billions) 1 3.2 5.1 0.46

Size of Life industry (% of total market premiums)

45 32 40 18 672

Value Claims ratio (%)

Life N/A 45 N/A 69

Non-Life 39 30 63 64

Performance Combined ratio (%)

Life N/A 112 N/A 108

Non-Life 133 125 102 114

Sources: Cenfri 2019

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

The current underdeveloped state of the insurance market in Africa, (excluding South Africa) can be attributed to the following:

Low Disposable Income

A statement that is commonly made about insurance is that, “insurance is sold and not bought”. This statement captures the fact that insurance is not something that most people would ordinarily buy. It is one of the last items that most people would buy, as such, when an

individual has a relatively low amount of disposable income, the individual will not prioritise the purchase of insurance. This is one of the main reasons why the purchase of insurance is low for the low-income segment of the population in most countries.

Poor Public Perception

Delays in the payment of claims and the repudiation of legitimate claims by insurance companies have led to a situation in which the public does not trust the

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insurance sector and has a poor perception in most African countries. Whilst public perception of insurance is improving, the image of the insurance industry to the ordinary Ghanaian is not very favourable. This reputation has not helped the efforts to increase the patronage of insurance.

Low Capacity of the Insurance Sector

In general, the greater the assets of an insurance company, the better its capacity to absorb risks. In most African countries, the total amount of assets held by the insurance sector is less than 5%. This situation limits the extent to which the insurance sector can underwrite mega risks.

Initiatives to Grow the Insurance Sector

Due to the issues discussed above, one of the major objectives of the Commission is to help facilitate the growth of the insurance industry in Ghana. The activities being undertaken by the Commission aimed at achieving significant growth in the insurance sector are discussed below.

Compulsory Insurance

One of the key activities that the Commission is engaged in, is the introduction of a number of new compulsory insurances as well as improving the enforcement of the current compulsory insurance. The new compulsory insurance products being considered are:

1. Group Life: All firms with more than, say, four (4) employees will be required to have a group life policy of say five times annual basic salary for its workers.

2. Workmen’s Compensation: Liabilities accruing from PNDC law 187 will have to be insured.

3. Professional Indemnity: Professionals such as doctors, nurses, engineers, architects etc. to have Professional Indemnity cover.

4. Marine – Cargo & Hull: Compulsory for all goods being imported into Ghana.

5. Commercial building: Expand current law to include government property.

6. Public Liability Insurance.

The Commission is engaging other bodies such as the Ghana Shippers Authority, Ghana Revenue Authority, Accra Metropolitan Authority, Ghana Police Service and the Driver and Vehicle Licensing Authority (DVLA) to help with the implementation of the current compulsory insurance.

Greater Local Participation in the Insurance of Oil and Gas Business

Another initiative the Commission is pursuing is to

help facilitate greater participation of local insurers, in the Insurance of Oil and Gas business. The regulations governing the operations of Ghana Oil and Gas Insurance Pool (GOGIP) have been amended to allow for greater local participation. A circular to this effect has been sent to the industry. The Commission expects this change to lead to about $100m growth in the local Oil and Gas written premium per annum effective 2019.

Tackle the Challenges Facing Motor Insurance

Motor Insurance accounts for circa 25% of the total premium in the Insurance industry. However, it is faced with a number of challenges including:

- Significant number of uninsured vehicles. DVLA reports that it has registered over 2.2 million vehicles and issues about 1.6 million road worthy certificates each year. However, NIC sells only 1 million motor stickers. This shows that there is a large number of uninsured vehicles or fake motor insurance stickers in circulation.

- Section 44 of the Insurance Act, requires that the Commission together with the industry, sets out limits on third party injury claims. However, this is yet to be done and has led to relatively high awards in relation to third party injury claims by the court.

- Widespread undercutting / under-pricing in Motor Insurance Premiums.

To help address the challenges above, the Commission is working on the following projects:

- Implementation of the Motor Insurance Database – this will be a central database that the validity of a Motor Insurance Sticker can be checked against. The checks can be done through a text message or a QR reader. Discussions are ongoing with DVLA to ensure that checks are made about the validity of an insurance cover, before DVLA register or undertakes a road worthy assessment. This will help reduce the incidence of fake and uninsured vehicles.

- Capping third party motor and death claims – The Commission is working with the industry to set out limits for third party motor and death claims.

- Introduction of the enhanced NCD – The Commission has started the implementation of the enhanced No Claims Discount (NCD). This initiative is meant to help reduce undercutting in third party Motor Insurance.

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Memorandum of Understanding with Ghana Shippers Authority

The Commission is in discussions with the Ghana Shippers Authority to draft a protocol between the Commission and Ghana Shippers’ Authority on Marine Insurance. This will be similar to the protocol that exists between the Commission and the Petroleum Commission on the insurance of Oil and Gas business. The aim of the protocol on Marine Insurance is to collaborate with the Ghana Shippers Authority to promote the uptake of Marine Insurance.

Other Activities to promote the growth of Insurance

Some of the other activities being undertaken by the Commission to help grow the insurance industry are:

• Promote the Growth of Annuity Market – National Pension Regulatory Authority reports that private pension schemes are more than 4% of GDP. This and the fact that that there are about 2 million Ghanaians who are nearing retirement means that there is a market for retirees who need annuities to provide them with regular and reliable income. The Commission is working to build the capacity of the insurance industry to develop and sell annuities.

Work is also ongoing to collaborate with relevant stakeholders including government to develop a market for annuities.

• Promote Agricultural Insurance - The Ghana Agricultural Insurance Pool (GAIP) has been in existence for about five years. The take-up of Agricultural Insurance has not been as expected. The insurance industry, principally, the Ghana Insurers Association (GIA) have been undertaking a yeo-man task of subsidising Agricultural insurance in Ghana with an average of about half a million cedis each year. The Commission in its effort to develop Agricultural insurance in Ghana, has secured a grant from Alliance for a Green Revolution in 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.

• Promote Insurance of Micro Small Medium Enterprise (MSMEs) – One of the key activities that the Commission is working on is the promotion of the insurance of MSMEs. The insurance sector currently serves the Micro Insurance and the corporate segment of the country reasonably well. However, there has not been specific attention paid to the insurance of MSMEs. Ghana Statistical Services estimates that smaller businesses in Ghana employ about 2.6 million people and contribute over 70% of revenue generated by local Ghanaian firms. However, not a lot of these small business have insurance. The Commission is working on a strategy that will make insurance more easily assessible to MSMEs.

• Improving Public Trust in Insurance - The Commission has obtained funding from the German Development Agency (GIZ), to undertake a survey of the insurance industry. This survey will help the Commission come up with an Insurance Awareness Index and an Insurance Confidence Index. These indices, which will be updated on a regular basis, will help the Commission assess the awareness of insurance and the trend of the public trust in the insurance sector. Based on the results of the indices in a given locality, a plan of action can be drawn up to address specific issues that the public has in relation to insurance. Other activities related to improving public trust in insurance are:

o Greater enforcement of Claims Management Guidelines. The Commission will undertake more inspections to check adherence to Claims Management Guidelines in the next quarters.

o Continue to resource regional offices to undertake more public education on insurance.


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Chairman’s ReportChallenges 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 Assets

The above challenges notwithstanding, total gross premium income grew by a decent 21% from GHC2.4 billion in 2017 to GHC 2.9 billion in 2018. This can be compared to a 26% growth in 2017 over 2016. Industry total assets similarly increased from GHC 5.4 billion to GHC 6.2 billion over the same period. In view of the slowdown in growth rates and the impairment of assets, total corporate taxes paid by the industry declined to GHC 36 million down from GHC 50 million in 2017.

Insurance Penetration

Despite the 21% growth in the industry Gross Written Premiums, the insurance penetration rate reduced from 1.12% to 1%. The reduction in the penetration rate can be attributed to the rebasing of the Ghanaian economy in 2018. It is however, important to note that this rate excludes pensions and health insurance, which are not regulated by the NIC. Since pensions and health insurance are counted as part of the insurance industry in most countries, an effort was made to find out what the penetration rate will look like if the pensions and health insurance figures are taken into account. The result indicated that the penetration rate will be about 3%.

The NIC 4-Year Strategic Plan

Last year, my report comprehensively addressed the challenges facing the insurance industry which tend to affect its profitability and growth. I did also mention that the preparation of a four-year strategic plan was in progress in which measures to address the challenges will be outlined. The four-year strategic plan of the Commission was finalised and approved in August 2018. The overarching objective of the plan is to significantly grow the insurance penetration. Several measures (on

both demand and supply side) have been outlined to be taken to achieve this objective. These include the following;

• Construction and implementation of an Electronic Motor Insurance Database to stem the tide of fake motor insurance stickers and uninsured vehicles both of which expose the public to significant risk. The electronic motor insurance database will store information on all motor insurance policies with an interface with DVLA. It will be used to confirm the veracity of all motor insurance policies. The database will thereby also help to shore up the motor insurance premiums. It is worth noting that motor insurance accounts for about 35% of non-life premiums.

• The passage of a new Insurance Bill to give better powers to the Commission to ensure a safe, sound and stable insurance market thereby protecting the policyholder and other stakeholders. The Bill when passed into Act will also contain relevant provisions to help improve the weak segments of the industry such as agricultural and marine insurance. It will also contain requirements on some compulsory insurances such as Group Life and Public Liability to protect innocent third parties who may be affected by other peoples’ actions and inactions.

• The plan targets areas such as marine and agricultural insurance as well as annuities to grow the market gross premiums. Even though Ghana’s economy is heavily import dependent, its marine insurance industry is small and struggling. This means that most of the numerous items ranging from food, clothing, automobiles, household and


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Chairman’s Reportindustrial equipment that are imported into the country are all insured overseas. Usually, the terms and conditions of such overseas insurances are not known to the importers and they are hardly able to claim any compensation when they suffer losses. Agriculture is the biggest employer and contributes significantly to the nation’s GDP. However, it lacks the necessary insurance protection against the harsh risks of production. Lastly a vibrant annuities market will provide prudent options for retirees’ lump sum benefits whilst facilitating patient long term local funds for national development.

• In order to achieve robust, sound, safe and stable insurance market, measures have also been outlined in the strategic plan to improve supervisory effectiveness. An overall sub-objective in this area will be to improve compliance with the IAIS Insurance Core Principles. This has been taken into account in drafting the new Insurance Bill. Related to this, the Minimum Capital Requirements for insurance entities will be reviewed to ensure that insurance companies have what it takes to operate efficiently and are adequately capitalized to write and retain large businesses and play their expected roles in the economy. The Commission has been working on a Risk Based Supervisory framework for some time. This is expected to be completed by issuing Supervisory Risk Ratings for each company which will then trigger a commensurate intervention by the NIC. A risk Based Capital framework will also be implemented to link capital requirements to the nature and levels of risks inherent in the business and activities of insurance companies. A Market Conduct Supervisory framework will also be designed and implemented to ensure that insurance companies deal with policyholders fairly and transparently.

• The measures outlined above require adequate capacity in terms of skill and know-how. There are therefore plans to collaborate with relevant institutions to build capacity of the NIC, the industry and relevant bodies in such areas as Accounting and Audit, Actuarial practices and Governance and Risk Management. There are measures to identify and design relevant courses and other long term measures to significantly improve on risk management, corporate governance, actuarial techniques, financial reporting and other relevant areas to improve efficiency, profitability and the quality of financial reporting for insurance entities.

• Insurance awareness and confidence index - under the plan, the Commission plans to undertake effective public education to improve awareness and trust among the public and thereby boost demand for insurance. An index for measuring public awareness and confidence in insurance will also be created and regularly updated.

• Training of insurance agents – Insurance agents continue to be the main distribution channel for the insurance industry. The Commission seeks to ensure that insurance agents are as professional as possible and are very knowledgeable in insurance. To this end, the Commission, through the Ghana Insurance College is organising training for existing and prospective agents.

• The strategic plan also includes measures to improve the efficiency and effectiveness of the Commission. For example, the Commission will implement a Risk Management Framework to help identify risks that can hinder the achievement of regulatory objectives and take steps to mitigate same. A modern Performance Management System will also be implemented to align the Commission’s strategic objectives to annual budgeted activities and staff performance and remuneration. The current regional branch offices of the Commission in Kumasi, Tamale, Takoradi and Ho will be re-tooled and resourced whilst additional offices will be opened in the regions in which the Commission currently does not have offices. This will enable the Commission take its services closer to the people who need them.

The Commission plans to deploy technology and automation to improve its effectiveness. Apart from the Motor Insurance Database mentioned earlier on, the Commission is also working to upgrade its supervisory system to enable insurance companies submit almost all their regulatory applications and reports electronically. Currently only the prudential returns are submitted electronically. Again, the Commission will construct and implement an electronic Claims and Complaints Management System to improve the efficiency of claims management and payment by all insurance companies.

Progress made so far

Work has started on most of the initiatives outlined above. The procurement of the consultants for the Motor Insurance Database has been completed paving the


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Chairman’s Reportway for the commencement of work. The database is expected to be implemented before the end of 2019.

The drafting of the Insurance Bill and consultations with various stakeholders on same have been completed. The next stage is submission to Cabinet for approval after which it will go to Parliament for consideration and passage.

The Commission is working in consultation with relevant stakeholders such as the Shippers Authority, the Institute of Ship Brokers and Customs to address the marine insurance challenge. The Commission with financial assistance from the Alliance for Green Revolution Africa (AGRA), has contracted consultants to develop a proposed Agricultural Insurance policy to be submitted to the government for approval, adoption and implementation. It is expected that the policy will be submitted to the government by the third quarter of 2019. The NIC has published requirements to be met by Life insurance companies desirous of writing annuities. A couple of training workshops have also been held to build the capacity of insurance companies on annuities.

In terms of improvements in the regulatory framework, the Commission has already published the new Minimum Capital Requirements to be met by all regulated insurance entities by June 2021 in order to ensure a financially sound and strong insurance industry. The Commission has also circulated an exposure draft on a Risk Based Capital Framework to solicit comment from various stakeholders. The target is to have the Risk Based Capital regime fully implemented by the first quarter of 2021.

In the area of capacity building, the Commission has started sponsoring high quality training programmes for the industry. In 2018, the Commission collaborated with the Ghana Insurance College to organise five residential training programmes in such areas as Risk Management and Corporate Governance; Financial Reporting and Auditing; and Marketing and Insurance Operations free of charge for insurance, reinsurance and broking companies. This is expected to continue into the foreseeable future. Towards this end, the Commission is planning the establishment of the Insurance Education Fund to cater for both capacity building of the industry and the education of the public on insurance. Work is on-going on the Insurance Awareness and Confidence indices. This is expected to be completed in September 2019.

Some progress has also been made in the effort to improve the efficiency of the Commission. A detailed report on this, will be made in the 2019 annual report.

On behalf of the Commission, I would like to express my sincere gratitude to our development partners,

especially GIZ and AGRA who have contributed greatly to the progress made so far.

Outlook for 2019 and beyond

The Commission will complete work on, and implement the Motor Insurance Database in 2019. This is expected to significantly minimise the fake motor insurance stickers and make it easy for the police to check uninsured vehicles on our roads. The Commission will also make significant progress on the new Insurance Bill which is expected to be passed into law by Parliament by the end of 2019 or early 2020.

In order to take the services of the Commission and the protection of the policyholder to the doorsteps of the people of Ghana no matter where they are located, the Commission will open three new regional offices in Cape Coast, Koforidua and Sunyani in 2019 and work towards having an office in all regional capital by 2021.

In pursuit of a stronger and financially sound market, the Commission will announce new Minimum Capital Requirements by the second quarter of 2019. An initial exposure draft on a Risk Based Capital Framework will also be issued in 2019 to solicit comments from all stakeholders towards an eventual implementation of a Risk Based Capital regime by 2021.

Collaborations with Government, National Pensions Regulatory Authority and other stakeholders for the development of an effective annuities market will continue in 2019 and beyond.

Conclusion

As discussed above, appropriate strategies and measures aimed at addressing the challenges of the insurance industry have been identified and carefully selected for implementation. The implementation of these measures is expected to generate significant growth in specified lines of insurance business such as Marine, Annuities, Group Life, Motor and Agricultural insurance. The measures are also expected to resolve the major supply side bottlenecks, improve capitalisation, financial soundness and hence efficiency of insurance companies and significantly improve consumer awareness and confidence. Not the least, supervisory capacity and efficiency will also be augmented.

However, these measures will not achieve the desired outcome, without the active support of all stakeholders, especially the insurance industry. These together are expected to substantially grow the gross premiums, asset base and profitability of the insurance industry to enable it play its expected role in the development of the Ghanaian economy.


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Key Facts of the Insurance Industry - 2018

The total assetsof the insurance

industry is GHS 6.2 bn

- Life sector – GHS3.1bn- Non-Life Sector 2.4bn- Reinsurance -GHS0.7bn

GHS 6.2bn

30%

GHS1.9m

12,000

GHS 1.1m

GHS 255m

GHS 36m

GHS 202m

GHS 2.9bn

Proportion of Ghanaians with insurance cover

The estimated number of people employed in the insurance industry.

This is made up of agents, brokers and staff of

insurers and reinsurers

Average daily benefit paid by Life insurers

Average daily claims incurred by Non-Life

companies.

The total reinsurance

premium for 2018

The total corporate tax for 2018

The total profit for 2018 in the insurance

industry

The total premium for 2018 in the insurance

industry.

Life – GHS1.3bnNon – Life – GHS 1.3bnReinsurance – 0.3bn


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National Insurance Commission

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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) Limited Zenith Bank (Ghana) Limited

Cal Bank Limited Consolidated Bank (Ghana) Limited

GCB Bank Limited Stanbic Bank (Ghana) Limited

Corporate Information

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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-enced Chartered Accountant and Chartered Global Management Accountant with solid technical knowledge, excellent communi-cation skills and strong analytical skills. He holds a post graduate

diploma in Strategic Financial Management from Kingston University in the UK. His accountancy ca-reer commenced in Liberia in 1983 where he had the opportunity to work in audit and training, acquiring extensive experience in the audit of large compa-nies, small and medium enterprises sector and con-sulting for NGOs, such as USAID. He has previously held senior accountancy positions in the public sector and audit firms in the UK as Head of Manage-ment Accounts and Deputy Finance Manager where

he led in several project implementations such as Material Resource Planning, Activity Based Costing System, Cost Reduction Schemes, Profit Improve-ment and Customer Profitability Analysis. Since 2002, Ray has been working as Director and Head of the Tax Department at Ray Ankrah and Associates, a firm of Chartered Accountants and Tax Consultants in the UK providing accountancy services to own-er-managed business clients and tax planning ser-vices to clients with cross-border transactions. He is a member of the Institute of Chartered Accountants of Ghana and a Fellow of the Chartered Institute of Management Accountants (UK). He is an effective team player and an influential leader who is driven by a passion for the cause.

Mr. Justice Yaw Ofori – Member, Commissioner of Insurance

Mr. Justice Ofori holds an In-ternational Executive MBA and a B.A. Honours from the Univer-sity of Ghana (Political Science Major). He is a Fellow of the In-surance Institute of Ghana and

a Chartered Insurance Professional of the Insurance Institute of Canada. Prior to his appointment, he was the Director of the Ghana Insurance College. Mr. Ofori has a wide range of experience in both teach-ing and practicing since qualifying as a chartered insurer.

Professor Bill Buenar Puplampu – Member

Prof. Puplampu is the Vice Chancellor of Central Univer-sity. He is an academic, prac-tising Chartered Psychologist and member of the British Psy-chological Society and Africa Academy of Management, with

specialization in Occupational and Organisational Psychology. He holds a PhD in Organisational Be-haviour and MSc in Occupational Psychology both from the University of East London and BA in Psy-chology from the University of Ghana. He has over 25 years of research, teaching-academic, consulting and practise experience in the application of orga-nizational psychology to Management, Corporate

Governance, Human Resource Management and Organisational Behaviour. He has served on various Boards including Ghana Psychology Council, Mer-chant Bank and Databank Educational Investment Fund. He is a member of the National Development Planning Commission and a Fellow of the Ghana Academy of Arts and Sciences. He has taught at the University of Westminster, University of East London (both in the UK), and the University of Ghana where he was Head of the Department of Organisation & HRM at the Business School. He served as Dean of the Central Business School (Central University) and was later appointed as the Pro Vice Chancellor for Academic Affairs.

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Mr. Sampson Akligoh – Member

Mr. Akligoh is the Director of the Financial Sector Division of the Ministry of Finance. Prior to this role, he worked in the financial services industry in an advisory and asset management firm as an economist. Sampson was the

Managing Director of InvestCorp, a financial services firm in Accra, Ghana. In addition, he served as a Vice President at Databank where he played leading roles as an Economist, Head of Research and as a Fixed Income Strategist. He also worked at SIC Financial

Services Limited and with ADC African Development Corporation AG in Frankfurt, which was acquired by Atlas Mara in 2014. Sampson also previously served as an Adjunct lecturer in International Economics at Ashesi University College in 2014. He holds a BA in Economics and Law (First Class Honours) from the Kwame Nkrumah University of Science & Technology in Ghana, and a Master’s Degree in Economic Policy and Corporate Strategy from the Maastricht School of Management in the Netherlands.

Mr. Emmanuel Amofa – Member

Mr. Amofa is the Founder and Managing Partner of Amofa & Partners. His areas of expertise and interest include Corporate Law, Investment Law and Ne-gotiation, Civil Litigation, Land Law, International Commercial

Law, International Business Transactions, Negoti-ation of Commercial Transactions, Arbitration and Mediation, Petroleum and Energy Law, Legal Sector Reform, Insurance Law, Privatisation and Banking Law.

He is also the Administrator of the Ghana Arbitration Centre, since its incorporation in 1996. In 2003, he was awarded a certificate in International Commer-cial Arbitration by the International Law Institute, Washington, DC and Georgetown University, Wash-ington, DC.

He has also been appointed and acted as Co-arbitra-tor and Sole arbitrator in a number of domestic ar-bitrations held under the Ghana Alternative Dispute Resolution Act, 2010 (Act 798) and under the Rules of the Ghana Arbitration Centre.

He is a member of the Ghana Bar Association and a Panel member of Arbitrators on International Centre for Settlement of Investment Disputes, Washington DC.

He is a lecturer in Alternative Dispute Resolution at the Ghana School of Law and an Adjunct Lecturer of the University of Ghana Law School, Legon. He is the country contributor for Ghana on contemporary law on arbitration in Ghana published in Arbitration in Africa: A Practitioner’s Guide, Kluwer Law Interna-tional, 2013. Authoured Chapter on Ghana Arbitra-tion Centre in Onyema Emilia (gen ed.) The Trans-formation of Arbitration in Africa: The Role of Arbitral Institutions.

Mr. Kwame-Gazo Agbenyadzie – Member

Mr. Agbenyadzie is a Chartered Insurer by profession, an Associate of the Chartered Insurance Institute, London, a Fellow of the Insurance Institute of Ghana, the Actuarial Society of Ghana and the West Africa

Insurance Institute. He holds an BSc Hons. and EMBA-Finance Option from the University of Ghana,

a Post Graduate Diploma in Actuarial Science from City University, London; Diploma in Insurance and Risk Management from the West African Insurance Institute, Monrovia, Liberia. Kwame-Gazo has over three decades of experience in insurance. He was the Chief Executive Officer of Metropolitan Insurance now Hollard Insurance Ghana and had previously held various managerial positions with the State Insurance Company.

Board of Directors

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Mrs. Geta Striggner-Quartey – Member

Mrs. Striggner-Quartey has over 30 years work experience encompassing an integrated legal practice incorporating corporate, commercial and liti-gation practice.

She has held senior management level positions in business administration, public policy, investment

banking and non-bank financial services, regulatory compliance in the securities industry. She now works in the telecommunications industry. Geta’s strong professional and communication skills have been successfully harnessed to build productive relation-ships and further both organizational and personal goals.

Board of Directors

Mrs. Naa Shormeh Gyang – Board Secretary

Mrs. Gyang is a Barrister at Law and a Solicitor of the Supreme Court of Ghana with over 25 years Corporate Law practice. She is a member of the Ghana Bar Association. Prior to joining

the NIC in 2018, she worked with Merchant Bank Ghana Limited now Universal Merchant Bank in key management positions.

Mrs. Gyang provides support on the Legal, Regulatory and Governance Functions of the Commission.


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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

9. Dr. Mahama Wayo – Head, Finance

Senior Management

1

5

9

2

6

3

7

4

8

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Operations

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Licensing

In 2018, a total of five new companies were licenced by the Commission to operate in the insurance market in Ghana. These were:

• One Non-Life company

• Two Insurance Brokers and

• Two Reinsurance Brokers.

The chart below sets out the number and categories of regulated entities for 2018 which stood at 145 (excluding Reinsurance contact offices).

Figure 1: Number of regulated entities as at December 2018

The companies that were licenced in 2018 are:

Serene Insurance Company Limited (Non-Life insurance company)

Alhet Insurance Brokers (Insurance Broker)

J in G Insurance Brokers (Insurance Broker)

Visal Reinsurance Broker (Reinsurance Broker)

Global Reinsurance Broker (Reinsurance Broker)

Circulars and Guidelines Issued

The NIC as part of its quest to ensure continued financial soundness of regulated entities and an orderly insurance market, issued a number of circulars and guidelines to regulated entities. Fundamentally, these guidelines 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 circulars are set out below:

Disclosure of Insurance Brokers in Good Standing- In order to improve upon the transparency and market discipline in the insurance industry the NIC issued a circular notifying insurance companies of quarterly publications on insurance brokers in good standing.

National Identification Authority Database- The NIC issued a circular to the insurance industry informing them of the steps the Commission is taking to enable (re) insurance companies and (re) insurance intermediaries to access information stored in the National Identification Database for underwriting and claims investigation purposes at a fee.

Criteria to be met by Annuity Underwriters in Ghana - In seeking to promote the development of the annuity 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.

Roadmap for implementation of IFRS 9 and 17- To ensure that the insurance industry is ready for the implementation of IFRS 9 and 17, the Commission has produced a road map to help insurance companies with the implementation of the IFRS 9 and 17.

Compulsory Fire Insurance Enforcement

The National Taskforce made up of officers from the National Insurance Commission, the Ghana Police Service and the Ghana National Fire Service set up to enforce the Compulsory Fire Insurance, continued to work in 2018. The team undertook several enforcement exercises in Accra, Kumasi, Takoradi, Tamale and Ho

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during the period under consideration. They inspected 2088 commercial buildings to ascertain evidence of compulsory fire insurance.

Out of the 2,088 buildings inspected, the owners of 396 buildings had procured compulsory fire insurance policies while the remaining 1,692 had not as required under the Law. The appropriate remedial actions have been taken.

Penalties and Fines

The Commission levied penalties against 28 Non-Life insurance companies, two (2) Life companies, and 23 brokers for various infractions to ensure compliance with the provisions of the Insurance Act 2006, (Act 724) and NIC Directives.

Area Offices

The objective of the Area Offices is to bring the activities of the NIC closer to the public and to encourage public patronage of insurance business. The Commission currently has four Area Offices.

The Kumasi office catered for Ashanti and Brong-Ahafo Regions; Tamale, the Northern and Upper Regions; Ho, the Volta and Eastern parts of the country; whereas Takoradi office served the Western and Central Regions. The offices carried out their core activities of receiving complaints from the public and resolving them. Where the complaints were beyond their capacity, they referred them to the head office in Accra.

Court Cases

Swaytel Insurance Company - Unlicensed Insurance Company

Swaytel Insurance Company was an unlicensed insurance company operating in Swedru.

The suspect was arrested, put before the Law Courts, found guilty and convicted on all seven counts. The counts included operating an unlicensed insurance company, forging of fake Motor Insurance Stickers, and defrauding by false pretense.

The Special Investigations Unit of the NIC was instrumental in the arrest and prosecution of the accused.

Policyholders of Esich Life vs. Esich Life

Two policyholders of Esich Life started a court action against the Company, due to delays in the payment of the maturity proceeds of their policy.

The NIC was joined in the suit against Esich Life. The court awarded judgement against NIC and Esich Life.

New Products Approved in 2018

Thirty-five new products were approved by the Commission in 2018 as opposed to twenty-seven in 2017. Most of the new products were for the Life 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 relating to a number of complaints received from the public and organizations against regulated insurance entities. The Commission received a total of 1,069 complaints in 2018 as compared to 291 recorded in 2017. A significant proportion of the complaints received in 2018 was related to Esich Life. The total number of complaints relating to this Company was 440.

Out of the 629 complaints that were received in 2018,

that were not related to Esich Life, 589 cases were resolved through the intervention of the Commission.

In terms of intra-sectoral split, 776 and 293 complaints were made against Life and Non-Life insurance companies respectively. In terms of regional distribution, the Greater Accra Region recorded the highest number of complaints, that is 603 (46.8%), whilst the Ho Area had the least complaints of 9 (1.16%). The graph below 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 related to motor claims. These were complaints related to:

• Repudiation of claims• Delay in settlement of claims• Dispute over quantum, and • Delay in payments of settled claims.

For the Life insurance sector the main issues that customers complained about were:

• Unauthorised premium deductions• Perceived low surrender values

• delay in processing matured policies for payment and

• delay in returning refund of wrongful deductions.

Areas of complaints included insurance company’s failure to cease deductions after insurance policy is surrendered and also benefits promised by insurers differed from benefits contained in policy documents.

The table below shows the total number of complaints against both Life and Non-Life insurance companies.

TABLE 4: SUMMARY OF COMPLAINTS BY SECTOR

COMPLAINTSCompanies 2014 2015 2016 2017 2018Life insurance companies 193 217 258 188 776Non-Life insurance companies 327 222 94 68 293Total 520 439 352 256 1,069Others (uninsured vehicles) 35 47 2 35 -

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For Life Insurance, Esich Life recorded the highest number of complaints (440, 56.7%) with no complaints from First Insurance Company. For Non-Life insurance, Star Assurance recorded the highest complaints (56, 19.1%) with Multi Insurance Company Ltd recording no complaints.

The Complaints unit of NIC continuously engage industry stakeholders in order to address concerns of parties in the settlement of claims and prompt resolution of complaints. The tables below show the distribution of complaints by companies.

TABLE 5: COMPLAINTS AGAINST NON-LIFE INSURANCE COMPANIES

CompaniesYear

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

CompaniesYear

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 (MCF) is overseen by a Committee made up of officers from the Commission and insurance companies that underwrite motor insurance business. The purpose of the fund is to provide some level of compensation to persons or relations of persons who were injured or die in motor accidents involving Hit and Run and Uninsured Vehicles. In addition to the this, the MCF, provides some compensation for the public in cases of Breach of Policy

Conditions, such as Change of Ownership, inappropriate drivers licence and driving without license which results in the repudiation of claims by insurers.

The Awards Sub-Committee held eight (8) sittings during which it interviewed about 100 applicants. The applicants who were successful, were awarded a total of GHS 1.2m from the MCF.

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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 active role in 2018 following the appointment of new committee members to manage its operations. In 2018, the Client Rescue Fund held four meetings during which it took far reaching decisions that has helped improve the fortunes of the Fund. Finance and technical sub-committees were formed. These sub-committees

produced recommendations aimed at streamlining the financial and technical activities of the Fund. The technical subcommittee, for example, developed an operational guidelines to serve as a blue print to determine the formula for disbursing monies from the Fund in case an insurance company is in financial 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 engaging reinsurers who are currently not contributing

to the Fund to reconsider their decision because of the enormous benefits to be derived.

Fire Maintenance Fund

As required under section 185 of the Insurance Act of 2006, (Act 724) the NIC established the Fire Fund under the Compulsory Fire Insurance for Private Commercial Buildings and those Under Construction.

The NIC continued to create public awareness of the Compulsory Fire Insurance through its public education activities. The table below summarises the financial 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 Financing of Terrorism (AML/CFT)

Following the 2nd round of Ghana’s mutual evaluation exercise by the Intergovernmental-Action Group Against Money Laundering in West Africa (GIABA) in 2016, and subsequent adoption of its report in May 2017, a follow-up report was issued in June 2018. The report assessed Ghana’s progress in addressing the Technical Compliance (TC) deficiencies identified by GIABA. It also considered progress in implementing new requirements relating to Financial Action Task Force (FATF) Recommendations which had been revised since the Mutual Evaluation Report (MER) was adopted, specifically, Recommendations 7 and 8.

Ghana had made significant progress in addressing the identified technical compliance deficiencies in the MER in relation to the FATF Recommendations. This led to a positive re-rating of some of the recommendations. Consequently, the country was placed on ‘enhanced follow-up’ status.

FATF as part on its ongoing review of compliance with the AML/CFT standards in October 2018, added Ghana to the list of jurisdictions that have strategic AML/CFT deficiencies. An Action Plan has since been developed to try and resolve these deficiencies. The government has committed to working with FATF and GIABA to strengthen the effectiveness of the AML/CFT regime and address any related technical deficiencies.

Some of the objectives of the Action Plan are as follows:

1) Develop and implement a comprehensive national AML/CFT policy based on the risks identified in the National Risk Assessment (NRA), including measures to mitigate ML/TF risks associated with the legal persons.

2) Improve risk-based supervision, by enhancing the capacity of regulators as well as the awareness of the private sector.

3) Ensure the timely access to adequate, accurate and current basic and beneficial ownership information.

4) Ensure adequate resources are allocated to the Financial Intelligence Centre (FIC) to enable it focus on dealing with risks identified in the NRA.

5) Ensure adequate and effective investigation and prosecution of Terrorism Financing crimes.

6) Apply a risk-based approach in monitoring non-profit organizations.

Review of Anti-Money Laundering and Combating the Financing of Terrorism guidelines

Following the review of Financial Action Task Force (FATF) 40 recommendations in 2012 and the subsequent amendment of the Anti-Terrorism and Anti-Money Laundering (AML) Acts in 2012 and 2014 respectively, it became necessary that the insurance industry revised its guidelines which were issued in 2012 to reflect the changes and additions in these laws.

A team comprising staff of the NIC and industry representatives was constituted to review the guidelines. The document has since been concluded and approved for implementation.

• ADMINISTRATIVE SANCTION

One of the concerns raised during the GIABA Mutual Evaluation in 2016 was the absence of AML/CFT Administrative Sanctions which was thought to have impeded effective enforcement of the insurance sector’s AML/CFT regime. GIABA therefore recommended the introduction of an Administrative Sanctions to enforce compliance in the sector.

A committee was set up by the NIC and an Administrative Sanctions document was drafted and discussed with the insurance companies. The provisions are punitive enough to check compliance. However, its implementation was deferred until the passage of the new Insurance bill.

• TECHNICAL ASSISTANCE

The International Monetary Fund (IMF) team continued to provide technical assistance to the AML Unit. Offsite supervisory tools have been developed to enable Life companies (for now) submit quarterly returns for analysis.

In addition, on-site examination procedures and a draft supervisory manual are being worked on. The manual when finalised will contain all relevant information required by the supervisor to carry out AML/CFT Risk Based Supervision on insurance and broking companies.

• INHERENT RISK ANALYSIS

Life companies continued to submit quarterly returns via the NIC portal. Information was 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

- Product and Services

- Channels of Distribution

- Geographic Operations

Structural factors refer to the systems that a company has to enable it adequately mitigate its business and other risks. The information is then analysed to determine the composite risk of each company which is ranked in three (3) levels namely; High, Medium and Low risks. Companies with high composite risk scores were given priority in terms of onsite inspections.

• ONSITE INSPECTIONS

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

(STRs) and the high turnover of Anti-Money Laundering Reporting Officers (AMLROs).

• REGULATORS FORUM

The regulators forum which comprises financial sector regulators - Bank of Ghana (BoG), National Insurance Commission (NIC) and Securities and Exchange Commission (SEC) - with a mandate to foster cooperation and facilitate efforts at combating ML/TF met three (3) times within the period.

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 issues.

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Ghana Insurance Market Report

(2014 – 2018)

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ECONOMIC REVIEW

Global Economy

The last decade has been punctuated by series of broad-based economic crises and negative shocks, starting with the global financial crisis of 2008-2009, followed by the European sovereign debt crisis of 2010-2012 and the global commodity price realignments of 2014-2016. As these crises and the headwinds that accompanied them subdue, the world economy has strengthened, offering greater scope to reorient policy towards long-term issues. This, hopefully will ensure sustainable economic, social and environmental developments.

In 2017, global economic growth is estimated to have reached 3.0 percent, a significant improvement compared to the growth rate of 2.4 percent that was experienced in 2016. Two-thirds of countries worldwide experienced stronger growth in 2017 than in 2016. At the global level, growth in 2018 reached 3.1 percent compared to 3.0 percent in 2017. This was a synchronized growth, in that all the regions in the world experienced growth. The Eurozone grew by 2.0 percent in 2018, down from 2.5 percent in 2017. Italy was a notable exception in the Eurozone as it experienced a zero percent growth. The USA continued to grow on the back of fiscal stimulus. The US economy grew by 2.9 percent in 2018 due to strong fundamentals and increased fiscal stimulus. However, the growth is expected to ease to 2.5 percent in 2019.

It is worth noting US trade hostilities with China and Europe, uncertainty over Brexit and political instability in countries including Brazil was a drag on growth. The US implemented its increased regime of tariffs on Chinese products in 2018 by increasing tariffs on a whopping USD200 billion worth of Chinese products. The Chinese government also retaliated with tariffs on US products entering their market. Most economists are of the view that the US-China trade hostilities will not be beneficial to both parties and the global economy at large. (Atradius: Global Economic Outlook, 2018).

The gross domestic product (GDP) growth across 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 remained the growth leader with a growth of 6.0 percent in 2018, but is expected to ease to 5.6 percent in 2019.

Sub Saharan Africa Economy

Growth in the Sub-Saharan Africa (SSA), even though

relatively low, increased from 2.6 percent in 2017 to 2.7 percent in 2018. This was lower than expected, partly due to weaknesses in the main large economies such as Nigeria, Angola and South Africa. The SSA region experienced a difficult external environment in 2018 due to moderating global trade, tighter financial conditions, and a stronger US dollar. Growth in Nigeria increased up to 1.9 percent but oil production fell during the mid-year and non-oil activity was dampened by lacklustre consumer demand and disputes that disrupted crop production. Angola, the region’s second largest oil producer had its economy contracting by 1.8 percent as oil production shrank. The South African economy grew by 0.9 percent in 2018 as it emerged from a technical recession in the second half of the year, in part due to improved activity in agriculture and manufacturing. However, growth remained subdued as challenges in the mining sector and weak construction activity were compounded by policy uncertainty and low business confidence.

Also, economies of the Central African Economic and Monetary Community benefitted from an increase in oil production, and oil prices that were higher in 2018. Economic activity in non-resource-intensive countries was robust, supported by agricultural production and services, household consumption and public investment. A number of countries in the Economic Community of West African States (ECOWAS) grew at 6 percent or more, including Benin, Burkina Faso, Cote d’Ivoire, Senegal and Ghana. In spite of this growth by some ECOWAS countries, balance of payments financing became more difficult against the backdrop of rising external borrowing costs and weakening capital flows. Currencies in the region depreciated as the US dollar strengthened and as investor sentiment toward emerging markets wavered. Growth of the economy of the Sub-Saharan Africa is expected to accelerate to 3.4 percent in 2019 due to expected diminished policy uncertainty and improved investment in large economies together with continued growth in non-resource intensive countries (The World Bank Group, Global Economic Prospects: Darkening Skies, 2019).

Ghanaian Economy

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. Real GDP growth closed the year in December 2018 at 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 oil from the previous year (Financial Stability Council: Macro-Financial Risks, 2019).

Industry spurred the growth by being the fastest growing sector and expanding by 10.4 percent and 11.1 percent in the first and second quarters of 2018 respectively. The mining and quarrying sub-sectors boosted the performance in the growth by expanding by 28 percent, 24.7 percent and 23.9 percent in the first, second and third quarters respectively.

The country recorded a trade surplus of $1.6 billion in 2018 on the international trade market compared 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 in 2018, with gold, cocoa and oil exports contributing $4.71 billion, $1.6 billion and $3.83 billion respectively, compared to $13.84 billion in 2017. Consequently, total imports in 2018 stood at $13.10 billion as against $12.65 billion in 2017 with oil imports being $2.1 billion. The current account balance improved at the end of 2018 with a deficit of -$0.934 billion which translate to 1.4 percent of GDP as against -$1.195 billion in 2017. Whiles there was an improvement, a negative current account balance was recorded, and this does not indicate a good omen for the economy. Consequently, the budget deficit stood at a target of 4.5 percent of GDP in 2018 with the urge to bring it down to 4.2 percent in 2019. Import cover or gross international reserves improved in 2018 recording 3.6 months compared to 3.1 months for 2017 which was largely due to the improvement in the trade balance/account (Financial Stability Council: Macro-Financial Risks, 2019).

Ghana’s total debt stood at GH¢172.8 billion as at the close of 2018, split into external debt of GH¢86.3 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 resolution of the seven defunct banks. The public debt (including financial sector bailout) as a percentage of GDP stood at 70.7 percent at the end of September 2018 compared with 69.2 percent during the same period in 2017. By excluding the financial sector clean-up cost, the public debt stood at 66.5 percent of GDP. In terms of the rebased GDP, the public debt to GDP ratio is 57.2 percent including the financial sector clean-up cost and, 53.9 percent, excluding the clean-up cost (Budget Statement, 2019).

The International Monetary Fund (IMF) in its latest global outlook report forecast that the Ghanaian economy will continue to grow strongly with an estimated growth of 7.6 percent in 2019. This will be on the backbone of increased oil and gas activities and

a strong and recapitalized banking sector. The oil and gas sector will be attracting oil giants like ExxonMobil, Total and Eni who have all submitted bids for the sixty (60) blocks of onshore and offshore oil fields. The Bank of Ghana’s instruction issued in September 2017 for banks to increase their minimum capital from GH¢120 million to GH¢400 million (233 percent increase), has resulted in a recapitalized and strong banking sector. A total of twenty-two banks met the minimum capital requirement by the close of December 2018. While the banking sector looks stronger than before, the managers of the economy must also pay attention to risk from the non-banking sector which could spread to the rest of the financial system (Ghana: Year in Review).

Inflation

Headline inflation dropped from 11.8 percent in December 2017 to 9.4 percent in December 2018. The decline was as a result of a tight monetary policy stance taken by the Bank of Ghana. The 2018 fiscal year began with inflation at 10.3 percent in January and inching up to 10.6 percent in February and dropping to 9.6 percent in April. However, in June inflation went up to 10.0 percent before closing the year at 9.4 percent in December 2018 with the consumer price index (CPI) standing at 9.3 percent in November, below the 11.8 percent inflation rate for 2017. The food and non-alcoholic component of the index rose by 8.6 percent year-on-year, up from 6.8 percent in January, but still below the 13.6 percent recorded in December 2017. This was the lowest rate seen since July 1992. The overall non-food inflation declined over the year from 12 percent in January to 9.7 percent in November in 2018. However, transport costs with the inclusion of fuel prices rose by 13.7 percent; clothing and footwear 12.6 percent and miscellaneous goods and services at 10.3 percent (Ghana: Year in Review, 2018).

Interest Rates

The Monetary Policy Committee (MPC) of the Bank of Ghana dropped the policy by 100 basis points to 17 percent in November 2018. This is consonance with the fall in inflationary trend closing at 9.4 percent in November 2018. However, the same period in 2017, the rate was reduced by 50 basis points bringing it to 25.5 percent. Average lending rates declined to 26.86 percent in December 2018 from 29.3 percent in December 2017 due to tight monetary stance by the Bank of Ghana and, a reduction in the inflationary trend. Short-term securities market made some gains in terms of interest rates with 91-Day Treasury Bills which began the year with interest rate of 13.34% closed at 14.59% in December 2018. Also, 182 Day Treasury Bills commenced the year with a rate of 13.88% and ended up with 15.03% in December 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 19.50% respectively in December 2018 (Bank of Ghana: Quarterly Economic Review, 2018).

Exchange Rates

The Ghanaian cedi rolled-over its good performance against the major foreign currencies in 2017 into the commencement of the 2018 fiscal year. The cedi traded at GH¢4.42/USD at the beginning of the year and closed at GH¢4.82/USD, with an approximate depreciation of 9 percent. Against the British pound sterling it trade at GH¢5.98 to the Pound at the commencement of the year and GH¢6.17 to the Pound at the end of the year; while the Euro started at GH¢5.30/Euro and closed at GH¢5.51/Euro (Bank of Ghana: Quarterly Economic Review, 2018).

Developments on the Ghana Stock Market

The Ghanaian Stock Exchange Market (GSE) ended trading for 2018 with the GSE Composite Index, which measures the total performance of the market dipping by -0.29% to close at 2,572.22 points compared to 2,579.73 points of the 2017 index. Also, the GSE Financial Stock Index dropped by -6.79% in 2018 to close at 2,153.74 points as against 2,310.58 points in 2017. However, market capitalization inched up by 3.97% to close to at GH¢61,136.53 million in 2018 with 2017 figure being GH¢58,803.96 million. There was a huge leap in domestic capitalization by 56.28% from GH¢16,244.34 million in 2017 to GH¢25,387.18 million in 2018. This signifies the confidence investors have built in the

Ghanaian capital market, especially in domestic capital mobilization. Corporate Bonds saw a sharp increase 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 in 2017. This signifies a massive capital mobilization on the Ghanaian bourse in 2018.

The sectorial trades breakdown saw the Mining sector leading with a value traded of GH¢233,210,396.06 followed by the Finance sector with a value of GH¢195,581,494.66. While the Mining sector increased tremendously compared to the 2017 value, the Finance sector dropped significantly from GH¢370,213,205.39 during the same period. The drop in the Finance sector could be attributed to the turbulence in the Banking sub-sector leading to the collapse of some banks in 2018. The Insurance sector increased the trade volume and value in 2018. The trade volume increased to 11,090,154 shares compared to 10,544,969 shares in 2017; whilst the trade value went up to GH¢27,397,542.12 in 2018 as against GH¢14,663,458.56 in 2017. This indicates approximately 89 percent increase in the value traded with the two insurance companies listed on the Stock Market (Ghana Stock Exchange: Market Report, 2018). Both the volume and the value could possibly be higher if more insurance companies were listed on the Stock Market. It is pertinent that insurance companies in the country looked forward and pro-active by taking advantage of the Ghanaian Stock Market to mobilize capital in the wake of the proposed increase in the minimum capital requirement for the insurance industry.

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Ghana Insurance Market Report (2014 – 2018)Assets and Liabilities

In this section, we set out the Assets and Liabilities of the Life insurance, Non-Life insurance and Reinsurance sectors. We first provide an overview of the assets of the industry and then compare the assets with the liabilities.

The following were the growth rates in assets experienced in 2018:

• The assets of the insurance industry grew at

15% to GHS 6.2bn in 2018 from GHS 5.44bn in 2017.

• The Life sector grew by 8% from GHS 2.89bn in 2017 to GHS 3.12bn in 2018.

• The Non-Life sector grew by 28% to end the year 2018 at GHS 2.38bn from GHS 1.86bn in 2017.

• The reinsurance sector ended the year 2018 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 up of Cash, Investments, Property, Plant and Equipment (PPE), Receivables, Intangibles and Other Assets. The next chart shows the amount of each asset category

that makes up the total assets of insurers. This is done separately for Life and Non-Life insurers.

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 a more significant asset class for Non-Life insurers than for Life insurers. Whereas receivables in Life insurers are dominated by policy loans, in the Non-Life however, the receivables assets class is dominated by Reinsurance. In 2018, GHS 392m of the GHS 556m receivables of the Non-Life insurers representing 71%, are amount due from Reinsurers and Reinsurers’ share of technical provisions. The Commission will continue with activities

aimed at ensuring the amount of recievables on the balance sheet of insurance companies are not excessive.

Most of the PPE in the insurance industry is land and buildings occupied by the insurers.

The next sets of graphs focus on the investments of the insurance industry. Again, this is presented separately for the Life and Non-Life sectors.

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The graphs show that the main asset classes of the Life sector are Government securities (35%), Property (24%)

and Term Deposits at licenced banks (20%)

Figure 8: 2018: Investment mix of the Life Insurance Industry

Due to the difficulties experienced in the Banking sector, there has been a flight to safety. It can be seen from the graph below that whiles investment in relatively safer Government of Ghana securities has increased from

GHS 525m in 2017 to GHS 914m in 2018 representing an impressive growth of 74%, investment in fixed deposits at banks and other deposits have reduced significantly.

Figure 9: 2018: Investment mix of the Life Insurance Industry

The next graph below compares the investment mix of the Non-Life insurers at year end 2017 with that of 2018. It reveals that in 2018, Property Investment was

the asset class that experienced the most growth. SIC, Star, Prime and GUA were the major contributors to the 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 significantly exposed to the crisis in the banking Sector via Term Deposit held at licenced banks though there

was a decline with respect to the exposure compared to the previous year as revealed below.

Figure 11: 2018: Investment mix of the Non-Life Insurance Industry

A comparison is now made between the assets and liabilities of the insurers. The pictorial diagram below shows the investments as well as the Technical Provisions of the insurers.

The diagram below shows that the industry continues to have sufficient investments and for that matter assets to cover the liabilities. It is also worth pointing out that over GHS 384m representing cash have been excluded from

the depiction below. However, this analysis does not consider the quality of the assets and appropriateness of assets, which are part of the on-going deliberations between the Commission and individual insurers. The liabilities of the insurance industry are made up of the Technical Provisions (liabilities due to policyholders) and other liabilities (short term liabilities and long-term liabilities). The next set of graphs shows how the 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 the reinsurance industry for 2018 was at GHS 734m compared to GHS 649m in 2017. This represents a growth of 13% in 2018 compared to the growth rate of 23% in 2017. In 2018, the aggregate technical provisions for the reinsurance sector stood at GHS 171m from GHS 154m in 2017 representing a growth of 11%.

Total Equity in the reinsurance industry grew by 9% to settle at GHS506m in 2018 from GHS 466m in 2017.

Market Leaders in the Insurance Industry in Ghana

Four main criteria are used to assess market leaders:

1. Underwriting profits (for Non-Life insurers only, savings product in the life sector distorts this analysis)

2. Profit After Tax

3. Total Assets

4. Gross Written Premiums

We set out below the market leaders based on each of the criteria below.

Non-Life Market Leaders – Underwriting Profit

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 underwriting losses being experienced by the industry and the reduction in investment returns, it is imperative to highlight the importance of underwriting profits. The graph below shows the top ten Non-Life insurance companies in terms of underwriting profit.

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Figure 14: 2018: Market Leaders (Non-Life) - Underwriting Profit

Non-Life Market Leaders – Profit after Tax

The main difference between underwriting profit and profit after tax, is investment income and tax. This is the

bottom line of the insurer. It is important to emphasise that whilst premium volume has some usefulness, profit after tax is more important.

Figure 15: 2018: Non-Life Market Leaders – Profit after Tax

Life Market Leaders – Profit after Tax

The main difference between underwriting profit and profit after tax, is investment income and tax. This is the

bottom line of the insurer. It is important we emphasise that whilst premium volume has some usefulness, profit after tax is more important.

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Figure 16: 2018: Life Profit After Tax (GHS’m)

Non-Life Market Leaders - in terms of Total Assets

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

1.66bn representing 70% of the Total Assets for Non-Life insurance sector in 2018.

Figure 17: 2018: Non–Life insurers with largest Total Assets

Life Market Leaders – Total Assets

The chart below sets out the assets of top 10 Market Leaders in the Life sector in respect of Total Assets. They contributed a significant amount of GHS 2.83bn representing 91% of the Total Assets for Life insurance sector in 2018. It can be seen that there is greater concentration of market share in the top ten of the Life

sector than in the Non-Life sector. This is primarily due to the lack of compulsory insurance in the Life sector, as such purchases of Life insurance products are done with greater expectation of a payment of a benefit. Thus the importance of brands are more significant in the Life sector than the Non-Life sector. Life insurance firms that are more trusted attract a greater proportion 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

Ghana Re continues to be the market leader. The chart below sets out the total assets of the three reinsurers in the industry. Ghana Re’s total assets of GHS 493m

represents a market share of 67%. GN Re followed with total of GHS 170m representing 23%. Also Mainstream contributed GHS 71m representing 10% of the total reinsurers assets.

Figure 19: 2018: Reinsurers with largest Total Assets

Non-Life Market Leaders – Premiums

At year end 2018, Enterprise led the market with total premium amounting to GHS184m, followed closely by SIC with GHS178m.

It is worth noting that this position was held by SIC in the prior year 2017. Star and Vanguard also contributed GHS 123m and GHS 104m respectively. Contributions from the 10 market leaders in terms of premiums 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

Enterprise Life maintained its lead in terms of premium volume. Enterprise Life had total premium of GHS 306m in 2018. SIC Life followed closely with GHS 304m. Star

life and Glico Life also contributed GHS 209m and GHS 109m respectively. Contributions from the 10 Life market leaders in terms of premiums amounted to GHS 1,250m representing 93% of the total premium.

Figure 21: 2018: Life Insurers with highest premium

POLICYHOLDER BENEFITS PAID

In 2018 the total benefit payments made for Life business amounted to GHS 704m. GHS 671m of these payments were made by the top 10 Life insurers. This

represents 95%. As depicted in the graph below, SIC Life led the market with a total benefit payment of GHS 212m. Enterprise Life made a payment of GHS 179m followed by StarLife with GHS 92m and Glico Life with GHS 65m.

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Figure 22: Life Market leaders – In terms of Policyholders Benefit Paid

Underwriting Results

The Regulator continues to be concerned about the consistent failure of its regulated entities to remain profitable in their core business of operations. The chart below shows constant underwriting losses in the insurance industry (both Life and Non-Life) over the past three years. The industry continues to rely on investment income to compensate for the losses in

their underwriting results. The challenge will be how the industry react going forward to the declining treasury rates.

As stated earlier analysis of underwriting profits of life sector is not particularly helpful due to a significant part of the business being savings products. A more useful analysis would be to assess the risk premium with the benefits paid for the risks.

Figure 23: 2018: Life Insurers with highest premium

Profit After Tax (PAT)

In 2018, Total Industry PAT stood at GHS 204m from a high of GHS 245m in the prior year of 2017 representing a contraction of -17%. Of the total industry profit,

Life contributed GHS 95m representing a share of 47% compared to a share of 59% in 2017. Non- Life contributed GHS 108m in 2018 representing a share of 53% compared to a share of 41% in 2017. This shows

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that the reduction in the profitability of the industry is primarily due to Life sector. This is to be expected because of the significance of savings products in the Life sector, which has been adversely affected by

the reduced investment returns due to lower returns on government securities and the challenges in the banking sector.

Figure 24: 2018: Yearly Aggregate Industry Contribution (GHS’ m)

Gross Premium (Life and Non-Life)

Total industry premium without GOGIP contribution amounted to GHS 2.6bn in 2018. 51% of this was contributed by the Non-Life industry whose premium

was GHS 1.34bn whilst the Life industry contributed 49%, that is, GHS 1.30bn. When GOGIP’s premium are included, Non-Life contribution increases to GHS1.60bn representing 54% of the total amount whilst Life’s 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

Again in 2018, the leading channel for the distribution of Life insurance products was Individual/Tied Agents, contributing 64% of Life’s annual premium income. Direct business also contributed 14% of the premium, whiles insurance brokers contributed 6%.

Bancassurance ended the year 2018 with 11% down from 13% in 2017. The reduction in the proportion contributed by bancassurance is primarily due to the challenges experienced in the banking sector. The other

distribution channels used in the Life sector are the telecommunication companies and corporate agents.

On the other hand, Brokers continued their dominance as the leading channel for the distribution of Non-Life insurance products with a contribution of 40% of the Non-Life’s annual premium income, individual/tied agents and direct business contributed 30% and 23% respectively. Bancasssurance, other corporate agents and Others made up the rest of the Non-life premium income.

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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 Life)

The graph below paints a picture of the concentration of the sale of insurance in Greater Accra. This is especially prevalent in the Non-Life sector in which Greater Accra contributed 84% of the Non-Life sector’s premium. One

of the reasons for this is that most companies head offices are located in Greater Accra, thus insurance purchased for the entire operations across the country will be paid for in Accra. This reason, however does not diminish the fact that majority of business activities and individuals that have insurance are located in the urban areas.

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Figure 30: 2018: Regional Distribution of Premiums for both Life and Non-Life

Premium distribution by Class of Business

Non –Life sector

Motor class of business maintained its dominance in the Non-Life insurance sector, contributing 37%. This figure increases appreciably, when the analysis is done excluding premium from GOGIP. The premium for Motor Insurance for 2018 was GHS 599m compared to GHS 566m in 2017, meaning premiums for Motor Insurance grew by 6%.

The second important class of business is Theft and Property. This grew by 13% from GHS272m to GHS308m.

A common feature of the two dominant classes is that there is an element of compulsion in the purchase of these insurance. This highlights two issues:

1. The important of compulsory insurance

2. The over reliance on compulsory insurance.

These two issues highlights the work the industry has to do to improve its image to help with the sale of non-compulsory insurance products.

The Oil and Gas class saw a significant growth of 80%. That is from GHS168m in 2017 to GHS302m in 2018. Some of the increase is explained by the weakening of the Ghanaian cedi and the fact that premiums are paid in dollars.

Engineering and Liability came 4th with contributions of 6% each and premium income of GHS9m each. Personal Accident, Marine and Aviation and Financial loss came 6th, 7th and 8th with a contribution of 5%, 4% and 4% respectively.

Figure 31: 2018: Analysis of Non-Life Premiums by class of business

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Ghana Oil and Gas Pool

GOGIP is a pool of 22 Non-Life insurance companies that has the mandate to provide insurance cover for activities related to the Oil and Gas business in Ghana.

The graph below shows the gross premium and claims of GOGIP for 2018, 2017 and 2016 respectively. The Gross Premium for 2017 and 2018 is equivalent to about GHS 168m (USD 47m) and GHS 302m (USD 63m) respectively.

Figure 32: Gross Premium and Claims (USD ‘millions)

Life

The Life industry in 2018 also maintained the same trend as Universal Life led the sector and ending the year at GHS 671m with contribution of 50% shedding away the 2% points it gained in the prior year with a premium income of GHS 558m being 52% of the premium income of life insurers. This confirms the

fact that the market continues to be dominated by savings or investment-linked products. Whole Life & Endowment came second with 27% ending the year at GHS 335m. Group Life stood at GHS 109m year-end contributing 8% and taking the third position. Term, Credit and other approved products all contributed 5%.

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-Life sectors. It shows that Non-Life total Reinsurance premium improved marginally from GHS 224m in 2017 to GHS 235m in 2018, whiles that of the Life’s also saw an improvement to GHS 20m in 2018 from GHS12m.

Insurance Broking Market

Market Leaders – in terms of Total Assets

The diagram shows the 10 top market leaders in the insurance broking industry in 2018 in terms of total assets. The top ten market leaders shown in the graph below, contributed GHS 80m representing 63% of the Total Assets of brokers ( GHS 127m). The composition of 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.

Total commission for Insurance Brokers stood at GHS 113m in 2018 up from GHS 86m in 2017 representing a growth of 31%. Out of the total commission received, the top ten market leaders contributed, a total of GHS 68m in 2018 compared to the GHS 58m contributed as

at year end 2017.

KEK Insurance Brokers, Edward Mensah, Wood & Associates Limited, and Willis Towers retained their respective positions as 1st, 2nd and 3rd in the sector. Shield Insurance Brokers, a newcomer in 2018 jointly 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 implemented its new Reinsurance Guidelines. The main focus of the guidelines was the utilization of local capacity and a significant reduction in premium flight.

Section (8) of the guidelines requires insurance/reinsurance companies to apply to the NIC for approval for all overseas reinsurance premium transfers. The 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 dipped in 2018. This can be attributed to the strict implementation of the Reinsurance Guidelines by the NIC.

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 within the declared capacity for a class of business, and capacity really exists, it must be retained locally.

Furthermore, the Ghana Oil and Gas Insurance Pool (GOGIP) among others, is working really hard in the energy sector to ensure that more oil and gas risks are retained locally. However, the insurance industry lacks adequate resources to enable it make a meaningful impact.

The Commission will continue in its efforts to grow the industry by ensuring that local capacity is adequately 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

13 Millennium Insurance 6,637,176 8,161,485 12,930,952 15,321,562 15,715,433

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

19 Provident Insurance Company Ltd. 10,462,289 14,952,407 20,364,746 21,419,866 22,541,818

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

13 GN Life Assurance* N/A 1,179,090 7,270,045 15,491,927 22,098,734

14 Metropolitan Life* 26,344,298 29,924,473 31,595,032 39,705,069 15,296,295

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


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)

15 M e t r o p o l i t a n Life* 3,735,547 4,304,019 961,466 7,183,358 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)

23 Serene N/A N/A N/A N/A (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

3 Individual/Tied Agents 64 30 67 36 62 32 63 30

4 Bancassurance 11 2 13 3 7 2 7 1

5 Other Corporate Agents 1 3 0 2 1 1 1 1

6 Telecom Companies 1 0 2 0 2 0 2 0

7 Others 3 2 4 1 4 1 4 1

TABLE 17: PREMIUM INCOME FOR REINSURANCE COMPANIES (2013-2017)

Year Life Non-Life Total Growth Rate %

Market share

Non-Life

Market share 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 NICIncluded 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

Premiums

Cont. per Class %

Premiums

Cont. per

Class %

Premiums

Cont. per

Class %

Premiums

Cont. per

Class %

Fire, Theft and property

198,072,421 23.0 221,506,349 18.86 271,865,371 20.00 308,239,883 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, Health and Medical

84,671,194 9.90 68,659,141 5.84 68,192,111 5.00 78,585,694 4.91

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 Guarantees

41,777,399 4.90

54,654,670 4.65 47,497,394 3.50 56,633,109 3.54

Engineering 61,571,738 7.20 90,035,148 7.66 72,496,175 5.30 93,118,944 5.82

Other Approved Products

22,351,277 2.60 14,364,090 1.22 11,896,420 0.90 3,961,180 0.25

GOGIP 104,695,942 8.91 167,821,399 12.40 301,731,460 18.86

Total Non-Life Premiums

854,825,825 100 1,174,752,993 100 1,357,106,120 100 1,600,045,599 100

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


*The Non-Life product lines have been realigned, thus separating Bonds/Financial Guarantees, Engineering and Liability from Personal Accident

line of business.

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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 Brokers Ltd. N/A 264,810 542,177 567,581 612,279

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

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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/SGlobal Impact Insurance Brokers Gh. Ltd. 125,550 113,395 129,673 N/S 418,367

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 & Mang’t Consult. N/A 23,301 272,412 N/S 1,273,460

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

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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 & Consultants 10,561 194,240 119123 250,000 145,522

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%

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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

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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

| 63 |



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%


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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 |


| 65 |

Life CompaniesCHANGE IN POLICYHOLDER INFLOWS

This ratio measures growth or contraction of an insurer’s total premium (both risk and savings components) inflows from policyholders. The Average Policyholder inflow for 2017 is 30%, a slight appreciation in the growth rate of Long Term Insurers Premium compared

to the 2016 results. This statistic has reduced to 24% in 2018. Exceed Life, Hollard Life and Allianz Life’s results are not consistent with the industry average because they are relatively new. Only Ghana Union experienced 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

| 66 |


POLICYHOLDER COVERAGE

This ratio compares the equity and actuarial liabilities of a company. It is an indicator of how much capital the company has after all technical provisions have been considered. Generally, when the actuarial liabilities are more than 300% of the company’s equity, it is

considered risky since the ability to absorb unexpected shocks may be impaired. The industry average of 139% in 2017 showed an average improvement in the capacity of long term insurers to meet unforeseen shocks. This 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

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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 total investments (including cash and cash equivalents) to total assets. It seeks to establish the percentage of the company’s assets that are in investments as opposed to operational assets. Investment assets are generally kept to meet known liabilities and so a high investment assets ratio shows a positive position than

a low investment assets ratio. The Life insurance sector recorded an average of 79%. The higher the ratio, the better the quality of the company’s asset base. The ratios for Vanguard Life, Mi Life, Ghana Life, Ghana Union Life, First, Beige Assure, Allianz Life and Exceed are, however, below the industry average.

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


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



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









24 Vanguard Life Assurance Company Limited 53 46 73 64 75

POLICYHOLDER BENEFIT COVER

This is a measure of investment adequacy with respect to an insurer’s liabilities. It is calculated as a ratio of total investments to actuarial liabilities. It seeks to assess the adequacy of the company’s investments to cover the policyholder liabilities. The Life sector recorded an average of 190% in 2018. The investment assets should, as a minimum, cover policyholder benefits. A ratio of less than 100% means that the company does not have enough investments to cover the policyholder liabilities.

SIC Life and Beige Assure recorded ratios below 100%. This ratio helps to analyze the adequacy of a company’s technical provisions and must be considered alongside policyholder benefit cover to ensure a company is not associated with the risk of under provisioning. Allianz Life, First Insurance and Hollard Life only started trading in 2018 with, generally, low actuarial liabilities. Their ratios, therefore, appear inconsistent with the industry 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


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



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




13 GN Life Assurance Company Limited N/A 2407 1353 439 N/A







20 Saham Life Insurance Ghana Limited 393 1883 1,059 611 463




24 Vanguard Life Assurance Company Limited* 145 103 407 385 361

| 70 |


RETENTION RATIO

This ratio measures the proportion of the premiums that are not ceded to reinsurers. Retention among Life insurers in Ghana is generally high. SIC Life had the highest retention ratio of 100%. Generally, this high

retention rate can be attributed to the high savings oriented Life policies, relative to risk businesses in the Life insurance market.

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


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




9 First Insurance Company Limited N/A N/A N/A 92 90




13 GN Life Assurance Company Limited N/A 87 92 98 N/S









| 71 |


Percentage (%)

Company 2014 2015 2016 2017 2018

Average 95 91 91 92 91



24 Vanguard Life Assurance Company Limited* 83 89 91 87 86

INVESTMENT YIELD

This ratio calculates the return on a company’s investments. It seeks to measure the quality of a company’s investment portfolio. It is the ratio of investment income to total investment. The industry average remained 15%. Twelve companies recorded

investment performances below the industry average with GUA Life, Glico, Hollard Life, Saham Life and Mi Life recording single digit investment yields. A significant outlier of this statistic is the ratio for Beige Assure.

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

| 72 |


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 over a period, usually one year. A negative ratio implies the company experienced a loss or has a negative equity base or both during the period. The Industry

average has been reducing in the last 5 years and for the first time over this period, recorded a negative ROE in the year 2018. Nine Companies recorded losses after tax 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)

| 73 |


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)


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



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)


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)


20 Saham Life Insurance Ghana Limited 0 1 2 5 (1)

21 SIC Life Insurance Company Limited* 25 26 6 9 (114)


23 Mi Life Insurance Company Limited 5 (28) (31) (27) (10)

24 Vanguard Life Assurance Company Limited* (8) (95) 2.4 24 4

| 74 |


RETURN ON ASSET

This is a ratio of profit after tax to total assets. It seeks to measure the efficiency with which management utilizes the assets of the company to generate returns for its various stakeholders. The market performance

on this ratio has been experiencing a dip for the past three years. Though total assets have been increasing, profits after tax have not been increasing at a similar 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

| 75 |


EXPENSE RATIO

This ratio calculates actual management expenses incurred as a percentage of total net inflows received from policyholders. It serves as a check on efficiency. The international industry acceptable ratio should not exceed 40%. A high ratio indicates inefficiency on the part of the insurance company in handling its activities and may also suggest most of the premium received is

catering for expenses and not necessarily building up policyholders’ benefit reserves. For the new entrants, Hollard Life and Allianz Life, their expense ratios are expectedly high as a result of the low volumes of business written and the high start-up and overhead costs.

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

| 76 |


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 of an insurer over the previous year. It is the general measure of improvements or deterioration of an insurer’s financial position. Some of the factors that can affect this ratio are profits or losses after tax, change

in unrealized gains or losses, changes in actuarial liabilities and regulatory enforcements to inject capital. The Industry average for this ratio fell once again from 19% in 2017 to 7% in 2018. This is consistent with the fall 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


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)


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)


| 77 |


Percentage (%)

Company 2014 2015 2016 2017 2018

Average 180 34 57 19 7

16 Old Mutual Assurance Ghana Limited 749 102 7 (15) (24)


18 Prudential Life Insurance Ghana 959 (19) 28 32 (4)


20 Saham Life Insurance Ghana Limited 0 782 2 5 (1)

21 SIC Life Insurance Company Limited* 30 21 (3) 14 (52)


23 Mi Life Insurance Company Limited 41 (8) 137 (20) 60

24 Vanguard Life Assurance Company Limited* 0.1 (49) 426 31 4

| 78 |


TABLE 31: STATEMENT OF ASSETS - LIFE

2018GHS

2017GHS

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

| 79 |


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

| 80 |


TABLE 32: STATEMENT OF EQUITY AND LIABILITIES FOR LIFE INSURERS

2018GHS

2017GHS 1 Technical Provisions

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 1,774,551,8652 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 220,777,534 176,783,7623 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 deducted from core capital) 25,536,903 24,359,316

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

| 81 |


Non-Life Companies

CHANGES IN GROSS WRITTEN PREMIUMS

This ratio measures growth or contraction in the company’s gross premium relative to the prior year. In 2018 the industry recorded a 10% growth, a fairly flat growth rate compared to 2017’s rate of 11%. Glico

General, Imperial General, NSIA Ghana, Prime Insurance and Star Assurance experienced varying degrees of contraction in growth.

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 49 118

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

| 82 |


Percentage (%)

Year: 2014 2015 2016 2017 2018


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

| 83 |


CHANGES IN NET WRITTEN PREMIUM

This measures growth or contraction in the company’s current net premiums over the previous year’s net premiums. A high growth/contraction rate that does not positively correlate to the gross premium growth

rate indicates significant changes in the company’s reinsurance program. Thus, any ratio greater or less than ±33% reflects significant changes in reinsurance policy or volatility in premiums.

TABLE 34: CHANGES IN NET WRITTEN PREMIUM

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:

1 Activa International Insurance Co. Limited 29 15 31 17 (1)

2 Allianz Insurance Company Limited 54 36 18 44 70


4 Donewell Insurance Company Limited 20 29 51 8 -


6 Ghana Union Assurance Company Limited (7) 46 36 25 30

7 Glico General Insurance Company Limited* (25) 114 (9) (13) 24



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


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



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

| 84 |


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:


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 insurer’s capital and surplus to absorb unforeseen shocks. It is calculated as a ratio of Net Written Premium to Equity. The higher the ratio, the less conservative the insurer, and hence, the greater the potential risk that, the insurer cannot absorb shocks/losses. In 2018, the ratio reduced to 80% from 81% in 2017 showing a slight

improvement in the Companies potential capacity to absorb unforeseen losses. Allianz Insurance, Enterprise Insurance, SUNU Assurance, Hollard Insurance, Phoenix Insurance, Prime Insurance, RegencyNem Insurance, Saham and Vanguard Assurance appear quite aggressive with higher level of risks relative to their capital or equity base.

TABLE 35: NET INSURANCE RISK

Percentage (%)

Year: 2014 2015 2016 2017 2018 Industry Average: 104 98 92 81 80 Non-Life Companies:



3 Best Assurance Company Limited* N/A N/A 24 47* 63



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



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

| 85 |


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


17 Prime Insurance Company Limited (117) 68 173 169 143




21 RegencyNEM Insurance Ghana Ltd 185 230 209 149 141

22 Saham Insurance Company Limited* 125 45 49 72* 137


24 SIC Insurance Company Limited* 95 83 119 99* 48



27 Unique Insurance Company Ltd 146 80 62 55 57


29 Wapic Insurance (Gh.) Limited* 74 48 77 85 83

Reinsurers:


2 Mainstream Reinsurance Company Limited 63 38 32 47 45

3 GN Reinsurance* 1 12 15 24 24

| 86 |


GROSS INSURANCE RISK RATIO

This ratio is similar to the Net Risk Ratio with Net Written Premium replaced with Gross Written Premium. The quite aggressive insurers appear to be the same as those with high Net Insurance Risk ratios. Donewell Insurance,

Glico General, Quality Insurance and WAPIC also appear quite aggressive even though this has been managed through reinsurance as evidenced by the relatively lower net retentions.

TABLE 36: GROSS INSURANCE RISK

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:



3 Best Assurance Company Limited* N/A N/A 32 53* 78



6 Ghana Union Assurance Company Limited 36 78 64 50* 68

7 Glico General Insurance Company Limited* 305 389 216 186* 178










17 Prime Insurance Company Limited (184) 88 215 203 160







24 SIC Insurance Company Limited* 152 171 202 162* 77


| 87 |


Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:





Reinsurers:




CHANGE IN CAPITAL AND SURPLUS

This ratio measures the growth or decline in the equity of the insurer over the previous year. It is the general measure of improvement or deterioration of an insurer’s financial position. Some of the factors that could affect this ratio are after tax profits or losses, changes in unrealized gains or losses on assets, or changes in the

Technical Provision of policies and injection of capital. In 2018, the ratio reduced from 32% (in 2017) to 23%. The acceptable threshold for this ratio is between 0 to 33%. The nature, scale, complexity as well as the risk appetite level of the insurer’s business is a useful indicator of the level of capital required.

TABLE 37: CHANGE IN CAPITAL & SURPLUS

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:


2 Allianz Insurance Company Limited 366 (30) 127 29 (41)




6 Ghana Union Assurance Company Limited 67 (34) 30 54 (19)

7 Glico General Insurance Company Limited* (2) 16 83 13 11



| 88 |


10 Hollard Insurance Company Limited 15 97 26 26 (11)

11 Imperial General Insurance Co. Limited* 3 1 (12) 78 (2)


13 Millennium Insurance Company Ltd* 8 (2) 106 30 26


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





22 Saham Insurance Company Limited* 133 191 (28) 32 (976)


24 SIC Insurance Company Limited* 2 9 (2) 23 127





29 Wapic Insurance (Gh.) Limited* 293 82 (21) (15) 30

Reinsurers:



3 GN Reinsurance* - (12) 18 12 7

| 89 |


CLAIMS RESERVE RATIO

This ratio is calculated as the Provision for Outstanding Claims (including the IBNR) divided by the Net Earned Premiums. It compares the relationship of provisions for outstanding claims to net earned premiums, to determine whether or not the company is adequately reserving for claims in process. It is therefore an indication of the adequacy of the Outstanding Claims

Provision. The internationally acceptable range for this ratio is between 25% and 50%. In 2017 the average ratio increased to 40% from 32% in 2016 and further increased to 52% in 2018. Best, Donewell, Heritage, Imperial, Prime, RegencyNem, Quality and Vanguard finished the year with claims reserve ratios below the lower threshold of 25%.

TABLE 38: CLAIMS RESERVE RATIO

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:






6 Equity Assurance Company Limited 21 26 10 19 42


8 Glico General Insurance Company Limited* 42 32 44 62 47










18 Prime Insurance Company Limited 86 14 13 15 13





23 Saham Insurance Company Limited* 13 148 75 66 195

| 90 |


Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:







Reinsurers:




RETENTION RATIO

This is calculated as the Net Written Premium over the Gross Written Premium. It represents the portion of the risks that Insurers have not passed on to reinsurers. Even though high retentions are usually considered riskier, the tolerance level actually varies between the various lines of business. High retention will require sufficient

capital to support the insurer. The industry recorded an average retention ratio of 70% in 2018, representing a one-percentage point reduction compared to 2017. Activa’s retention over the year 2018 remained low compared to the industry average.

TABLE 39: RETENTION RATIO

Percentage (%) Year: 2014 2015 2016 2017 2018

Industry Average: 68 66 68 71 70 Non-Life Companies:









| 91 |


Percentage (%) Year: 2014 2015 2016 2017 2018

Industry Average: 68 66 68 71 70 Non-Life Companies:






















Reinsurers:




| 92 |


INVESTMENT YIELD

This ratio gives a reasonable indication of the return on the investment portfolio. It is calculated by dividing the investment income by the total investments. In 2018 the industry average settled at 10% commensurate to the current general market condition as interest rates

continue to fall. Allianz, Donewell, Millennium and Unique recorded ratios significantly above the Industry Average. The ratios for Activa, Best, Enterprise, SUNU, Glico, Heritage, Multi, Prime, Saham, SIC, Star and Vanguard are all below the industry average.

TABLE 40: INVESTMENT YIELD

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:

























| 93 |


Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:






Reinsurers




RETURN ON ASSET RATIO

This ratio is an indicator of general profitability of the insurer. It is calculated as after tax profits divided by total assets. It seeks to measure the efficiency with which management utilize the assets of the company to generate returns for the various stakeholders. The industry average has hovered between 3% and 6% in

five years, with 2018 being the highest. Allianz Insurance, Hollard Insurance, Imperial General, Loyalty Insurance, Multi Insurance, NSIA Ghana, Phoenix Insurance, Saham Insurance and Serene Insurance recorded negative return on assets. SIC attained the highest return on assets.

TABLE 41: RETURN ON ASSET RATIO

Percentage (%) Year: 2014 2015 2016 2017 2018 Industry Average: 4 3 4 4 6 Non-Life Companies:


2 Allianz Insurance Company Limited (6) (12) (5) (31) (17)





| 94 |



8 Glico General Insurance Company Limited* (10) (3) 6 7 5





13 Loyalty Insurance Company Limited N/A N/A N/A (10) (10)


15 Multi Insurance Company Limited N/A N/A N/A (4) (1)



18 Prime Insurance Company Limited (215) (4) 2 2 (29)






24 Serene Insurance Company Limited N/A N/A N/A N/A (18)

25 SIC Insurance Company Limited* (5) 5 2 5 17



27 Unique Insurance Company Ltd (3) N/S 19 6 6


29 Wapic Insurance (Gh.) Limited* 13 (7) (12) 6 0

Reinsurers:




| 95 |


CLAIMS RATIO

This ratio is calculated as the net claims incurred divided by the Net Earned Premiums. It is a key ratio which indicates how well an insurance company pays claims and to some extent, of fair customer treatment. The ratio is an indication of how much policyholders get back in return for each cedi of premium paid to insurance companies. The industry average over the

years has been low compared to the international acceptable standard, which ranges between 40% and 60%. Since the core obligation of an insurer is to pay claims, insurers must ensure that all incurred claims are paid quickly in order to win the confidence of the public. In 2018, the industry average increased to 42% from 37% in the previous year.

TABLE 42: CLAIMS RATIO

Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:





















22 RegencyNEM Insurance Ghana Ltd (3) 43 35 38 33



| 96 |


Percentage (%)

Year: 2014 2015 2016 2017 2018


Non-Life Companies:



6 Sunu Assurance GhanaLimited 24 25 32 28 29




Reinsurers:




TOTAL EXPENSE RATIO

The total expense ratio is another key indicator of profitability. It is calculated as Total Expense (Management Expense + Commission expense) as a percentage of the Net Earned Premium. The international acceptable ratio is typically less than 40%. The implication of a high ratio is that, the insurer is

inefficient in discharging its insurance obligations and this is likely to affect its ability to pay claims promptly. In 2018, the industry average expense ratio was 99%. A decline from 2017’s experience of 86%. Fourteen of the licensed Non-Life insurers recorded expense ratios greater than 100%.

TABLE 43: TOTAL EXPENSE RATIO

Percentage (%)




3 Best Assurance Company Limited* N/A N/A N/A 81 79





| 97 |


Percentage (%)



9 Heritage Insurance Company Limited* 189 N/S N/S 63 62



12 Loyalty Insurance Company Limited 67 112 118 515 245


14 Multi Insurance Company Limited 113 88 83 1719 182
















Reinsurers:



3 GN Reinsurance* 531 124 84 86 73

| 98 |


COMBINED RATIO

The combined ratio is the summation of the Claims Ratio and the Total Expense Ratio. It is the single best measure of an insurer’s underwriting and operational efficiency. The ratio does not measure total profitability as investment income and other earnings are excluded. Generally, a ratio of less than 100% indicates underwriting profitability while a ratio of more than

100% usually indicates a loss. This may not be the case for companies that make huge investment and other related earnings to boost their profitability. Industry average increased by eighteen percentage points to 142% in 2018 from 124% in 2017. Industry players must strive to improve their underwriting efficiencies to be more profitable.

TABLE 44: COMBINED RATIO


























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Reinsurers:



3 GN Reinsurance* 531 147 107 119 117

TECHNICAL RESERVE COVER

This is calculated by dividing the Technical Provisions by the liquid investments. It is an indicator of whether sufficient liquid assets are being held to cover the technical provisions, as claims should be paid as and when they fall due. Ratios above 100% mean that the companies do not have enough liquid investments

backing their technical provisions. SUNU, Ghana Union, Glico, Hollard, Priority, Saham, Wapic and Prime reported ratios above 100%. 2018 recorded a ratio of 87% an increase from 70% in 2017. Industry participants should endeavor to improve on their liquidity and solvency position.

TABLE 45: TECHNICAL RESERVE COVER

Percentage (%)


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



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Percentage (%)


10 Hollard Insurance Company Limited 55 194.94 111 116 133



13 Millennium Insurance Company Ltd* 24 34.85 27 30 23


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


22 Saham Insurance Company Limited* 53 90.68 123 124 108


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:




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PROPORTION OF INVESTMENT ASSETS

This ratio is calculated as total investments divided by total asset. It is a useful measure of the quality of assets on the insurer’s balance sheet. Investments are generally better assets in terms of liquidity and capital

management than other assets such as Property, Plant and Equipment and/or Receivables. In 2018, the industry average increased by one percentage point to 67% as compared to 66% in 2017.

TABLE 46: PROPORTION OF INVESTMENT ASSETS

Percentage (%)


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



10 Hollard Insurance Company Limited 80 41.71 53 53 53



13 Millennium Insurance Company Ltd* 88 82.11 87 87 84


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


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 (%)


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:




RETURN ON EQUITY

This ratio measures the return on the shareholders’ funds over a period. It indicates how effective management is at growing and funding the operations of an insurance company using equity financing. In practice, high ratios

may not always be an indication of good performance as such factors as capital adequacy can boost the ratio. The industry average for 2018 was 12%.

TABLE 47: RETURN ON EQUITY



2 Allianz Insurance Company Limited (9) (43) (12) (54) (70)





7 Glico General Insurance Company Limited* (23) (8) 12 14 9


9 Heritage Insurance Company Limited* N/S N/S NS 23 17



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12 Loyalty Insurance Company Limited N/A N/A N/A (11) (13)


14 Multi Insurance Company Limited N/A N/A N/A (4) (1)



17 Prime Insurance Company Limited 230 (6) 5 6 (74)






23 Serene Insurance Company Limited N/A N/A N/A N/A (20)

24 SIC Insurance Company Limited* (11) 12 5 10 29



27 Unique Insurance Company Ltd (7) - 28 9 10


29 Wapic Insurance (Gh.) Limited* 25 (12) (28) (18) 1

Reinsurers:




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TABLE48: AGGREGATED STATEMENT OF ASSETS AS AT 31ST DECEMBER 2018 NON-LIFE

2018GHS

2017GHS

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, connected persons 40,271,175 37,029,196

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

2018GHS

2017GHS

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

Total Long Term Liabilities 31,104,753 1,000,000.00

4. Equity

Paid up ordinary shares 633,709,997 538,436,689

Paid up perpetual non-cumulative preference Shares 8,000,000 8,000,000

Paid up perpetual cumulative preference shares 1,470,000 1,350,000

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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 items to be deducted from core 46,114,881 71,354,974

Revaluation reserve (other) 2,240,845 6,240,476

Other reserves 15,431,193 -428,290

Retained earnings, as at end of previous financial year 86,201,071 52,234,991

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 Fund3. List of Registered Insurance Companies4. List of Registered Reinsurance Companies5. List of Registered Broking Companies

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| 109 |

Directors’ ReportThe 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

The Directors are responsible for the preparation of the Financial Statements for each financial year which give a true and fair view of the state of affairs of the Commission and of the operating performance and Cash Flows for that period. In preparing these Financial Statements, the Directors have selected suitable accounting policies and then applied them consistently, made judgments and estimates that are reasonable and prudent and followed the Ghana National Accounting Standards.

The Directors are responsible for ensuring that the Commission keeps proper accounting records that disclose reasonable accuracy at any time the financial position of the Commission. The Directors are also responsible for safeguarding the assets of the Commission and taking reasonable steps for the prevention and

detection of fraud and other irregularities.

Principal Activities

The objective of the Commission is to ensure effective administration, supervision, regulation, monitoring and control of the business of insurance to protect insurance policy holders and the insurance industry in Ghana other than health insurance under the National Health Insurance Act, 2003 (Act 650).

Directors

By virtue of the provisions of the Transitional Act all the Directors retired on 6th January 2017. New Directors were appointed on 18th August, 2017. The Commissioner was appointed on 12th July, 2017.

FINANCIAL RESULTS (HIGHLIGHTS)The financial results of the Commission are as summarised below:

2018GHS

2017GHS

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

......................................... .........................................

DIRECTORDIRECTOR

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NATIONAL INSURANCE COMMISSIONIndependent Auditors’ Report to theHonourable Minister of Finance

Opinion

We have audited the financial statements of National Insurance Commission which comprise the statement of financial positon as at 31 December, 2018 Income and Expenditure Accounts and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory notes as set out on pages 115 to 122.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Commission 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 Standards and in the manner required by the Insurance Act 2006 (Act 724).

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Commission in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors for the Financial Statements

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 determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors are responsible for assessing the Commission’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Commission or to cease operations, or has no realistic alternative but to do so. The Board of Directors are responsible for overseeing the Commission’s financial reporting process.

Auditors’ Responsibility

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due 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 conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision of users, taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also;

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

• The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

| 111 |


circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The engagement Partner on the audit resulting in this independent auditor’s report is

Emmanuel Offei – ICAG/P/1102

for: Boateng, Offei & Co. – [ICAG/F/2019/108]



9 Bissau Avenue, East LegonAccra – Ghana

18th June, 2019

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INCOME AND EXPENDITURE ACCOUNTSFor the year ended 31st December, 2018

2018GHS

2017GHSNotes

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 POSITIONAs at 31st December, 2018

Assets Notes 2018GHS

2017GHSNon-Current Assets

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 GrantAccumulated 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:

................................................... .................................................

DIRECTORDIRECTOR


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STATEMENT OF CASH FLOWSFor the year ended 31st December, 2018

2018GHS

2017GHS

Operating ActivitiesCash 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 ActivitiesPurchase 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 EquivalentsCash 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 STATEMENTSFor 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 STATEMENTSFor the year ended 31st December, 2018

2 Income Notes 2018GHS

2017GHSThis is made up as follows:

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 2018GHS

2017GHSExpenditure is made up as follows:

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

| 118 |


NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31st December, 2018

4a Property, Plant & Equipment

Office BungalowOffice 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 & EquipmentCost - - 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 40,000This 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 SecuritiesLong-Term Securities are Eurobonds held-to-maturity with a coupon of 8.5%

maturing in 2018.

2018GHS

2017GHS

GOG Bonds 8,610,597 1,969,300

2018GHS

2017GHS7 Accounts Receivable and Prepayments

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

| 120 |



2018GHS

2017GHS8 Short Term Investments

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 - -


Net Movement in Investments 676,961 3,231,929

9 Cash and Cash Equivalents 2018GHS

2017GHS

Cash 21,304 43,597

Bank 7,205,586 6,557,593

7,226,890 6,601,190

10 a. GrantsGrants 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

2018GHS

2017GHSGrant Received

- 101,934

b. Deferred GrantsDeferred 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.

2018GHS

2017GHS

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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2018GHS

2017GHS11 Accounts Payable and Accruals Notes

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 ExpensesAudit 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 Expenditureto Cash flow from Operating ActivitiesExcess 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

| 122 |


NOTES FORMING PART OF THE FINANCIAL STATEMENTSFor the year ended 31st December, 2018

14 Gain/(Loss) on Disposal of Assets 2018GHS

2017GHS

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.

2018GHS

Staff Retirement Benefit 2,139,395Staff Second Tier 27,963 Provident Fund Payable 135,845

2,303,203

16 Capital CommitmentThere were no Capital Commitments as at 31st December, 2018 (2017 : Nil)

17 Contingent LiabilityThere were no contingent liabilities at 31st December, 2018 (2017: Nil)

| 123 |


FIRE MAINTENANCE FUNDDirector’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

The Directors are responsible for the preparation of the Financial Statements for each financial year which give a true and fair view of the state of affairs of the Fund and of the operating result and Cash flows for that year. In preparing these Financial Statements, the Directors have selected suitable accounting policies and applied them consistently, made judgments and estimates that are reasonable and prudent in the circumstances and followed the Ghana Accounting Standards.

The Directors are responsible for ensuring that the Fund keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Fund. The Directors are also responsible

for safeguarding the assets of the Fund and taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal Activities

The principal activities of the Fund are:

To provide funds and equipment to state institutions assigned with fire fighting functions and such other organisations as the Commission may determine for the purpose of fighting fires.

Financial Results

The financial results of the NIC Fire Maintenance Fund are as summarised below:

2018GHS

2017GHS

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

| 124 |


FIRE MAINTENANCE FUNDINDEPENDENT AUDITORS’ REPORT TO THE HONOURABLE MINISTER OF FINANCE

Opinion

We have audited the financial statements of NIC - Fire Maintenance Fund which comprise the statement of financial positon as at 31st December, 2018 Income and Expenditure Accounts and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory notes as set out on pages 129 to 131. In our opinion, the accompanying financial statements give a true and fair view of the financial position of 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 Standards and in the manner required by the Insurance Act 2006 (Act 724).

Basis for Opinion

We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors for the Financial Statements

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

determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors are responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. The Board of Directors are responsible for overseeing the Fund’s financial reporting process.

Auditors’ Responsibility

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due 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 conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also;

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

| 125 |


FIRE MAINTENANCE FUND INDEPENDENT AUDITORS’ REPORT TO THE HONOURABLE MINISTER OF FINANCE

• The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• 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 conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence 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.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The engagement Partner on the audit resulting in this independent auditor’s report is

Emmanuel Offei – ICAG/P/1102

for: Boateng, Offei & Co. – [ICAG/F/2019/108]



9 Bissau Avenue, East Legon

Accra – Ghana

18th June, 2019

| 126 |


FIRE MAINTENANCE FUNDINCOME AND EXPENDITURE ACCOUNTSFOR THE YEAR ENDED 31ST DECEMBER, 2018

2018GHS

2017GHSNotes

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


| 127 |


FIRE MAINTENANCE FUNDSTATEMENT OF FINANCIAL POSITIONAS AT 31ST DECEMBER, 2018

2018GHS

2017GHSCurrent Assets Notes

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

| 128 |


FIRE MAINTENANCE FUNDSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31ST DECEMBER, 2018

2018GHS

2017GHSNotes

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


| 129 |


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.

2018GHS

2017GHS2 Income

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

| 130 |


Management Fees on Investment 8,458 -

Public Education 48,985 5,745

Travelling & Transport 18,806 9,220

280,259 156,124

2018GHS

2017GHS4 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

2018GHS

2017GHS5 Long Term Investment

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


Net Investments 268,918 1,097,696

7 Cash & Cash Equivalents 2018GHS

2017GHS

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

| 131 |


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)

| 132 |


Registered Non-Life Insurance Companies

No. NAME OF COMPANY CONTACT

1 Activa International Insurance Company Ghana Limited Mr. Solomon Lartey , Chief Executive Officer

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

| 133 |


Registered Life Insurance Companies


1 African Life Assurance Company Limited James Ahiable, Managing Director

2 Exceed Life Assurance Company Limited Dzigbordi Agbekpormi, Chief Executive Officer

3 Allianz Life Insurance Ghana Limited Mr. Gideon Oviemo Ataraire, Ag. Chief Executive 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


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

| 134 |


Reinsurance Contact Offices


1 WAICA Re Corporation Plc. Mr. Clement Owusu, Regional Director, West Africa

Registered Insurance Broking Companies


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

| 135 |



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

50 Kols & Hols Insurance Brokers & Management Consultants Dr. Andrew Akolaa, Executive Director

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

| 136 |



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

79 Universal Insurance Consultants Ltd. Mr . Osei Kufuor (Daasebre Oguakuro Osei Bediako II, 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


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


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

ANNUAL REPORT & FINANCIAL STATEMENTS

2 18

N

ATION

AL INSU

RAN

CE COM

MISSIO

N2018 ANNUAL REPORT

www.nicgh.org

2 18...dvla reports that it has registered over 2.2 million vehicles and issues about 1.6 million...

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