Download - NIC Annual Report 2010
Annual Report 2010 1
National Insurance Commission
Page
Foreword 2Chairman’s Report 5 THE NATIONAL INSURANCE COMMISSION
Corporate Information 8 NIC’s Operations 9 THE INSURANCE MARKET 2010 Economic Review 14 Ghana Insurance Market Report (2006 – 2010) 15 Financial & Ratio Analysis 26 APPENDICES
1. Corporate Information 61 2. 2010 Financial Reports 623. List of Registered Insurance Companies 77 4. List of Registered Reinsurance Companies 84 5. List of Registered Broking Companies 85
CONTENT
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National Insurance Commission
PREPARINg fOR RISK- BASED SUPERvISION
2006 marked an important milestone in the Ghanaian insurance industry. The passage and the implementation of Insurance Act, 2006 (Act 724) resulted in very significant changes in the structure and operations of the industry. One major change is the significant increase in the number of insurance companies from 25 in 2006 to 42 in 2007. Although this has resulted in keener competition, the harmful effect of the competition so far cannot be underestimated. This has mainly been in the form of undercutting, unethical underwriting and marketing practices and over reliance on credit to manage the competition. These harmful effects are currently posing major challenges to the growth and efficiency of the industry. The National Insurance Commission (NIC) has therefore decided to find effective and sustainable solutions to these challenges in the form of a risk-based approach to supervision.
Insurance regulatory standards and methodologies are fast changing all over the world. The International Association of Insurance Supervisors (IAIS) has revised its Insurance Core Principles (ICPs). The approach to supervision is fast drifting from the compliance and historical toward the risk-based and the forward-looking methodologies. Traditionally, regulatory authorities have attempted to perform their roles by requiring insurance companies to comply with various requirements of laws or subordinate legislations. Experience has however shown that mere compliance with rules and legislations does not mean that a company is and will continue to be financially sound to honour its maturing obligations to policyholders.
Risk-based supervision on the other hand, requires supervisors to review the manner in which insurance companies identify and control risks that are associated with their business. This, in turn, allows supervisors to allocate resources and regulatory attention to insurance companies with high unmitigated risk exposures. Generally, risk-based supervisors assess the probability and severity of the material risks to which insurance companies are subject to and the effectiveness of the controls put in place by the insurance companies to reduce the probability of such risk events occurring or the severity of their impacts if they occur. Risk-based supervisors also assess the adequacy of the provisions insurance companies have in place to take care of the occurrence of a risk event even though controls are in place and are functioning properly.
From the foregoing, it can be deduced that Risk-based Supervision thrives on a robust legal and reporting framework, sound accounting standards and practices, accurate record keeping, adequate capitalization and effective governance and risk management structures. The NIC is therefore taking steps to address all these issues to lay a good foundation for an effective risk-based supervision model in the Ghanaian insurance industry.
FOREWORD
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National Insurance Commission
INTRODUCTION Of NEw PRUDENTIAL RETURNS
In order to obtain timely and adequate information for risk assessment and identification of early warning signals, the NIC has designed new prudential returns in line with International practice to be used by insurance companies to submit periodic returns to the Commission. These returns will be analysed to identify early warning signals as part of the Risk-Based Supervision processes. The returns will be submitted electronically to the NIC via a web-based portal.
INSURANCE INDUSTRy ACCOUNTINg MANUAL
The NIC in consultation with the Institute of Chartered Accountants Ghana (ICAG) has developed an Accounting Manual to guide the industry to comply with the International Financial Reporting Standards (IFRS). This is aimed at ensuring consistency and comparability in the measurement, presentation and disclosures in the financial reports of insurance companies. Under IFRS, insurance companies will have to fair value their assets and liabilities and make detailed disclosures in their annual reports which will be of immense benefit to policyholders, investors and regulators. Effective 31st December 2012, all insurance companies are required to prepare their annual financial statements to comply with the requirements of IFRS.
INTRODUCTION Of A NEw SOLvENCy fRAMEwORK
The NIC has developed a new solvency framework to replace the current one issued in 2008. The existing guidelines has the same solvency requirements for life and non-life companies which is inappropriate. It also does not take into consideration the major risks that the companies are subject to. The new framework which comes into effect in January 2012, has separate solvency requirements for life and non-life companies and takes into account some major risks the market currently faces. It also clearly defines allowable capital resources and minimum solvency capital requirements. It requires insurance companies to have admissible representative assets to back their technical provisions. It also has solvency control level to enable the NIC take a proactive approach in monitoring the solvency of insurance companies. Even though the new framework is not fully risk-based, it is a step towards a risk-based capital adequacy framework which will be introduced in the medium term.
MINIMUM START–UP CAPITAL
The NIC has proposed an upward review of the minimum start-up capital for an insurance company from the current cedi equivalent of US$1million specified in the Insurance Act, 2006 (Act 724) to the cedi equivalent of US$5million. This decision is aimed (among other things) at improving the efficiency of insurance companies through adequate investments in Information Communication Technology to improve their operational and reporting capacities, build strong governance and risk management structures and acquire other needed infrastructure and resources in readiness for the adoption of Risk-Based Supervision by the Commission.
Under the proposal, foreign companies are required to meet this directive by December 2012 while Ghanaian owned companies are given up to December 2013 to comply.
LEgAL REvIEw
The NIC is also reviewing the Insurance Act to enable it serve as a good foundation for a suitable risk-based supervision model. The new draft bill, copies of which have already been released to the industry for consultation, moves away from compliance based rules and rather focuses on systems, controls and governance structures. For example, the draft clearly spells out the responsibilities of the board of
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National Insurance Commission
directors and management of insurance companies. It also requires insurance companies to set up four key in-house functions namely internal audit, actuarial, compliance and risk management functions. The new draft also gives the NIC appropriate powers to enable it take the necessary action if the board of directors and management of insurance companies fail to live up to their responsibilities.
CORPORATE gOvERNANCE AND RISK MANAgEMENT CODE
The NIC is also preparing to issue a Corporate Governance and Risk Management code to guide the companies in building sound and effective governance and risk management structures. The Governance code will have key principles on Board membership, non-executive and independent directors, board sub-committees, external auditors and conflict of interest. The Risk management code will have principles on internal controls, the roles of the four key in-house functions, the key inherent risks insurance companies face and the approach to be used to identify, quantify and manage them.
The completion of the above-mentioned projects, which is expected to culminate in the implementation of a suitable risk-based supervision model for the Ghanaian insurance industry, will bring significant improvements to the financial soundness, stability, and profitability of the industry. The industry, it is expected will then be in a better position to assume its rightful role in the economy and contribute its quota to the development of the nation.
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National Insurance Commission
20 yEARS Of NATIONAL INSURANCE COMMISSION
2010 marked the 20th anniversary of the establishment of the National Insurance Commission (NIC). The NIC has gone through significant changes in its 20 years of existence. The Commissioner’s office which was a one room office located at the Ministry of Finance, moved to the Marble House and then to its current location, Insurance Place. With the support of the Ministry of Finance under various Government of Ghana/World Bank funded projects, some development partners and the industry, Insurance Place has seen some significant improvements over the past few years to befit its status as “Ghana’s Insurance Place”.
The staff strength of the NIC has increased from a mere fifteen (15) mostly seconded staff, in the late nineties to about 60 as at the end of 2010. The NIC can today boast of competent professionals and technical staff including four Actuarial staff. In terms of resources and logistics, the NIC has moved from the era where there used to be just three stand alone computers for the whole organisation to the present era where every staff has a modern computer operating on a networked system to enable effective communication and sharing of information and documents.
The above-mentioned modest gains have been possible due to the hard work and contribution of the Ministry of Finance, past and current Board of Directors, management and staff of the NIC, the entire industry and our development partners over the years. I wish to use this medium to express my sincere appreciation to all individuals and organizations who have in diverse ways contributed to the success of the NIC.
In the near future, the NIC plans to change its regulatory methodology from the current compliance based system to a Risk-based model. This will require some considerable amount of resources and expertise but we strongly believe that the benefits will far outweigh the cost.
INDUSTRy PERfORMANCE
The growth in the strength and capacity of the NIC has been accompanied by significant growth of the industry as well. The non-life premium income grew by 23% from GH¢221 million in 2009 to GH¢ 272 million in 2010, the life sector premium income grew by 52% from GH¢122 million in 2009 to GH¢187 million in 2010 resulting in a 33% growth in total premiums from GH¢343 million in 2009 to GH¢459 million in 2010.
It is important to note the rate of growth of the life premiums. It is also pertinent to note that for the past two years, the life insurance business has contributed more to the industry’s total premium income than the motor business. If this trend is to continue, it is expected that the life premiums will outgrow the total non-life premiums in less than five years.
CHAIRMAN’S REPORT
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National Insurance Commission
INSURANCE PENETRATION
Despite the above mentioned strides in the growth of the industry, the insurance penetration continues to be very low. The insurance penetration which is defined as the contribution of total insurance premiums to GDP, in real terms is still around 1%. This can be compared to South Africa – 14.8%, Namibia – 7.3%, Kenya – 2.8% Nigeria – 0.5% and Malaysia – 4.8%. (Source: Swiss Re 2010 Sigma report)
The NIC is determined to deepen the insurance penetration in Ghana through the development of Agricultural and Micro insurance. This agenda is being pursued with technical assistance from some development partners. The development of Agricultural and Micro insurance has been selected for obvious reasons. Agriculture contributes about 30% of the nation’s GDP and micro insurance will cater for the vast majority of Ghanaians who operate in the informal sector and therefore fall outside the scope of conventional insurance.
AgRICULTURAL INSURANCE
In pursuit of the above objective, an agricultural insurance feasibility study has been done and the report published. A national Steering Committee made up of all relevant stakeholders has been set up to oversee the implementation of the recommendations in the feasibility report. The necessary technical and management committees have also been set up to prosecute the project. The project will initially start with weather indexed insurance products for cereals but will later be expanded to cover other crops and eventually livestock.
MICROINSURANCE
With respect to micro insurance, appropriate provisions have been made in the draft bill to give the needed legal backing to the unique features of micro insurance products and distribution channels. In collaboration with the German International Cooperation (GIZ), specific programs have been designed to develop the capacity and provide technical assistance to companies providing micro insurance services. Programs have also been designed to develop the demand side of micro insurance as well. These include a baseline survey to ascertain the current state of the microinsurance market in Ghana, the development of an insurance awareness index toolkit and a general consumer education program.
COMPULSORy fIRE INSURANCE
The implementation of the compulsory fire insurance for all private commercial buildings is underway. The recent fire outbreaks at the various regional markets, Government offices and the collapse of buildings under construction have made the creation of the fire fund a very urgent and important project.
It is our hope, that very soon the fund will generate enough monies to enable it provide financial support to the Fire Service and all other such organisations to procure the needed equipment for fire fighting.
The NIC expects all private commercial enterprises to patronise the Compulsory Fire Insurance Programme to ensure protection for their businesses in case of fire outbreak or any other risks covered under this policy.
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National Insurance Commission
This programme, the Compulsory Fire for Private Commercial Buildings, has the potential to, among other things, significantly boost fire insurance premium income of the Industry in the next few years.
REvIvINg MARINE BUSINESS
The NIC and the GIA have put another committee together to implement recommendations made by an earlier committee on ways of reversing the dwindling fortunes of marine insurance. The percentage of marine premiums to total premiums has fallen consistently from about 6% in 2006 to 3% in 2010. The decline has been attributed to the blatant disregard for section 37 of the Insurance Act by importers. It is expected that the Committee, with the help of the relevant stakeholders, will help to reverse this unfortunate trend.
OIL AND gAS
In the last quarter of 2010, Ghana commenced the production of crude oil in commercial quantities. The non-life insurance companies came together to pool their capacities in the form of a consortium to underwrite the oil and gas business. The consortium has subsequently been converted into a pool. It is early days yet, but the Commission will closely monitor developments on this front.
CONCLUSION
It is the expectation of the Commission that the successful completion of the above initiatives will contribute significantly to the improvement of the efficiency of insurance business and increase the insurance penetration in Ghana with its attendant benefits for the policyholder, the insurance industry and the economy.
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National Insurance Commission
BOARD Of DIRECTORS: Mr. Frederick Quayenortey Chairman Mrs. Nyamikeh Kyiamah Commissioner of Insurance OTHER DIRECTORS Mr. Samuel Amankwah Mr. Justin Amenuvor Ms. Sarah Fafa Kpodo Dr. Albert Gemegah Mr. Emmanuel Baba Mahama SECRETARy: Mrs Emma Araba Ocran MANAgEMENT TEAM Mrs. Nyamikeh Kyiamah Commissioner of Insurance Mr. Simon N. K. Davor Ag. Deputy Commissioner of Insurance Mrs. Emma Araba Ocran Legal Director Mr. Michael Kofi Andoh Head, Supervision Mr. Joseph Bentor Head, Finance & Administration Mr. Isaac Buabeng Head, Marketing, Research & External Relations Mr. Martin Dornor Abayateye Internal Auditor AUDITORS: AADS Consult (Chartered Accountants) Republic House 5th Floor Accra REgISTERED OffICE Insurance Place No. 67 Independence Avenue P. O. Box CT 3456 Cantonments, Accra
CORPORATE INFORMATION
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National Insurance Commission
LICENSINg
INSURANCE COMPANIES
The Commission did not license any new insurance company during the year under review.
INSURANCE BROKERS
The underlisted six (6) insurance broking companies were licensed in 2010;
1. Risk Solutions Limited2. Riscovery Limited3. Insurance Solutions Limited4. KAV Insurance Brokers Limited5. Trinity Insurance Brokers Limited6. Risk Management and Advisory Services Limited
BANCASSURANCE
The National Insurance Commission approved two more bancassurance collaborations between insurance companies and banks during the year under review to enable the banks sell insurance products. They were;
• Cal Bank Limited/Glico Life Insurance Company Limited• Stanbic Bank Limited/Metropolitan Life Insurance Ghana Limited
This brought to seven (7) the number of approved Bancassurance collaborations, as at the end of 2010.
CHANgES IN CONTROL
Ascoma Group and its subsidiary, Ascoma International, obtained 80% shares in Newland Risk Management Company Limited, a broking firm. The firm’s name has subsequently been changed to “Ascoma Ghana Limited” to reflect the change in control.
Similarly, the name of Beacon Insurance Company Limited has been changed to “Colina Ghana Limited” following the acquisition of majority shares in the company by Colina Participations of Cote d’Ivoire in 2009.
NIC OPERATIONS
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National Insurance Commission
COMPLIANCE
The inspections unit of the Commission inspected twenty (20) broking firms and twenty-three (23) direct insurers to ascertain the extent of compliance with the Insurance Act, 2006 and best practice. In Addition, nine other companies that underwrite motor insurance were inspected to assess the market’s compliance with the newly approved motor insurance tariffs.
REINSURANCE PREMIUM TRANSfER
In pursuance of section 53 of the Insurance Act, 2006, the Commission received reinsurance premium transfer applications from Insurers. Hence, a total of US$2.71million, £4,250, €136,450 and the dollar equivalent of GH¢985,750 was approved for offshore reinsurance placements.
PRODUCT APPROvALS
The under-listed products of four companies were approved by the Commission in the year 2010.
LEgAL MATTERS
Enforcement Actions against Insurance CompaniesDuring the year 2010, sanctions were leveled against Companies that had breached various Sections of the Insurance Act 2006, (Act 724).
Eight (8) Non-Life Insurance Companies, twelve (12) Insurance Broking Companies, four (4) Life Insurance Companies and one (1) Reinsurance Company which failed to submit their Quarterly Returns and Annual Returns on time to the Commission, were made to pay penalties as prescribed under the Insurance Act 2006, Act 724.
COMPLAINTS AND SETTLEMENTS BUREAU
In the year 2010, the Bureau continued to receive complaints from the public against some Insurance Companies.
As has been the trend in previous years, most of the complaints received, related to motor claims. The areas of common complaints from the motor insurance claimants were as follows:
• Repudiation of claim by Insurers• Delay in settlement of claims• Dispute over quantum• Delay in payment of settled claims
COMPANy
Activa International Insurance Gh.
Regency Alliance Ins. Co. Ltd.
Vanguard Life Assurance Co. Ltd.
SIC Life Insurance Co. Ltd.
PRODUCT
Travel Insurance Plan
Travel Insurance Plan
Tigo Family Care Assurance
Funeral Plan
CLASS Of BUSINESS
Non-life
Non-life
Life
Life
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National Insurance Commission
Complaints received from Life Insurance policyholders included the following:
• Benefits promised by Insurers differ from benefits on policy documents• Insurance company’s failure to cease deductions after Policy has been surrendered• Payment of low surrender values• Delay in processing matured policies for payment• Delay in returning refund of wrongful deductions• Unauthorized premium deductions• Unspecified period of surrender
In all, four hundred and forty-five (445) complaints were received from the public against some Insurance Companies during the year under review.
INSURANCE COMPANIES
Uninsured
SIC Insurance Company Limited
Enterprise Life Assurance Company Limited
Unique Insurance Company Limited
IGI (Ghana) Company Limited
Star Assurance Company Limited
Quality Insurance Company Limited
GLICO Life
Star Life Assurance Company Limited
Provident Insurance Company Limited
Ecowas Brown Card
Vanguard Assurance Company Limited
Ghana Life Insurance Company Limited
CDH Insurance Company Limited
Metropolitan Insurance Company Limited
Donewell Insurance Company Limited
Golden Life Insurance Company Limited
The Great African Insurance Company Limited*
Regency Alliance Insurance Company Limited
Reliance Insurance Company Limited*
Unique Life Insurance Company Limited
Quality Life Insurance Company Limited
TOTAL
NO. Of COMPLAINTS
129
74
32
28
25
18
18
15
14
13
12
10
10
10
9
7
5
5
4
3
3
1
445
*These are Companies whose licenses were cancelled in 1998.
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National Insurance Commission
MOTOR COMPENSATION fUND
The Motor Compensation Fund set up in 1996 to compensate persons who suffer injuries or die in a motor accident but who are unable to get compensation from an Insurance Company for various Insurance provision(s) continued to petition the Fund for compensation.
The Compensation Fund Committee is made up of Officers from the National Insurance Commission (NIC) and Insurance Companies that underwrite Motor Insurance business. The Commissioner of Insurance is the Chairperson of the Committee.
The Committee continued with its core functions of making Awards to persons. It also intensified the publicity and Public Educational Programme on Motor Insurance, Life Insurance and Compulsory Fire Insurance for Private Commercial Buildings.
AwARDS SUB-COMMITTEE
The Awards Sub-committee of the Motor Compensation Fund Committee held twenty-one (21) sittings during the year. A total amount of One Hundred and Seventy-Five Thousand Seven Hundred and Thirty-eight Ghana Cedis (GH¢175,738.00) was paid as compensation to one Hundred and forty-two (142) applicants from the Fund.
The reasons for compensation from the Fund were as follows:
• Uninsured vehicles• Hit and run• Breach of policy conditions such as;
• Change of ownership• Inappropriate driving licence • Driving without a licence
A breakdown of awards is as follows:
yEAR
2010
2009
2008
2007
NO. Of AwARDS
142
146
106
90
TOTAL AMOUNT (gH¢)
175,738
159,911
107,260
77,119
During the period under review, the Fund realized a total income of Six Hundred and Six Thousand One Hundred and Twenty-Seven Ghana Cedis (GH¢606,127) made up of Motor contributions from Insurance Companies, investment income and interest earned on bank deposits.
Expenditure included compensation to accident victims, contribution to the National Road Safety Commission (NRSC), public education and general expenses. This totaled Four Hundred and Eight Thousand Two Hundred and Ninety Ghana Cedis (GH¢408,290.00).
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National Insurance Commission
Investment income, made up of Shares and Treasury Bills stood at One Million Seven Hundred and Thirty Thousand One Hundred and Nineteen Ghana Cedis (GH¢1,730,119.00).
SPONSORSHIP Of INSURANCE INDUSTRy PUBLICITy ACTIvITIES During the year under review, the Commission with the support of the Motor Compensation Fund Committee continued to promote Public Education on Insurance, especially Motor Insurance.
The Commission carried out public education programmes in the Regional and District Capitals. The educational team visited Kumasi, Koforidua, Akim Oda, Assin Fosu, Cape Coast, Jirapa and Wa, to educate commercial drivers and the general public.
Topics for discussions included role and functions of the NIC, the Motor Compensation Fund, Motor Insurance policies, Life Insurance and the Compulsory Fire Insurance for Private Commercial Buildings.
The Public Education in the Regions were successful. The Public appreciated the exposure on Insurance matters.
Indeed the Public response to the Public Educational Programme has been very encouraging. The number of complaints received by the Commission during the year increased as a result of these Public Educational Programmes.
The Commission appreciates these complaints since it affords the NIC the opportunity to address grievances lodged by the Public. Also it enables the NIC determine which Insurance Company is unable to pay claims due to (probably) inadequate funds.
Armed with this information the Commission took the necessary regulatory action against a number of Companies.
At the various radio stations and the public fora, the public requested that NIC offices should be established in at least the Regional Capitals. This they noted will cut down on cost and time. The public observed that instead of travelling to Accra or Kumasi to lodge their complaints; the contact offices will receive the complaints and forward them to Accra for consideration.
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National Insurance Commission
ECONOMIC REvIEw 2010
The global economy in 2010 recovered slowly from the major recession brought about by the global financial, fuel and food crises of 2007- 2008.For most advanced economies, the financial crises left in its toll huge public debt and a fragile financial sector. They are therefore confronted with major adjustment problems, sluggish growth and high unemployment rates. On the other hand, emerging and developing economies recorded vibrant economic activity with some inflationary pressures. This was on the back of rising prices of commodities such as gold, cocoa and coffee.
In West and sub-Saharan Africa, economic recovery has been faster than expected with growth rate of 4.5 percent recorded in 2010 and projected to 5.7 percent in 2011. This compares favourably with the growth rate of 2.0 percent in 2009. In the WAMZ countries, macroeconomic performance for the first half of 2010 showed a significant improvement over the corresponding period in 2009. End of year real growth therefore averaged 7.2 percent, above the 6.3 percent achieved in 2009, and the highest rate achieved since 2003. (Bank of Ghana, 2011)
Inflationary pressures in the sub region similarly eased in almost all countries in the first half of the year, aided to a large extent by availability of food in the region and a relatively stable currency. In tandem with growth in the sub-region, Ghana’s economy recorded a growth of 5.9% in GDP, although shy of the target of 6.5%. The Agriculture sector grew by 4.8 percent, whiles the industry and services sectors grew by 7.0 percent and 6.1 percent respectively. (Ghana Statistical Service, 2010).
Inflation was projected to end the year at 9.2% but remarkably closed the year at 8.6% which was the lowest since June 1992 (2009: 14.78%). Interest rates declined with the benchmark 91-Day Treasury Bill rate ending the year at 12.28% compared to 22.5% in 2009. The Bank of Ghana key policy rate also declined to 13.5% from 18% by December 2010.The cedi also performed well against the major currencies and appreciated against the Pound and Euro by 2.68% and 6.61% respectively but depreciated against the US Dollar by 1.3%. Outlook for 2011
The production of crude oil in commercial quantities began in December 2010. This is expected to push the GDP growth to over 12% in 2011. With the economy set to record double digit growth, it is expected that companies involved in ancillary industries such as energy, insurance and financial services, transportation, and real estate would take advantage of the emerging opportunities as an oil and gas producing nation.
THE INSURANCE MARKET OVERVIEW
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National Insurance Commission
INDUSTRy PERfORMANCE
As has been the trend, the insurance market continued to post positive growth in gross written premium. Total gross premium for year 2010 was GH¢ 458.6million representing a growth rate of 33% from the previous year.
Although there was an increase in the absolute amounts over the five-year period 2006 – 2010, the rate of growth showed some fluctuations. For instance, the rate increased from 27.6% in 2007 to 32.7% in 2008, then fell to about 23%., before rising again to 33% in year 2010 (Refer to table 1 below).
GHANA INSURANCE MARKET REPORT 2006 -10
Table 1: Growth in Total Gross Premium Income (Non-Life and Life) 2006 – 2010
Year
2006
2007
2008
2009
2010
Premium Income (GH¢)
164,207,266
209,554,718
278,255,336
342,973,719
458,694,764
Growth Rate
-
27.6
32.7
23.2
33.0
0
50
100
150
200
250
300
2006 2007 2008 2009 2010
Non-Life
Life
Fig. 1. Growth in Total Gross Premium Income (Life & Non-life)2006 - 2010
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National Insurance Commission
gROSS NON-LIfE PREMIUM INCOME
A greater portion of total industry premiums has always come from the non-life business. Gross premiums from the non-life sector rose from GH¢114.5 million in year 2006 to GH¢271.6million in 2010. The rate of growth has been undulating showing a rise of 23% in 2010 from 18% in the previous year. The effective implementation of the newly approved motor tariffs and the compulsory insurance of buildings are expected to make a positive impact on the growth in premiums (Ref. Table 2 below).
gROSS LIfE PREMIUM INCOME
Life insurance premiums increased at a rate of 52% in 2010 as compared to 34% the previous year, confirming the huge potential for growth in this sector. Gross premium for 2010 increased to GH¢187million from GH¢122.2million in 2009.
This sector has recorded a much higher growth than the non-life for the past 5 years. With the long-term nature of premium and commission payments coupled with innovation with respect to products and channels of distribution, this trend is expected to continue (Ref. Table 3 below).
Table 2: Growth in Gross Premium Income (Non-Life) 2006 - 2010
Year
2006
2007
2008
2009
2010
Premium Income (GH¢)
114,597,969
142,020,077
187,010,274
220,704,263
271, 634,942
Growth Rate
-
23.9
31.6
18.0
23.0
0%
5%
10%
15%
20%
25%
30%
35%
2006 2007 2008 2009 2010
Perc
enta
ge in
crea
se
Figure 2. Growth in Gross Premium Income (Non-Life)2006-2010
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National Insurance Commission
Table 3: Growth in Gross Premium Income (Life) 2006 - 2010
Year
2006
2007
2008
2009
2010
Premium Income (GH¢)
49,609,297
67,534,641
91,245,062
122,269,456
187,059,822
Growth Rate
-
36.1
35.1
34.0
52.0
0.0
50.0
100.0
150.0
200.0
2006 2007 2008 2009 2010
Fig. 3 Growth in Gross Premium income ( Life)2006 -2010
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National Insurance Commission
Tabl
e 4
: Com
pany
Per
form
ance
- N
on-L
ife
Act
iva
Inte
rnat
iona
l
Allian
z In
sura
nce
Col
ina
Insu
ranc
e C
ompa
ny L
imite
d
Don
ewel
l Ins
uran
ce C
ompa
ny L
imite
d
Ente
rpris
e In
sura
nce
Com
pany
Lim
ited
Equi
ty In
sura
nce
Com
pany
Lim
ited
Gha
na U
nion
Insu
ranc
e C
ompa
ny L
imite
d
Glic
o G
ener
al In
sura
nce
Com
pany
Lim
ited
Indu
stria
l & G
ener
al In
sura
nce
Lim
ited
Inte
rnat
iona
l Ene
rgy
Insu
ranc
e C
ompa
ny L
imite
d
Inte
rcon
tinen
tal W
apic
Insu
ranc
e C
ompa
ny L
imite
d
Met
ropo
litan
Insu
ranc
e C
ompa
ny L
imite
d
NEM
Insu
ranc
e G
hana
Lim
ited.
NSI
A In
sura
nce
Gha
na L
imite
d
Phoe
nix
Insu
ranc
e C
ompa
ny L
imite
d
Prim
e In
sura
nce
Com
pany
Lim
ited
Prov
iden
t In
sura
nce
Com
pany
Lim
ited
Qua
lity
Insu
ranc
e C
ompa
ny L
imite
d.
Rege
ncy
Allian
ce In
sura
nce
Com
pany
Lim
ited
SIC
Insu
ranc
e C
ompa
ny L
imite
d
Sta
r A
ssur
ance
Com
pany
lim
ited
Uni
que
Insu
ranc
e C
ompa
ny L
imite
d
Vang
uard
Ass
uran
ce C
ompa
ny L
imite
d
TOTA
L
2,21
8,2
89 -
133,
956
3,15
9,3
56
13,9
97,4
00 -
4,3
13,9
47
1,885,6
50
1,115
,684 - -
10,9
50
,99
9 -
2,571
,531
1,326
,125 -
2,6
50
,388
3,0
34,10
2
108,3
91
44
,581
,80
0
7,573
,00
0
3,15
9,3
56
10,0
52,
080
114
,597
,96
9
2,9
99
,352 -
97,3
09
7,21
3,87
9
16,5
35,0
00 -
5,6
06
,553
3,28
5,9
72
1,234
,76
9 - -
12,5
56
,397
-
3,91
8,0
00
2,4
12,8
57
44
7,4
00
3,4
18,4
42
4,2
10,8
20
-
52,
80
5,5
58
10,11
4,7
89
3,9
43,
889
11,2
19,0
91
142,
020
,077
6,16
3,0
21
-
64
,74
0
9,4
25,5
67
19,8
86
,00
0
552,
530
7,59
6,9
10
7,18
7,19
5
728,2
63
1,00
8,2
50 -
15,11
6,7
92
-
5,3
36,0
00
6,0
47,
784
1,36
8,5
47
3,6
97,9
96
5,8
88,5
46
341,6
61
58,0
32,0
81
15,8
88,6
16
4,3
83,
577
18,2
96
,198
187,
010
,274
10,0
57,
50
0 - -
9
,026
,829
26
,40
3,0
00
2
,670
,474
7
,651
,922
5,7
71,4
64
80
2,538
4
,936
,276
2,17
5,2
88
22
,683,
972
398,2
51
6
,233
,00
0
6,6
54
,036
1,79
4,4
34
4
,873
,671
5,2
80
,697
2,
057,
774
56
,877
,215
19
,132,
991
4
,092
,148
21,1
30,7
83
220
,70
4,2
63
10,7
59
,270
4,7
57,
145
382,
833
11,5
59
,429
28,16
3,0
00
4,2
68,5
95
8,9
42,
741
10,0
17,7
57
1,26
3,59
6
7,10
3,26
4
4,8
28,5
63
25,7
73,10
8
1,658,4
43
4,2
58,16
1
9,0
41,9
92
1,60
3,834
6,3
36,4
57
7,0
72,2
53
2,534
,50
4
64
,04
2,76
5
28,16
8,7
10
4,2
57,
89
8
24,8
40
,624
271,6
34,9
42
Com
pany
200
6 (
GH
¢)20
07
(GH
¢)20
08 (
GH
¢)20
09
(G
H¢)
2001
0 (
GH
¢)
Annual Report 2010 19
National Insurance Commission
Tabl
e 5:
Com
pany
Per
form
ance
- L
ife
Cap
ital E
xpre
ss A
ssur
ance
(G
h) L
imite
d
Don
ewel
l Life
Insu
ranc
e C
ompa
ny L
imite
d
Ente
rpris
e Li
fe A
ssur
ance
Com
pany
Lim
ited
Expr
ess
Life
Ass
uran
ce C
ompa
ny L
imite
d
Gha
na L
ife In
sura
nce
com
pany
Lim
ited
Gha
na U
nion
Ass
uran
ce C
ompa
ny L
imite
d
Gol
den
Life
Ass
uran
ce C
ompa
ny L
imite
d
Glic
o Li
fe In
sura
nce
com
pany
Lim
ited
IGI L
ife In
sura
nce
com
pany
Lim
ited.
Met
Life
Insu
ranc
e G
hana
Lim
ited
Phoe
nix
Life
Insu
ranc
e co
mpa
ny L
imite
d.
Prov
iden
t Li
fe A
ssur
ance
Com
pany
Lim
ited
Qua
lity
Life
Ass
uran
ce C
ompa
ny L
imite
d
SIC
Life
Insu
ranc
e co
mpa
ny L
imite
d
Star
life
Ass
uran
ce C
ompa
ny L
imite
d
Uni
que
Life
Ass
uran
ce C
ompa
ny L
imite
d
Vang
uard
Life
A
ssur
ance
Com
pany
Lim
ited
TOTA
L
653
2,37
7,18
6
6,5
15,9
48
2,13
6,9
70
220
,725
738,7
80
7,0
44
,878
73,4
94
3,4
68,9
83
616
,66
8
2,4
43,
293
1,021
,60
2
14,2
36,3
00
4,0
94
,492
275,3
18
4,2
36,6
97
49
,60
9,2
97
0
3,86
6,9
90
10,14
7,887
2,26
9,7
88
422
,113
790
,00
0
10,6
56
,011
70,6
36
4,8
20,0
00
1,038
,761
1,06
8,4
88
1,317
,270
21,2
18,7
73
5,6
03,
271
308,4
12
3,853,
238
67,5
34,6
41
0
3,59
6,6
68
15,4
29,8
97
2,74
2,0
89
597
,157
1,14
3,6
59
12,0
48,19
3
111,4
48
6,7
05,0
00
1,330
,109
3,6
00
,450
1,70
5,8
02
27,7
51,0
00
8,19
6,5
08
491
,149
5,7
95,9
33
91,2
45,0
62
90
,138
4,7
84
,553
23,3
10,7
41
130
,071
3,01
1,222
1,238
,60
3
96
4,9
90
16,6
43,
126
138,18
3
7,22
2,0
00
1,90
0,0
00
4,12
9,4
88
2,576
,071
33,8
69
,675
12,3
31,19
1
1,282,
342
8,6
47,
06
2
122,
269
,456
99
,152
6,3
51,9
50
40
,104
,733
54
1,20
8
3,892
,880
1,592
,411
1,450
,978
21,0
63,
014
236
,887
10,7
71,0
00
2,70
2,72
2
9,0
08,8
45
3,4
39,8
27
48,0
42,
703
18,0
36,5
62
2,6
92,10
1
17,0
32,8
49
187,
059
,822
Com
pany
200
6 (
GH
¢)20
07
(GH
¢)20
08 (
GH
¢)20
09
(G
H¢)
2001
0 (
GH
¢)
20 Annual Report 2010
National Insurance Commission
REINSURANCE PREMIUM INCOME
Contrary to the popular assertion that the performance of reinsurers mimic that of their reinsureds to a large extent, for some reason, this was not the case for year 2010. Whereas direct insurers recorded a positive growth in gross premiums, non-life premiums for the reinsurers decreased by 7%. Also, gross premiums for life increased slightly by 9% in 2010 compared to 32% in 2009 for direct insurers.
This turn of events could be attributed to a number of reasons including the possibility of an adverse effect of the withdrawal of the 20% compulsory cession to Ghana Reinsurance Company Limited. It is also likely that insurance companies have begun increasing their own capacities in preparation for the proposed recapitalization in 2012.
Table 6: Growth in Gross Premium Income - Reinsurance (Non-Life) 2006 – 2010
Year
2006
2007
2008
2009
2010
Premium Income (GH¢)
32,017,476
38,399,239
53,383,694
56,780,084
52,768,054
Growth Rate
-
19.9
39.0
6.3
-7.0
Table 7: Growth in Reinsurance Gross Premium Income (Life) 2006 – 2010
Year
2006
2007
2008
2009
2010
Premium Income (GH¢)
820,180
541,500
1,156,607
1,528,296
1,681,125
Growth Rate
-
-33.9
113.6
32.1
9.0
-10%
0%
10%
20%
30%
40%
2006 2007 2008 2009 2010
Fig. 4 Growth in Premium Income - Reinsurance (Non-life)2006 - 2010
Annual Report 2010 21
National Insurance Commission
Clearly, competition gets stiffer each year especially with the presence of foreign companies on the Ghanaian insurance market hence, local reinsurers must enhance their services to enable them compete favourably with their foreign counterparts who pride themselves in their international ratings.
PREMIUM INCOME By CLASS Of BUSINESS (2006 - 2010) Motor insurance continued to be the highest contributor of gross premiums for the non-life sector. Total premium for this line of business was GH¢123.9 million in 2010 from a previous year’s figure of GH¢105.6 million. It is obvious from the table 8 below that premiums have been increasing at a decreasing rate.
There has been a 30% upward review in motor tariffs and this is expected to make an impact in the growth of premiums if companies commit to its effective implementation.
Accident business contributed the second highest premiums in the non-life class. Total premium was GH¢71.8 million and a market share of 15.7%, representing an increase of nearly GH¢23 million over the 2009 figure. Market share has just started picking up after two falls. In Ghana, various policies are underwritten as part of accident business.
Total gross premium for fire insurance for 2010 was GH¢56.2 million from GH¢50.06 million in the preceding year. All is set for the implementation of sections 183 and 184 of Insurance Act, 2006 (Act 724) with effect from August 1, 2011. With this, all commercial buildings including those under construction will be required to insure against the risk of fire among others. This is expected to significantly improve this line of non-life business.
Marine insurance contributed GH¢13.6 million in terms of gross premiums in 2010 which represented 3% of total market share. In 2009 its share was almost GH¢10 million and has always been the least contributor with regards to total market premiums. Insurance companies should be proactive and explore ways of developing this line of business.
Total premium for life insurance has increased steadily over the period. This sector has gained 10.5% market share between 2006 and 2010, which is very remarkable. One thing worth noting is the introduction of new distribution channels including brokers and banks.
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
2006 2007 2008 2009 2010
Fig. 5 Growth in Premium Income - Reinsurance (Life) 2006 - 2010
22 Annual Report 2010
National Insurance Commission
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010
Prem
ium
inco
me
(GH
C'm
)
Fig. 6 Premium Income by Class of Business
Motor
Accident
Marine
Fire
Others
Life/Health
Table 8: Premium Income Distribution By Class of Business 2006 -2010
Company 2006 (GH¢) 2008 (GH¢)
Motor
Accident
Marine
Fire
Others*
Life/Health
TOTAL
59,033,790
22,337,533
9,770,860
23,455,786
-
49,609,297
164,207,266
91,446,150
49,344,756
13,108,818
31,061,200
2,049,350
91,245,062
278,255,336
% %
35.9
13.6
6.0
14.3
-
30.2
100
32.8
17.7
4.8
11.2
0.8
32.7
100
2007 (GH¢)
69,068,858
37,917,457
9,964,215
24,646,192
423,355
67,534,641
209,554,718
%
32.9
18.1
4.9
11.7
0.2
32.2
100
2009 (GH¢)
105,735,687
48,847,550
9,943,457
50,061,172
6,154,637
122,269,456
342,973,719
%
30.9
14.2
2.9
14.6
1.7
35.7
100
2010 (GH¢)
123,911,210
71,838,607
13,660,848
56,228,355
5,995,923
187,059,822
458,694,764
%
27.0
15.7
3.0
12.3
1.3
40.7
100
*Includes Travel and Bonds
Table 9: Premium Income by Class of Business (2010)
Class of Business
Motor
General Accident
Burglary
Workmen’s Compensation
Personal Accident
Public /Bankers Liability
Engineering/CAR
Marine Cargo
Marine Hull/Aviation
Fire
Others (incl. Travel, Bonds)
Total
Amount (GH¢)
123,911,210
54,399,841
412,428
651,571
1,717,364
5,093,721
7,091,320
12,671,390
989,458
56,228,355
8,468,285
271,634,942
Annual Report 2010 23
National Insurance Commission
THE BROKER MARKET
Six (6) new broking firms were licensed bringing the total number of insurance brokers in the industry to forty-eight (48) in the year 2010.
PERfORMANCE Of THE BROKINg COMPANIES
Total market brokerage earned for year 2010 was GH¢16.5milion representing a growth rate of 18% from the previous year. There was however a fall in growth of 19%.
As at the time of compiling this report, 36 broking firms had submitted their audited accounts for 2010. A 10% increase was projected for some six companies whose audited accounts are yet to be submitted to the Commission.
Table 10: Brokerage Earned (2006 – 2010)
Company 2006 (GH¢) 2007 (GH¢) 2008 (GH¢) 2009 (GH¢) 20110 (GH¢)
AG & Assoc.***
All Risks
Alliance
Allied
Alpha
Akoto Risk
Apex
Ark
Asterix
Ceris
Claim
Crown
Danniads
Double D & M***
Dynamic
Edward Mensah, Wood
First Anchor
Ghana Int’l Ins.
Global Impact
Gras Savoye
Horizon
Insurance Centre
Insurance Consultancies
Int’l Consortium
Inter-Africa***
Jerock***
202,245
172,577
3,287
-
133,347
14,205
27,506
-
-
242,467
234,780
252,623
61,213
18,006
941,097
14,258
-
75,337
-
125,015
-
229,891
31,838
5,164
36,342
251,295
-
11,198
-
165,316
32,421
45,132
-
66,116
252,469
290,613
332,527
76,104
19,543
1,080,230
21,777
5,438
55,666
3,640
226,286
39,519
180,551
36,970
6,524
43,637
275,864
-
19,354
263,384
190,263
40,643
101,520
7,344
70,596
266,957
428,168
453,737
73,183
60,656
1,610,991
52,766
152,866
57,229
382,505
273,906
49,695
185,279
40,717
15,747
58,616
142,060
433,917
-
44,747
338,017
347,613
94,381
73,564
61,061
152,850
309,648
867,720
498,336
88,550
183,432
2,154,277
264,633
74,112
57,116
976,702
605,721
105,399
300,975
22,512
25,545
68,164
129,145
524,748
-
11,727
267,071
242,446
50,330
55,178
34,364
100,598
323,408
682,447
454,828
80,501
105,718
2,052,984
140,462
150,900
57,948
584,334
540,603
59,967
224,952
41,418
23,222
61,967
24 Annual Report 2010
National Insurance Commission
Similar to the growth in gross premiums, gross brokerage has shown some fluctuations in the rate of growth. The rate increased sharply in year 2008 to 46.1% but has plummeted since. It is evident from the individual performance that whereas some companies increased their incomes significantly, others lost drastically. It is possible that some companies are not striving hard enough.
Note: ***A 10% increase in gross earnings has been projected for companies whose audited accounts for year 2010 had not been submitted as at the time of this report..
KEK
KEK Reinsurance
Lordship
Manyo-Plange***
Marine & Gen.
Maxpal Interm.
Midas***
Newland Risk
Premier Brokers
Progressive
Prudent
Safety
Saviour
Shield
Trans-National
Tri-Star
UD Ins. Serv.
Universal
TOTAL
2,642,328
-
27,032
13,183
125,216
46,010
-
122,617
-
23,784
65,233
157,216
17,275
-
102,364
171,266
3,458
117,878
6,283,451
2,191,152
63,367
39,715
19,278
193,456
58,911
-
112,707
-
56,399
77,132
324,055
19,155
-
150,977
264,602
4,125
127,024
6,945,054
2,756,246
302,231
135,991
28,502
217,186
65,901
38,962
124,884
-
67,833
104,058
534,470
68,152
-
116,070
297,975
-
154,258
10,144,705
4,600,233
596,383
172,384
44,216
278,837
145,942
196,720
94,073
10,240
255,338
212,321
624,461
51,952
84,215
176,510
582,382
-
142,723
16,558,982
3,868,654
540,846
120,038
40,196
213,486
86,916
178,835
108,773
-
167,664
122,274
545,373
65,287
23,135
208,129
521,096
-
171,593
13,983,561
Earnings of top 10 companies
Percentage of top 10 companies
5,207,260
82.8
5,406,685
77.8
7,316,093
72.1
11,505,215
69.0
10,315,913
73.8
Table 11: Growth in Commissions Earned 2006 - 2010
Year
2006
2007
2008
2009
2010
Commission Earned (¢)
6,283,481
6,945,054
10,144,705
13,983,561
16,558,982
Growth Rate (%)
24.0
10.5
46.1
37.0
18.0
Annual Report 2010 25
National Insurance Commission
The market could also do with changes in their operations. For instance, small companies may consider merging to create very strong ones, or performing other services for which fees could be charged.
The top ten broking companies contributed GH¢11.5million representing 72% of the total commissions earned in 2010 as against 73.7% the preceding year. The top 5 companies contributed 55%. KEK Insurance Brokers Limited continued to be the highest earner (contributing 27% of overall income), followed by Edward Mensah, Wood and Associates Limited with 13%.
It is worthy to note that Gras Savoye Ghana Limited, a French company that was incorporated in October, 2006 earned the 3rd highest income. Crown Brokers Limited became the 4th highest, whilst Safety Insurance Brokers Limited retained its 5th position (Refer to table 10 above).
INSURANCE AgENTS
There are about 4,000 tied active agents in Ghana. The National Association of Ghana Insurance Agents (NAGIA), an umbrella body for insurance agents, governs most of these.
Hitherto the Commission had licensed individual agents who sell for one specific insurance company. In a bid to increase market share, companies have discovered new ways of distributing their products, leading to the establishment of bancassurance partnerships. With this, banks are licensed as corporate agents to sell insurance products to their clients and earn some commission in return. So far, Seven banks have been licensed as such.
0
5
10
15
20
2006 2007 2008 2009 2010
Fig. 7 Brokearage Earned ( 2006 - 2010)
Year
Brok
erag
e (G
HC'
m)
Table 12: Contributions of Top 10 Companies 2006 - 2010
Year
2006
2007
2008
2009
2010
Commission Earned (GH¢)
6,283,481
6,945,054
10,144,705
13,963,713
16,558,982
Earnings by Top 10 Companies
5,207,260
5,406,685
7,316,093
10,315,792
11,939,132
26 Annual Report 2010
National Insurance Commission
INTRODUCTION
Whereas the Life sector grew by 52% from 2009 to 2010, the non-life sector grew by just 23% in terms of gross premium income. Generally, by all indicators, the life sector appears to be growing much faster than the non-life sector. The various growth and performance indicators are summarized in the tables below.
The industry average key performance indicators (ratios) are presented in the tables below for non-life and life respectively
INSURANCE MARKET FINANCIAL AND R ATIO ANALYSIS
Table 13: Key Growth Indicators (LIFE) 2009 - 2010
Indicator
Premium Income
Total Assets
Total Investments
Actuarial Liabilities
Total Capitalisation
2009 (GH¢’ m)
122.3
252.1
172.3
167.0
70.7
2010 (GH¢’ m)
187.0
366.8
235.1
243.0
89.5
Growth Rate
52%
45%
36%
44%
31%
Table 14: Key Growth Indicators (NON-LIFE) 2009 - 2010
Indicator
Premium Income
Premium Debtors
Total Assets
Total Investments
Technical Provisions
Total Capitalisation
2009 (GH¢’ m)
220.8
130
471
211.3
129
220.8
2010 (GH¢’ m)
271.6
125.6
582
231.6
139.7
312.6
Growth Rate
23%
-3%
24%
10%
9%
42%
Annual Report 2010 27
National Insurance Commission
Table 17: Gross Premium Growth and Penetration
Year
2005
2006
2007
2008
2009
2010
Gross Premium Income (GH¢)
122,325,795
164,207,266
209,457,409
276,494,733
343,072,874
458,694,769
Insurance Penetration
1.26%
1.40%
1.49%
1.58%
1.58%
1.89%
Growth Rate (%)
32.1
34.2
27.5
32.0
23.2
33.0
Table 15: Industry Average Ratios (Non-life) 2007 - 2010
RATIO
Claims (%)
Expense (%)
Combined (%)
Retention (%)
Investment Income as a % of Investments (%)
Investment Income as a % of Premiums (%)
Gross Premium to Equity
Outstanding premiums as % of Gross Premium (%)
Outstanding premiums as a % of Total Assets (%)
Investments to Total Assets (%)
Underwriting Profit as a % of Gross Premium (%)
Return on Assets (%)
Return on Equity (%)
2010
17
41
58
71
12
9
1.8x
43
27
40
-2
2
4
2009
18
43
61
72
14
7
1.9x
44
29
39
-6
6
10
2008
17
34
51
62
9
6
1.8x
43
29
45
2
9
21
2007
16
30
46
64
10
6
1.9x
34
25
52
4
6
18
Table 16: Industry Average Ratios (Life) 2007 - 2010
RATIO
Claims (%)
Expense (%)
Combined (%)
Retention (%)
Investment Income as a % of Investments (%)
Investment Income as a % of Premiums (%)
Gross Premium to Equity
Underwriting Profit as a % of Gross Premium (%)
Return on Equity (%)
Return on Assets (%)
Investments to Total Assets(%)
2010
34
43
77
98
12
16
2.4x
-21
10
2
67
2009
39
59
98
96
16
26
3.9x
-49
-12
-5
62
2008
36
40
76
96
11
18
2.0x
-16
16
4
72
2007
31
32
63
98
6
16
1.2x
-16
7
7
72
28 Annual Report 2010
National Insurance Commission
CLAIMS RATIO:
The Claims ratio, which is the percentage of claims incurred to gross premiums, measures underwriting efficiency. The lower the ratio, the better the underwriting efficiency. In Life business, claims are made up of surrenders, withdrawals and maturities. The claim ratios of the life companies for the four-year period under review are significantly higher than those for the non-life companies. This is because of the high surrender and withdrawal rates.
PERFORMANCE INDICATORS
LIFE COMPANIES
Table 18: CLAIMS RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterpirse Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
31
-
-
13
-
77
0
32
68
54
33
10
19
16
52
31
55
41
2008
36
-
29
18
-
55
14
40
51
71
40
20
50
21
56
31
20
53
2009
39
1
43
20
1
76
15
41
31
57
36
22
72
21
59
31
17
45
2010
34
-
44
17
2
57
42
52
34
43
30
31
19
20
49
33
21
56
Annual Report 2010 29
National Insurance Commission
The industry average ratio fell from 39% in 2009 to 34% in 2010. The ratios of Glico Life, Ghana Life, Vanguard Life and SIC Life are significantly above the industry average. However, the ratios of Enterprise Life, Unique Life and Quality Life are below the industry average. Express Life recorded a very low ratio because it is still relatively new. Provident Life recorded the most dramatic change from 72% in 2009 to 19% in 2010.
ExPENSE RATIO
The Expense ratio is the percentage of total management expenses to gross premiums. The lower the ratio, the better in terms of management efficiency.
The industry average dropped from 59% in 2009 to 43% in 2010. The ratios of SIC Life, GLICO Life and Enterprise Life have consistently been below the industry average for the four-year period under review. However, the ratio for Metropolitan Life, Golden life, Unique life and Phoenix Life have consistently been above the industry average. The significantly higher ratios for IGI Life for the four-year period is because of low business volumes, which are not able to support current overhead expenses.
Table 19: EXPENSE RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
32
-
-
27
-
35
-
23
44
66
61
49
19
12
19
44
82
32
2008
40
-
39
28
-
35
43
31
52
236
53
62
37
50
22
40
96
25
2009
59
546
51
26
581
57
39
28
87
201
60
67
43
48
24
36
87
28
2010
43
-
54
23
174
53
36
27
85
200
57
64
23
45
22
32
67
21
30 Annual Report 2010
National Insurance Commission
COMBINED RATIO
This is calculated as Total Claims + Total Management Expenses divided by Gross Premium. It is combination of the claims and management ratios.
The industry average fell from 98% in 2009 to 96% in 2010. The ratios of Ghana Life, Golden Life and Unique Life are significantly above the industry average. However, the ratios of IGI Life for the four-year period is dangerously high.
Table 20: COMBINED RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
63
-
-
40
-
112
-
56
112
120
93
59
38
28
70
75
137
73
2008
76
-
68
46
-
90
57
71
103
307
93
82
86
70
77
71
116
79
2009
98
547
94
45
583
133
53
69
118
258
96
89
115
69
83
67
104
72
2010
96
-
98
40
176
110
78
79
119
243
87
95
42
65
71
65
88
77
Annual Report 2010 31
National Insurance Commission
RETURN ON EqUITy RATIO
Return on Equity is the Net Profit after tax as a percentage of Shareholders’ funds (Equity). It measures the profitability of the companies; the higher the percentage, the more profitable the company.
The industry average ratio moved from negative 12% in 2009 to positive 10% in 2010. The ratios of Enterprise Life for the four-year period under review indicates a good performance. However, the ratios of Golden Life, Express Life, IGI Life and Donewell Life for 2010 are because of operational losses worsened by inadequate capitalisation.
Table 21: RETURN ON EQUITY RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
7
-
-
39
-
173
1
43
1
12
-246
24
1
17
12
3
1
28
2008
16
39
160
43
-
15
5
12
59
26
-102
3
5
1
10
26
16
33
2009
- 12
-71
-108
29
-96
5
12
26
41
-30
-351
17
-226
9
-8
18
-26
-1
2010
- 10
-
-65
55
-108
23
22
-5
-111
-507
-0.5
8
38
26
-5
15
-32
2
32 Annual Report 2010
National Insurance Commission
RETENTION RATIO
Retention ratio is a risk management ratio. This ratio measures the percentage of Net Premiums to Gross Premiums. It indicates the portion of the underwritten risks that has not been passed on to reinsurers.
With the exception of Ghana Union Assurance life, all the companies reinsured less than 10% of their business in both 2009 and 2010. The rather high retention in the Life sector is due to the fact that the average sum insured per policy is quite low and can therefore be retained by the companies. However, there is the need to check for concentration and aggregation of risks.
Table 22: RETENTION RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
98
-
-
98
-
100
-
100
100
100
98
92
98
100
99
100
99
98
2008
96
-
100
99
-
100
77
99
80
100
99
91
100
99
100
100
99
96
2009
96
100
100
98
100
100
60
99
91
100
99
94
100
99
100
100
99
97
2010
98
-
99
98
100
100
81
99
94
100
99
96
100
100
100
100
99
99
Annual Report 2010 33
National Insurance Commission
INvESTMENT INCOME AS A PERCENTAgE Of TOTAL INvESTMENT RATIO
Investment Income as a percentage of Total Investments measures the rate of return on investments. It gives an indication of the quality of the investments made and held by the various companies.
The industry average fell from 16% in 2009 to 12% in 2010 mainly due to the decline in interest rates. Provident Life, Quality Life, Unique Life and Ghana Union Assurance Life consistently showed good ratios from 2008 to 2010. However, Golden Life and IGI Life showed low ratios and falling trends for the four-year period.
Table 23: INVESTMENT INCOME AS A PERCENTAGE OF TOTAL INVESTMENT
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
6
-
-
7
-
16
1
6
2
2
15
6
5
12
7
9
7
9
2008
11
-
11
8
-
11
17
6
2
6
28
10
17
13
9
9
16
14
2009
16
26
17
16
26
17
17
9
10
10
21
12
20
22
18
11
21
14
2010
12
-
9
12
21
10
17
6
7
10
12
5
14
17
7
9
16
11
34 Annual Report 2010
National Insurance Commission
The industry average dipped from 26% in 2009 to 16% in 2010. The ratios of Metropolitan Life, Quality Life and Unique Life for the four-year period are all above the industry average. However, the ratios of Vanguard Life, Golden Life and Phoenix Life are all below the industry average for the four-year period under review.
Table 24: INVESTMENT INCOME AS A PERCENTAGE OF PREMIUM RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
16
-
-
9
-
27
-
7
10
22
32
10
23
26
10
16
49
12
2008
18
-
16
11
-
24
41
11
3
59
27
16
29
26
15
16
51
16
2009
26
41
16
20
126
32
37
15
13
34
40
17
25
41
22
21
41
13
2010
16
-
9
17
22
15
21
12
6
7
27
8
16
34
11
15
21
9
INvESTMENT INCOME AS A PERCENTAgE Of PREMIUM RATIO
Investment Income as a Percentage of Premium compares a company’s income from investment to its premium income. This ratio measures the extent of support from investment income. It indicates both the quality and adequacy of the investments. This is very relevant considering the fact, that life companies usually make underwriting losses and have to depend on income from investments to make profits.
Annual Report 2010 35
National Insurance Commission
gROSS PREMIUM TO EqUITy RATIO
The Premium Equity ratios try to assess the capital adequacy of insurance companies. This ratio measures how much capital is available to support the premiums underwritten by a company. The industry average ratio of 2.4 for 2010 means that GH¢1 of capital supports as much as GH¢2.4 of gross premium.
The benchmark or industry best practice is however pegged at 2.0. This means that a ratio significantly above 2.0 indicates that the company may be overtrading whiles a ratio which is well below 2.0 may mean that the company is not writing enough business to optimise its capital. The ratios of Ghana Life, Ghana Union Assurance Life and Express Life are far below the industry average and the benchmark. The ratio of Vanguard Life for the four-year trend under review is out of range, whereas the ratio of Donewell Life is due to operational losses.
Table 25: GROSS PREMIUM TO EQUITY RATIORATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
1.2
-
-
1.9
-
-1.3
-
2.5
0.2
0.1
7.7
1.1
1.1
1.1
0.9
0.9
0.3
3
2008
2.0
-
8.4
1.8
-
1.2
0.6
0.9
1.9
0.1
26.6
1.3
3.4
1.4
0.9
2.9
0.6
2.9
2009
2.9
0.2
2.7
2.3
0.2
1.0
1.1
1.0
0.8
0.2
9.2
1.5
12.6
2.0
1.5
2.6
0.7
4.5
2010
2.4
-
-1.7
2.3
0.7
1.5
1.1
0.8
2.1
2.2
1.9
1.7
2.6
2.1
2.6
2.1
1.8
4.3
36 Annual Report 2010
National Insurance Commission
The industry average ratio dropped from 2.8 in 2009 to 2.0 in 2010. There does not appear to be much difference between the Gross and Net ratios because of the rather very high reinsurance retentions by the Life companies.
Table 26: NET PREMIUM TO EQUITY RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
1.2
-
-
1.9
-
-1.3
-
2.5
0.2
0.1
7.6
1
1
1.1
0.9
0.9
0.3
2.9
2008
1.9
-
8.4
1.8
-
1.2
0.5
0.9
1.5
0.1
26.3
1.1
3
1.4
0.9
2.9
0.6
2.8
2009
2.8
0.2
2.7
2.2
0.2
1.0
0.6
1.0
0.7
0.2
9.1
1.4
12.6
2.0
1.5
2.6
0.6
4.3
2010
2
-
-1.6
2.3
0.7
1.5
0.9
0.8
2.0
2.2
1.9
1.6
2.6
2.1
2.6
2.1
1.8
4.3
NET PREMIUM TO EqUITy RATIO
The Net Premium to Equity ratio does the same function as the gross premium to equity ratio. The only difference is that the net Premium to equity ratio measures the relation of the Net Premium and not the Gross Premium of a company to its capital.
Annual Report 2010 37
National Insurance Commission
UNDERwRITINg PROfIT AS A PERCENTAgE Of gROSS PREMIUMS RATIO
This ratio measure underwriting profits as a percentage of gross premiums. It generally tries to ascertain the portion of the gross premiums that is available to contribute towards profits. It is calculated by expressing underwriting profit as a percentage of gross premiums. Underwriting profits for this purpose is defined as net earned premiums minus commissions, claims and management expenses.
All the Life companies made underwriting losses in 2010. This can be attributed mainly to the very high expense and combined ratios.
Table 27: UNDERWRITING PROFIT AS A PERCENTAGE OF GROSS PREMIUMS RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
-16
-
0
-3
-
-159
-
5
-20
-201
-39
-2
-22
-10
-3
-12
-46
-21
2008
-16
-
-62
0.4
-
-11
3
2
-35
-357
-6
-18
-28
-27
-5
-10
-24
-5
2009
-49
-409
-58
1
-574
-58
-3
10
-56
-264
-70
-22
-43
-36
-28
-15
-81
-13
2010
-21
-
-2
-6
-170
-35
-16
-21
-55
-237
-38
-30
-1
-22
-13
-10
-39
-9
38 Annual Report 2010
National Insurance Commission
The industry average rose from 62% in 2009 to 67% in 2010. The ratios of Ghana Life, Donewell Life and Golden Life from 2008 to 2010 gives a clear indication of inadequate investments. However, the ratios of IGI Life, Express Life and Golden Life are too low for comfort.
Table 28: NET PREMIUM TO EQUITY RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
72
-
-
84
-
76
-
68
73
79
83
76
75
74
73
72
96
72
2008
72
34
50
91
-
67
84
76
68
75
52
75
76
69
76
83
76
72
2009
62
23
31
90
63
55
18
73
41
42
73
72
73
75
59
89
62
71
2010
67
-
51
91
39
53
86
79
34
20
73
79
80
79
75
83
72
73
INvESTMENT TO TOTAL ASSETS RATIO
Investment to total asset ratio measures the portion of a company’s asset that are in real investments and is therefore readily available to be converted into cash to settle liabilities. In a way, it gives an indication of the quality of the company’s assets.
Generally, the life companies have better ratios than the non-life mainly because the life companies do not have the problem of outstanding debtors that deprive them of investible funds.
Annual Report 2010 39
National Insurance Commission
RETURN ON ASSETS RATIO
This ratio measures the return that a company makes on the assets it employs in its operations. It is calculated as the net profit before tax divided by total assets.
All the Life companies made underwriting losses in 2010. This can be attributed mainly to the very high expense and combined ratios.
Table 29: RETURN ON ASSETS RATIO
Company
Industry Average
Capital Express Assurance (Ghana) Limited
Donewell Life Insurance Company Limited
Enterprise Life Assurance Company Limited
Express Life Insurance Company Limited
Ghana Life Insurance Company Limited
Ghana Union Assurance Life Company Limited
GLICO Life Insurance company Limited
Golden Life Assurance Company Limited
IGI Life Assurance (Ghana) Limited
Metropolitan Life Insurance Company Limited
Phoenix Life Assurance Company Limited
Provident Life Assurance Company Limited
Quality Life Assurance Company Limited
SIC Life Company Limited
StarLife Assurance Company Limited
Unique Life Assurance Company Limited
Vanguard Life Assurance Company Limited
Percentage (%)
2007
7
-
-
14
-
60
1
10
-1
-10
-12
16
-
5
6
2
9
-5
2008
4
-
-6
16
-
4
3
5
15
19
-2
2
1
0
5
4
-16
7
2009
3
-59
-12
9
-58
1
6
12
16
-16
-15
5
-11
2
-2
3
-13
0
2010
2
-
-21
17
-55
5
15
-2
-21
-66
0
2
10
5
1
4
-10
0
40 Annual Report 2010
National Insurance Commission
LIfE INSURANCE INDUSTRy AggREgATED BALANCE SHEET
Table 30: LIFE INSURANCE INDUSTRY AGGREGATED BALANCE SHEET AS AT 31 DEC., 2009
Stated Capital
Capital Surplus
Income Surplus
Contingency Reserve
Shareholders’ Funds
REPRESENTED BY:
Fixed Assets
Investment Properties
Long Term Investments
Current Assets
Policy loans
Other Debtors/Loans
Amount due from reinsurers
Taxation
Short term investments
Cash funds/resources
Current Liabilities
Provision for unearned Premiums
Provision for claims
Amount due to reinsurers
Bank Overdraft
Creditors
Taxation
Proposed Dividend
Net Current Asset/Liabilities
Actuarial Liabilities
Other Long Term Liabilities
Net Assets/Liabilities
2010
GH¢
78,255,465
11,794,977
(4,819,982)
4,332,913
89,563,373
21,961,695
45,883,752
69,042,222
136,887,669
19,732,717
27,394,720
106,275
344,893
158,582,098
23,784,992
229,945,695
205,214
45,288
1,418,499
22,593,041
221,612
916,291
25,799,945
204,145,750.00
243,010,046
8,460,000
251,470,046
89,563,373
2009
GH¢
56,916,168
13,871,044
(3,281,561)
3,190,4160
70,696,067
19,463,644
19,440,054
45,216,391
84,120,089
15,157,726
23,569,485
304,904
382,882
108,196,591
20,376,799
167,988,387
-
1,057,0270
703,737
725,236
11,301,060
187,414
387,268
14,361,742
153,626,645
166,980,073
70,594
167,050,667
70,696,067
Notes
1
2
3
Annual Report 2010 41
National Insurance Commission
Table 31: NOTES TO THE LIFE INDUSTRY AGGREGATE BALANCE SHEET
Note 1 - Fixed Assets
Land & Buildings
Furniture, Fittings & Equipment
Motor Vehicles
Work in Progress
Intangibles
Computer Equipment
NOTE 2 - LONG TERM INVESTMENTS
Quoted Shares
Unquoted shares
Government Bonds
Others
Corporate Bonds
NOTE 3 - SHORT TERM INVETSMENTS
Treasury bills
Fixed Deposits
Call accounts
Unit trusts
Bonds
2009
GH¢
9,895,018
2,455,105
3,075,843
2,709,490
122,525
1,205,663
19,463,644
25,985,916
6,890,335
315,707
11,874,465
149,968
45,216,391
29,081,505
74,709,663
2,804,377
1,032,039
569,007
108,196,591
2010
GH¢
10,894,874
3,032,186
3,599,111
1,912,419
506,687
2,016,418
21,961,695
42,136,798.
19,626,760
3,203,751
3,869,973
204,940
69,042,222
29,460,443
125,656,862
2,711,000
753,793
158,582,098
Table 29: MAKE UP OF ASSETS
Fixed Assets
Investment Properties
Long Term Investments
Investments in Subsidiaries
Policy Loans
Other Debtors
Amount Due from reinsurers
Taxation
Short term investments
Cash funds/resources
2009
GH¢
19,463,644
19,440,054
45,216,391
-
15,157,726
23,569,485
304,904
382,882
108,196,591
20,376,799
252,108,476
2010
GH¢
21,961,695
45,883,752
69,042,222
-
19,732,717
27,394,720
106,275
344,893
158,582,098
23,784,992
366,833,364
%
7.7
7.7
17.9
0.0
6.0
9.3
0.1
0.2
42.9
8.1
100
%
6.0
12.5
18.8
0.0
5.4
7.5
0.0
0.1
43.2
6.5
100
42 Annual Report 2010
National Insurance Commission
CLAIMS RATIO
The Claims ratio which is the percentage of claims incurred to Gross Premiums, measures under-writing efficiency. The lower the ratio, the better the underwriting efficiency. However, very low claims ratios may mean that policyholders are not benefiting enough from the premiums they pay.
Table 32: CLAIMS RATIO
Percentage (%)
2009
18
5
-
42
32
25
7
35
29
27
33
1
12
21
15
6
22
10
14
23
28
12
2010
17
7
9
5
14
27
8
26
21
21
37
8
18
11
14
8
19
17
29
21
24
12
2008
17
50
-
-
12
22
18
29
19
5
11
-
1
23
13
-
12
14
12
23
23
11
2007
16
6
-
-
12
17
-
27
21
6
18
-
-
29
15
-
21
8
1
24
19
-
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
PERFORMACE INDICATORS
NON-LIFE COMPANIES
Annual Report 2010 43
National Insurance Commission
The industry average ratio fell slightly from 18% in 2009 to 17% in 2010. The ratios of Enterprise, Ghana Union, Provident, Quality and Ghana Re were above the industry average for the four-year period under review. However, the claims ratio of Equity, NEM and Intercontinental Wapic from 2009 to 2010 are marginally below the industry average. This is mainly due to the fact that they are all fairly new companies.
22
15
14
13
20
10
17
16
17
13
15
10
18
22
16
12
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
44 Annual Report 2010
National Insurance Commission
Table 33: EXPENSE RATIO
Percentage (%)
2009
43
19
964
1096
66
24
48
19
17
41
74
41
58
15
21
103
56
33
59
53
50
44
47
36
57
32
2010
41
17
32
152
49
32
43
28
18
31
35
48
40
30
25
52
77
34
60
53
62
45
45
31
74
31
2008
34
12
-
-
51
21
13
18
15
22
128
-
169
18
22
-
30
28
42
57
23
125
40
25
45
28
2007
30
17
-
-
45
22
-
19
18
26
57
-
-
19
21
-
32
39
95
50
19
-
38
28
42
33
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
ExPENSE RATIO
The Expense ratio measures management expenses as a percentage of Gross Premiums. The lower the ratio, the better in terms of management efficiency.
The industry average dropped from 43% in 2009 to 41% in 2010. The ratios of SIC, Provident, Donewell and Prime for the four-year period under review are significantly above the industry average. However, the ratios of Enterprise, Ghana Union, Star, Metropolitan, Activa and Ghana Reinsurance were below the industry average. The ratio of Colina is significantly high because it is a new company. Again, Enterprise, NSIA, Unique and Quality consistently recorded significant increases in their expense ratios over the last three years.
Annual Report 2010 45
National Insurance Commission
Table 34: COMBINED RATIO
Percentage (%)
2009
61
24
964
0
98
49
54
55
46
68
107
42
71
37
36
109
79
44
73
76
77
56
69
51
71
45
2010
62
24
41
157
63
58
51
54
39
52
72
56
58
41
39
60
96
51
89
74
86
57
65
41
91
47
2008
51
62
-
-
63
43
31
47
34
27
139
-
170
41
35
-
42
42
54
80
46
135
58
39
60
38
2007
46
22
-
-
57
39
-
46
39
32
75
-
-
48
35
-
53
47
96
73
38
-
55
50
58
45
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
COMBINED RATIO
The ratio is calculated as Total Claims + Total Management Expenses divided by Gross Premium. It is combination of the claims and management ratios.
The industry average moved from 46% in 2007 to 62% in 2010 in line with the movement in the expense ratio. The ratios of SIC, Provident, Unique, Donewell, Prime and IGI for the four-year period under review are all above the industry average. However, the ratios of Enterprise and Ghana Union are well below the industry average for the four-year period under review.
46 Annual Report 2010
National Insurance Commission
Table 35: RETURN ON EQUITY RATIO
Percentage (%)
2009
10
20
4
1
-30
5
25
18
36
24
-56
-0.4
-21
12
29
-11
-25
38
-22
3
18
7
10
20
15
17
2010
4
11
-1
-17
-2
-2
20
13
9
5
-119
1
9
9
14
-7
-1
22
-13
12
-33
7
7
36
-32
22
2008
21
36
-
-
4
13
-58
38
41
31
-7
-
-24
14
34
-
26
25
2
3
39
-34
13
31
21
15
2007
18
-3
-
-
19
16
-
28
33
30
0
-
-
9
10
-
40
13
-19
6
29
-
13
16
21
26
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
RETURN ON EqUITy RATIO
Return on Equity is the Net Profit after tax as a percentage of Shareholders’ funds (Equity). It measures the profitability of the companies; the higher the percentage, the more profitable the company.
The industry average dipped from 21% in 2008 to 4% in 2010. Ten of the companies in 2010 recorded losses or negatives ROEs. This significantly reduced the industry average from 10% in 2009 to 4% in 2010. The ratio of IGI is out of range. However, Unique and Quality recorded significant losses in 2010.
Annual Report 2010 47
National Insurance Commission
Table 36: RETENTION RATIO
Percentage (%)
2009
72
19
100
100
92
54
83
92
46
93
85
88
90
71
39
99
66
65
67
78
69
93
72
74
73
56
2010
71
23
52
87
77
58
85
85
41
66
81
96
78
70
40
90
87
80
69
73
69
82
74
69
74
66
2008
62
9
-
-
76
44
77
91
38
70
73
-
22
71
49
-
64
56
78
77
79
85
74
55
75
44
2007
64
10
-
-
76
46
-
93
41
84
73
-
-
78
42
-
64
59
77
79
76
-
68
69
78
48
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
RETENTION RATIO
Retention ratio is a risk management ratio. This ratio measures the percentage of Net Premiums to Gross Premiums. It indicates the portion of the underwritten risks that have not been passed on to reinsurers.
The ratio declined slightly from 72% in 2009 to 71% in 2010. Enterprise, Ghana Union, Vanguard, Metropolitan and Activa for the four-year period under review have been doing a lot of reinsurance. However, a significant number of companies reinsured less than 20% of their underwritten risks in 2009 and 2010.
48 Annual Report 2010
National Insurance Commission
Table 37. INVESTMENT AS A PERCENTAGE OF TOTAL INVESTMENTS RATIO
Percentage (%)
2009
14
3
21
18
0
7
20
14
10
21
-
10
25
10
21
23
14
15
27
7
19
16
5
12
13
12
2010
12
5
16
18
23
3
14
13
7
6
1
10
33
15
14
13
12
11
13
5
24
15
3
9
9
10
2008
9
0
-
-
5
6
13
10
8
12
7
-
8
11
13
-
10
10
22
6
14
11
5
9
7
12
2007
10
-
-
-
6
10
-
9
9
10
2
-
-
14
6
-
9
7
31
5
14
-
4
5
7
27
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
INvESTMENT INCOME AS A PERCENTAgE Of TOTAL INvESTMENTS RATIO
Investment Income as a percentage of Total Investments measures the rate of return on investments. It gives an indication of the quality of the investments made and held by the various companies. The industry average fell from 14% in 2009 to 12% in 2010 due mainly to falling interest rates.
Annual Report 2010 49
National Insurance Commission
Table 38: RETENTION RATIO
Percentage (%)
2009
9
0.2
1495
3166
0.2
5
6
21
13
13
7
6
2
9
9
40
12
7
4
4
10
4
3
9
7
4
2010
9
1
8
70
7
4
4
22
13
8
1
6
1
6
6
7
14
5
2
3
6
3
3
7
4
4
2008
6
0
-
-
1
6
16
10
9
5
10
-
4
9
7
-
8
4
5
5
7
8
4
8
4
4
2007
6
-
-
-
4
3
-
9
19
5
1
-
-
11
3
-
8
4
19
5
7
-
3
5
4
11
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
INvESTMENT INCOME AS A PERCENTAgE Of gROSS PREMIUMS
Investment income as a percentage of Premiums tries to compare a company’s income from investment to its premium income. This ratio measures the extent of support from investment income. It indicates both the quality and adequacy of the investments. This is very relevant con-sidering the fact that, most companies make underwriting losses and have to depend on income from investments to make profit.
The industry average ratio remained the same during 2009 and 2010. However, the ratios of SIC, Enterprise, Provident, Unique, Donewell and Phoenix were lower than the industry average for the four-year period under review. The ratios of Colina are out of range.
50 Annual Report 2010
National Insurance Commission
Table 39. GROSS PREMIUM TO EQUITY RATIO
Percentage (%)
2009
1.9
6.5
0
0
2.0
1.2
2.1
0.8
1.6
2.6
0.8
1.1
1.6
1.1
2.7
0.3
2.4
2.0
2.1
0.9
2
1.4
0.9
2.5
1.7
3
2010
1.8
5.4
1.8
0.4
2.3
0.8
2.1
0.5
0.7
0.9
2.7
2.5
2.1
0.9
3
1.1
0.7
2.1
0.8
1.1
3.5
1.5
0.8
2.5
2.3
3.2
2008
1.8
4.3
-
-
2.5
1
0.9
0.8
2.2
4.3
0.5
-
0.3
1.3
2.2
-
1.9
2.9
1.3
0.7
2.4
0.4
0.9
2.2
2
3
2007
1.9
3.3
-
-
5
1.6
-
0.9
2.3
2.8
1
-
-
1.1
2.7
-
1.8
2.1
0.5
0.6
2.7
-
1
2
2.2
2.3
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
gROSS PREMIUM TO EqUITy RATIO
The Premium Equity ratios try to assess the capital adequacy of insurance companies. The ratios measure how much capital is available to support the premiums underwritten by a company.
The industry average dropped slightly from 1.9 in 2009 to 1.8 in 2010. The benchmark or industry best practice is however pegged at 2. This means that a ratio significantly above 2 indicates that the company may be overtrading whiles a ratio which is well below 2 means that the company is not utilising its capital. The ratios of five companies including the reinsurance companies for the four-year period under review were less than the pegged benchmark. However, the ratios of Activa, Metropolitan, Vanguard, Star and Quality for the four-year period under review are significantly higher than both the industry average and the benchmark.
Annual Report 2010 51
National Insurance Commission
Table 40. NET PREMIUM TO EQUITY RATIO
Percentage (%)
2009
1.2
1.2
0
0
1.8
0.7
1.8
0.7
0.8
3
0.7
1
1.5
0.8
1.1
0.3
1.6
1.3
1.4
0.7
1.4
1.3
0.7
1.9
1.2
1.7
2010
1.2
1.2
0.9
0.4
1.8
0.4
1.7
0.4
0.3
0.6
2.2
2.3
1.7
0.8
1.2
1
0.6
1.7
0.5
0.8
2.4
1.2
0.6
1.7
1.7
2.1
2008
1.0
0.4
-
-
1.9
0.4
0.7
0.8
0.8
2.4
0.4
-
0.2
0.9
1.1
-
1.2
1.6
1
0.5
1.9
0.3
0.7
1.2
1.5
1.3
2007
1.0
0.3
-
-
3.8
0.8
-
0.9
1.0
2.4
0.7
-
-
0.9
1.1
-
1.2
1.2
0.4
0.5
2.0
-
0.7
1.4
1.7
1.1
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
NET PREMIUM TO EqUITy RATIO
The Net Premium to Equity ratio does the same function as the gross premium to equity ratio. The only difference is that the Net Premium to Equity ratio measures the relation of the net premium and not the gross premium of a company to its capital. The industry average did not change during both 2009 and 2010.
52 Annual Report 2010
National Insurance Commission
Table 41. CAPITAL TO LIABILITIES RATIO
Percentage (%)
2009
1.1
0.2
38.9
1.7
0.4
1.3
0.8
1.1
0.5
0.4
0.6
1.2
0.9
0.9
0.9
6.8
0.5
0.7
0.8
1.6
0.6
1.6
1.1
0.4
0.8
0.6
2010
1.0
0.2
1.4
0.8
0.5
2.6
0.7
1.5
1.3
1.4
0.2
0.5
0.7
1.2
0.7
1.8
1.1
0.6
2
1.6
0.3
1.4
1.6
0.5
0.5
0.6
2008
1.0
0.4
-
-
1.9
0.4
0.7
0.8
0.8
3
0.4
-
0.2
0.9
0.9
-
1.2
1.6
1
0.5
1.9
0.3
0.7
1.2
1.5
1.3
2007
1.5
1.8
-
-
8.3
1.1
-
0.9
3.2
1.7
0.9
-
-
1
1.3
-
1.1
1.6
0.3
0.5
1.9
-
0.7
2.4
2.1
1.2
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
CAPITAL TO LIABILITIES RATIO
The Capital to Total Liabilities ratio compares the total liabilities of the company to its capital. A capital to liabilities ratio of 1.0 for an example means for every cedi of equity, the company has GH¢1.0 of liabilities.
Annual Report 2010 53
National Insurance Commission
Table 42. OUTSTANDING PREMIUMS AS A PERCENTAGE OF GROSS PREMIUMS RATIO
Percentage (%)
2009
43
23
59
-
59
17
31
77
31
50
80
58
45
75
19
33
29
66
47
23
41
36
59
33
61
30
2010
43
13
9
69
49
5
41
60
22
45
67
23
64
74
17
27
26
65
60
27
49
45
59
38
60
33
2008
43
27
-
-
54
23
53
74
23
54
64
-
43
70
23
-
32
47
57
14
30
48
57
32
58
24
2007
34
12
-
-
55
18
-
72
23
23
32
-
-
75
20
-
19
48
44
11
24
-
37
32
50
25
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
OUTSTANDINg PREMIUMS AS A PERCENTAgE Of gROSS PREMIUMS
Outstanding Premiums as a percentage of Gross Premiums compares outstanding premiums as at the end of the year to the total premiums written during the year. This efficiency ratio tries to assess how well management makes use of the company’s assets. Specifically, the objective is to find out how long it takes management to collect premium debts and put such funds into use.
The issue of Outstanding Premiums is adversely affecting the profitability and solvency of insurance companies. This makes the management of credit risk one of the major issues for Ghanaian insurance companies.
The industry average has peaked at 43% for the past three years. The ratios of eight companies improved during the four-year period under review. However, the ratios of Unique, Donewell, Phoenix, Prime, and the two reinsurance companies are all above the already too high industry average for the four-year period under review. It should be noted that the premium debtors used to calculate these ratios are already net of significant provisions for bad and doubtful debt.
54 Annual Report 2010
National Insurance Commission
Table 43. OUTSTANDING PREMIUMS AS A PERCENTAGE OF TOTAL ASSETS RATIO
Percentage (%)
2009
29
28
1
-
32
12
30
30
17
36
25
35
34
40
24
10
22
51
45
12
29
30
28
22
44
35
2010
27
13
9
12
35
3
35
19
8
23
34
20
54
37
21
20
9
51
30
17
40
38
28
28
47
37
2008
29
34
-
-
43
13
20
34
18
50
42
-
10
41
21
-
24
46
42
6
25
14
28
22
43
31
2007
25
14
-
-
30
14
-
34
19
24
51
-
-
42
24
-
16
38
14
4
22
-
21
19
35
26
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
OUTSTANDINg PREMIUMS AS A PERCENTAgE Of TOTAL ASSETS
This ratio measures the outstanding premiums as a percentage of the company’s total assets. It is an indication of asset quality. Since trade debtors are not regarded as good quality assets especially where they are quite old, the lower the ratio, the better.
The industry average dropped from 29% in 2009 to 27% in 2010. The ratios of Unique, Donewell, Phoenix and Mainstream Re for the four-year period under review were exceptionally higher than the industry average.
Annual Report 2010 55
National Insurance Commission
Table 44. RETURN ON ASSETS RATIO
Percentage (%)
2009
6
4
6
1
-8
4
12
11
14
11
-22
-0.2
-10
8
17
-10
-4
21
-10
3
9
4
6
7
10
9
2010
2
4
-3
-7
5
0
10
12
5
5
-22
0
4
7
9
-5
0
12
-8
14
-8
6
6
16
-10
11
2008
9
11
-
-
13
8
-25
-
11
7
-
-
-21
6
15
-
10
8
1
2
14
-26
7
9
8
6
2007
6
1
-
-
-1
7
-
-
7
11
0
-
-
5
4
-
23
13
-15
4
10
-
7
5
7
12
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
RETURN ON ASSETS
Return on asset is defined as the net profit before tax as a percentage of total assets. It is an efficiency ratio that measures how efficiently the company makes use of the assets under its control to generate return for the policyholders and shareholders.
Even though the industry average dipped from 6% in 2009 to 2% in 2010, the ratios of Ghana Union and Glico General were significantly on the high side for the four-year period under review. The ratios of IGI is out of range.
56 Annual Report 2010
National Insurance Commission
Table 45. INVESTMENT TO TOTAL ASSETS RATIO
Percentage (%)
2009
39
11
69
86
28
53
30
57
70
46
39
36
11
52
54
52
66
36
13
34
35
19
34
51
39
42
2010
40
14
51
66
22
69
25
52
70
69
39
54
3
19
57
38
41
39
9
45
20
17
39
57
32
44
2008
45
45
-
-
21
60
49
41
77
43
-
-
15
53
66
-
68
66
19
39
40
46
42
58
45
51
2007
52
47
-
-
17
72
-
59
74
57
53
-
-
48
57
-
74
52
25
42
48
-
54
58
45
56
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
INvESTMENT TO TOTAL ASSETS RATIO
This is an asset adequacy/quality ratio. It is intended to ascertain the percentage of the company’s total assets that are in the form of real investments that can be easily converted into cash to take care of policyholders and other liabilities.
The industry average rose slightly from 39% in 2009 to 40% in 2010. The ratios of Enterprise, Ghana Union, Star, NSIA and Metropolitan look quite good. However, the ratios of Prime, Donewell, International Energy, Activa, Mainstream, Quality and Regency Alliance for the year under review, on the other hand are too low. This worrying situation is due to the very high premium debtors, which rob the companies of investible funds..
Annual Report 2010 57
National Insurance Commission
Table 46. UNDERWITING PROFITS AS A PERCENTAGE OF GROSS PREMUIMS RATIO
Percentage (%)
2009
(6)
-1
-914
-1038
-16
-7
6
-9
2
0.3
-27
-8.2
-31
3
3
-72
-17
19
-14
-3
2
-1
4
2
1
3
2010
(2)
2
-12
-110
-0.3
-7
7
7
2
-1
-4
-7
0.2
6
0.4
-13
-14
10
-19
2
-15
4
8
12
-19
4.4
2008
2
3
-
-
-1
0
-4
-82
3
6
-41
-
-4
-97
7
-
10
6
4
-5
13
-133
14
9
11
1
2007
4
1
-
-
2
5
-58
-
6
12
-5
-
-10
-
2
-
5
8
9
-2
8
-
11
5
10
2
Company
Industry Average
Activa International Insurance Company Limited
Allianz Insurance Company Of Ghana Limited
Colina Ghana Insurance Company Limited
Donewell Insurance Company Limited
Enterprise Insurance Company Limited
Equity Assurance Limited
Ghana Reinsurance Company Limited
Ghana Union Assurance Company Limited
Glico General Insurance Company Limited
IGI Insurance Company (Ghana) Limited
Intercontinental Wapic Insurance Ghana Limited
International Energy Insurance Company Limited
Mainstream Reinsurance Company Limited
Metropolitan Insurance Company Limited
NEM Insurance (Ghana) Limited
NSIA Ghana Insurance Company Limited
Phoenix Insurance Company Limited
Prime Insurance Company Limited
Provident Insurance Company Limited
Quality Insurance Company Limited
Regency Alliance Insurance Limited
SIC Insurance Company Limited
Star Assurance Company Limited
Unique Insurance Company Limited
Vanguard Assurance Company Limited
UNDERwRITINg PROfITS AS A PERCENTAgE Of gROSS PREMIUMS
This ratio measures underwriting profits as a percentage of Gross Premiums. It generally tries to ascertain the portion of the gross premiums that is available to contribute towards profits. It is calculated by dividing the underwriting profit by the gross premiums. Underwriting profits for this purpose is defined as net earned premium minus commissions, claims and management expenses.
The industry average dropped gradually from positive 4 in 2007 to negative 2 in 2010. The ratio of Colina is out of range and therefore was excluded to avoid distortions. The falling trends of the ratios are the result of high management expenses and undercutting.
58 Annual Report 2010
National Insurance Commission
NON-LIfE INSURANCE INDUSTRy AggREgATED BALANCE SHEET
Table 47: NON-LIFE INSURANCE INDUSTRY AGGREGATED BALANCE SHEET AS AT 31 DEC., 2010
Stated Capital
Capital Surplus
Income Surplus
Contingency Reserve
Deposit for Shares
Shareholders’ Funds
REPRESENTED BY:
Fixed Assets
Investment Properties
Long Term Investments
Investments in Subsidiaries
Current Assets
Outstanding Premiums
Other Debtors/Loans
Amount due from reinsurers
Taxation
Short term investments
Cash funds/resources
Current Liabilities
Provision for unearned Premiums
Provision for claims
Amount due to reinsurers
Bank Overdraft
Creditors
Taxation
Proposed Dividend
Net Current Asset/Liabilities
Other Long Term Liabilities
Net Assets/Liabilities
2010
GH¢
113,124,715.00
92,898,998.00
28,343,825.00
74,667,445.00
3,534,118.00
312,569,101.00
62,058,203.00
28,939,641.00
121,510,247.00
13,528,308.00
226,036,399.00
125,599,555.00
33,069,558.00
28,486,043.00
1,808,326.00
136,603,303.00
30,395,437.00
355,962,222.00
98,367,477.00
41,323,372.00
57,834,073.00
614,617.00
38,190,955.00
19,028,987.00
1,050,812.00
256,410,293.00
99,551,929.00
13,019,227.00
13,019,227.00
312,569,101.00
2009
GH¢
71,277,303.00
59,367,382.00
22,398,161.56
67,847,181.00
-
220,890,027.56
54,976,363.32
17,125,138.00
54,161,677.00
14,022,203.00
140,285,381.32
129,879,487.34
22,377,559.87
20,294,922.00
1,075,511.00
126,020,633.62
31,014,416.19
330,662,530.02
91,260,478.92
37,696,329.94
61,755,362.00
939,641.00
34,878,942.92
13,064,660.00
4,498,613.00
244,094,027.78
86,568,502.24
5,963,856.00
5,963,856.00
220,890,027.56
Notes
1
2
3
Annual Report 2010 59
National Insurance Commission
Table 48: NOTES TO THE NON-LIFE INDUSTRY AGGREGATE BALANCE SHEET
Note 1 - Fixed Assets
Land & Buildings
Furniture, Fittings & Equipment
Motor Vehicles
Work in Progress
Intangibles
Computer Equipment
NOTE 2 - LONG TERM INVESTMENTS
Quoted Shares
Unquoted shares
Government Bonds
Others
Corporate Bonds
NOTE 3 - SHORT TERM INVETSMENTS
Treasury bills
Fixed Deposits
Call accounts
Unit trusts
Bonds
2009
GH¢
40,033,773.00
3,847,739.50
3,860,251.93
5,173,528.00
383,613.00
1,677,457.89
54,976,363.32
40,035,818.00
9,049,093.00
-
3,651,440.00
1,425,326.00
54,161,677.00
48,728,482.00
74,188,139.62
1,840,318.00
-
1,263,694.00
126,020,633.62
2010
GH¢
43,888,737.00
5,333,666.00
4,236,183.00
5,608,590.00
1,294,473.00
1,696,554.00
62,058,203.00
98,471,558.00
17,576,404.00
1,766,760.00
2,270,199.00
1,425,326.00
121,510,247.00
56,429,910.00
77,156,492.00
780,103.00
2,236,798.00
136,603,303.00
Table 49: MAKE UP OF ASSETS
Fixed Assets
Investment Properties
Long Term Investments
Investments in Subsidiaries
Outstanding Premiums
Other Debtors
Amount Due from reinsurers
Taxation
Short term investments
Cash funds/resources
2009
GH¢
54,976,363.32
17,125,138.00
54,161,677.00
14,022,203.00
129,879,487.34
22,377,559.87
20,294,922.00
1,075,511.00
126,020,633.62
31,014,416.19
470,947,911.34
2010
GH¢
62,058,203.00
28,939,641.00
121,510,247.00
13,528,308.00
125,599,555.00
33,069,558.00
28,486,043.00
1,808,326.00
136,603,303.00
30,395,437.00
581,998,621.00
%
11.7
3.6
11.5
3.0
27.6
4.8
4.3
0.2
26.8
6.6
100
%
10.7
5.0
20.9
2.3
21.6
5.7
4.9
0.3
23.5
5.2
100.0
60 Annual Report 2010
National Insurance Commission
1. Corporate Information
2. 2010 Financial Reports
3. List of Registered Insurance Companies
4. List of Registered Reinsurance Companies
5. List of Registered Broking Companies
APPENDICES
Annual Report 2010 61
National Insurance Commission
BOARD Of DIRECTORS: Mr. Frederick Quayenortey Chairman Mrs. Nyamikeh Kyiamah Commissioner of Insurance OTHER DIRECTORS Mr. Samuel Amankwah Mr. Justin Amenuvor Ms. Sarah Fafa Kpodo Dr. Albert Gemegah Mr. Emmanuel Baba Mahama SECRETARy: Mrs Emma Araba Ocran MANAgEMENT TEAM Mrs. Nyamikeh Kyiamah Commissioner of Insurance Mr. Simon N. K. Davor Ag. Deputy Commissioner of Insurance Mrs. Emma Araba Ocran Legal Director Mr. Michael Kofi Andoh Head, Supervision Mr. Joseph Bentor Head, Finance & Administration Mr. Isaac Buabeng Head, Marketing, Research & External Relations Mr. Martin Dornor Abayateye Internal Auditor AUDITORS: AADS Consult (Chartered Accountants) Republic House 5th Floor Accra BANKERS: SG-SSB Bank Limited Merchant Bank (Ghana) Limited Cal Bank Limited Ghana Commercial Bank HFC Bank (Ghana) Limited REgISTERED OffICE & PRINCIPAL PLACE Of BUSINESS Insurance Place No. 67 Independence Avenue P. O. Box CT 3456 Cantonments, Accra
CORPORATE INFORMATION
62 Annual Report 2010
National Insurance Commission
The Directors submit their report together with the audited financial statements of National Insurance Commission for the year ended 31st December, 2010.
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 Profit or Loss and Cash flow for that period. In preparing those 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 Ghana Accounting Standards.
The Directors are responsible for ensuring that the Commission keeps proper accounting records that disclose with 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 principal activity of the Commission is to regulate and supervise the activities of the Insurance Companies in Ghana.
fINANCIAL RESULTS (HIgHLIgHTS)
The Financial results of the Commission are as summarized below:
REPORT OF THE DIRECTORS
Excess of Income over Expenditure
Total Assets
Accumulated Fund
2010
(GH¢)
512,439
3,836,470
3,160,312
2009
(GH¢)
455,801
3,514,555
2,647,873
BY ORDER OF THE BOARD
………………………………………. DIRECTORS……………………………………….
Dated: April, 2011
Annual Report 2010 63
National Insurance Commission
INDEPENDENT AUDITORS REPORT TO MEMBERS OF NATIONAL INSURANCE COMMISSION
We have examined the Financial Statements of the National Insurance Commission for the year ended 31st December, 2010 as set out on pages 65 to 76 which have been prepared under the historical cost convention and on the basis of the accounting policies set out on pages 68 and 69
RESPECTIvE RESPONSIBILITIES Of DIRECTORS AND AUDITORS
The responsibility for the preparation of the Financial Statements of the Commission rest with the Directors. Our responsibility as auditors is to form an independent opinion based on the audit, on these Financial Statements and to report our opinion to you.
BASIS Of OPINION
We conducted our audit in accordance with International Standards on Auditing and Ghana Standards on Auditing. An audit includes examination, on test bases, of evidence relevant to the amounts and disclosures in Financial Statements. It also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the Financial Statements, and of whether the accounting policies are appropriate to the Commission’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Financial Statements are free from material misstatement, whether caused by fraud or other irregularity or error.
In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the Financial Statements.
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2010
64 Annual Report 2010
National Insurance Commission
OPINION
In our opinion, proper books of account have been kept by the Commission and the Financial Statements audited by us, which are in agreement therewith present in all material respect, a true and fair view of the financial position of the Commission as at 31st December, 2010 and of its result of operations and cash flows for the year then ended on the date, and comply with the Insurance Act, 2006 (Act 724) and Ghana National Auditing Standards.
Signature:………………………………………………………………………………………
Partner Signing: STEPHEN ARMAH
Membership number: (101073)
Name of Firm: AADS Consult (Chartered Accountants)
Date: 22nd July, 2011
Annual Report 2010 65
National Insurance Commission
The accounting policies and notes on pages 68 to 76 form an integral part of these financial statements.
INCOME
EXPENDITURE
Excess of Income over Expenditure
ACCUMULATED FUND
Balance as at 1 January
Excess of Income over Expenditure for year
Balance as at 31 December
2009
GH¢
3,973,151
(3,517,350)
455,801
2,192,072
455,801
2,647,873
2010
GH¢
4,596,585
(4,084,146)
512,439
2,647,873
512,439
3,160,312
Notes
1
2
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2010
66 Annual Report 2010
National Insurance Commission
BALANCE SHEET AS AT 31ST DECEMBER, 2010
Non-Current Assets
Property, Plant & Equipment
Equity Shares in GIC
Current Assets
Short Term Investments
Accounts Receivable
Bank and Cash Balances
Total Assets
Current Liabilities
Accounts Payable and Accruals
Accumulated Fund and Deferred Grant
Accumulated Fund
Deferred Grant
Deferred Rent (GIC)
Total Liabilities, Accumulated Fund & Grant
2009
GH¢
858,126
40,000
898,126
975,386
1,014,356
626,687
2,616,429
3,514,555
415,188
415,188
2,647,873
427,494
24,000
3,099,367
3,514,555
2010
GH¢
903,086
40,000
943,086
1,182,195
1,172,317
538,872
2,893,384
3,836,470
262,099
262,099
3,160,312
402,059
12,000
3,574,371
3,836,470
Notes
3
4
5
6
12
7
8b
9
The Financial Statements on pages 65 to 76 were approved by the Board of Directors on April, 2011 and were signed on its behalf by:
………………………………………. DIRECTORS……………………………………….
The accounting policies and notes on pages 68 to 76 form an integral part of these financial statements.
Annual Report 2010 67
National Insurance Commission
CASHFLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2010
Operating Activities
Cash Generated from Operations
Interest Received
Net Cash Generated from Operating Activities
Cash flow from Investing Activities
Purchase of Property, Plant and Equipment
Proceed from the Sale of Assets
Purchase of Investment
Investment Income Received
Net Cash used Investing Activities
Net increase/(decrease) in Cash and Cash
Equivalents
Movement in Cash and Cash Equivalents
At Start of the Year
Increase/(Decrease) in Cash and Cash
Equivalents
At end of the Year
2009
GH¢
267,296
6,968
274,264
(38,326)
34,675
(263,877)
236,252
(31,276)
242,988
383,699
242,988
626,687
2010
GH¢
147,611
12,024
159,635
(228,223)
6,000
(206,809)
181,581
(247,451)
(87,815)
626,687
(87,815)
538,872
Notes
10
1
3
11
5
1
The accounting policies and notes on pages 68 to 96 form an integral part of these Financial Statements.
68 Annual Report 2010
National Insurance Commission
BASIS Of ACCOUNTINg
The financial statements have been prepared under the historical cost convention and accrual basis and comply with Ghana Accounting Standards.
PROPERTy AND EqUIPMENT AND DEPRECIATION
All properties and equipments 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.
Furniture and Fittings 10%Motor Vehicles 20%Office Equipment 20% Office Building 3%Residential Accommodation 20%Computers 33.33%
Disposals of properties and equipments 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. Equipment less than GH¢ 500 are written off in the year of purchase.
CASH AND CASH EqUIvALENTS
For the purposes of the Cash flow Statement, cash and cash equivalents comprise cash on hand and short-term highly liquid investments.
INvESTMENTS
Investment securities are in the form of treasury bills, fixed deposits and non-negotiable certificates of deposits. Investments are quoted at cost.
ACCOUNTS RECEIvABLE
Accounts receivable are stated at a net of bad and doubtful debts and at cost.
ACCOUNTING POLICIES
Annual Report 2010 69
National Insurance Commission
TRANSACTIONS IN fOREIgN CURRENCIES
Transactions in foreign currencies during the year are converted into cedis at rates prevailing at the time of transaction. Monetary assets and liabilities denominated in foreign currencies 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.
STOCKS
Stocks are ordered just for the year and are charged to the Income and Expenditure Account in the year of purchase.
70 Annual Report 2010
National Insurance Commission
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2010
1. INCOME: gH¢ 4,596,585
This is made up as follows:
Other Income include of the following:
Levies on Insurers
Levies on Brokers
Licensing/Renewal Income
Investment Income
Interest on Current Account
Motor Contribution
Grant Income
Deferred Grant Income
Rent Income/Fees - IITC
Mega Risk Income
Other Income
2009
GH¢
2,354,249
119,694
49,090
236,252
6,969
600,804
87,645
25,435
153,824
204,691
134,498
3,973,151
2010
GH¢
2,757,873
148,011
56,777
181,581
12,024
759,880
87,546
25,435
139,188
308,581
119,689
4,596,585
Notes
8a
8b
Year Book Sales
Interest on Loans
Insurance Claims
Others
2009
GH¢
4,430
5,790
85
15,402
25,707
2010
GH¢
9,612
8,121
1,703
18,107
37,543
Annual Report 2010 71
National Insurance Commission
2. ExPENDITURE: gH¢ 4,084,146 Expenditure includes:
The average number of persons employed by the Commission during the year was 64 (2009:60)
Staff Cost
Auditors’ Remuneration
Directors’ Emoluments
Depreciation
Sticker Cost
Loss on sale of Assets
2009
GH¢
1,462,252
6,700
914,690
139,008
80,040
9,482
2010
GH¢
2,317,049
7,705
465,921
174,709
124,200
2,552
Notes
3
72 Annual Report 2010
National Insurance Commission
3.
PRO
PER
Ty, P
LAN
T A
ND
Eq
UIP
MEN
T
Cos
t
At
1st
Janu
ary
2010
(A
)
Add
ition
s
Dis
posa
ls
At
31st
Dec
embe
r 20
10
Dep
reci
atio
n
At
1st
Janu
ary
2010
Cha
rge
for
the
Year
Dis
posa
ls
Net
Boo
k Va
lue
At
31st
Dec
embe
r 20
10
At
31st
Dec
embe
r 20
09
Cos
t –F
ully
Dep
reci
ated
Ass
ets
(B)
DEP
REC
IAB
LE V
ALU
E (A
-B)
Dis
posa
l of
Prop
erty
& E
quip
men
t
Cos
t
Acc
umul
ated
Dep
reci
atio
n
Net
Boo
k Va
lue
Proc
eeds
on
Sale
s
Profi
t/(L
oss)
on
Dis
posa
l
GH
¢
823
,450
6
,787
-
830
,237
18
0,3
36
30
,437
-
2
10,7
73
619
,46
4
64
3,11
3 -
830
,237
- - - - -
GH
¢
180
,06
6
11,2
70
(15,4
10)
175,9
26
102,
266
17,0
80
(15,4
10)
103,
936
71,9
90
77,8
01
3,4
26
172,
50
0
15,4
10
(15,4
10) - - -
GH
¢
2
96
,817
14
7,18
9
(4
2,75
9)
4
01,2
47
23
8,4
22
72
,60
5
(3
4,2
07)
27
6,8
20
12
4,4
27
58,3
95 -
401
,24
7
4
2,75
9
(3
4,2
07)
8,5
52
6
,00
0)
(2
,552)
GH
¢
14
0,7
74
2
,830
(1
4,6
27)
1
28,9
77
1
03,
766
1
4,19
9
(1
4,6
27)
1
03,
338
2
5,6
39
3
7,0
07
38
8
128,5
89
1
4,6
27
(1
4,6
27) - - -
GH
¢
74
,210
29
,537
-
1
03,
747
58,4
15
22
,261
-
80
,676
23
,071
15
,797
13,3
29
90
,418
- - - - -
GH
¢
7
5,4
46
3
0,6
10
(1
5,4
25)
9
0,6
31
4
9,4
34
1
8,12
7
(1
5,4
25)
5
2,13
6
3
8,4
95
2
6,0
13
-
90
,631
1
5,4
25
(1
5,4
25) - - -
GH
¢
1,5
90
,76
3
22
8,2
23
(
88,2
21)
1,7
30,7
65
73
2,6
39
17
4,7
09
(
79,6
69
)
827
,679
9
03,
086
858,12
6
17
,143
1,713
,622
88,2
21
(
79,6
69
)
8,5
52
(
6,0
00
)
(
2,552)
Offi
ce
Bui
ldin
gFu
rnitu
re
and
Fitt
ings
Mot
or
Vehi
cles
Offi
ce
Equi
pmen
tC
ompu
ters
&
Acc
esso
ries
Resi
dent
ial
Furn
ishi
ngTo
tal
Annual Report 2010 73
National Insurance Commission
4. EqUITy SHARES IN gHANA INSURANCE COLLEgE
5. SHORT TERM INvESTMENTS: gH¢ 1,182,195
This is made up as follows:
Treasury Bills are debt securities issued by the Bank of Ghana for a term of three months, six months or a year and are classified as available for sale investments. Bills are carried at cost.
6. ACCOUNT RECEIvABLE AND PREPAyMENT: gH¢ 1,172,317 This is made up as follows:
Treasury Bills
Fixed Deposits
Non-negotiable Certificate of Deposit
Purchase of Investments (Additions during the year)
2009
GH¢
343,152
555,886
76,348
975,386
263,877
2010
GH¢
414,375
679,169
88,651
1,182,195
206,809
Equity Shares in GIC
2009
GH¢
40,000
2010
GH¢
40,000
Levies Due from Insurers and Brokers
Mega Risk Receivable
IITC Debtor
Staff Advances
Sundry Debtors
Accrued Investments Income
Withholding Tax Credit
Receivable from Provident Fund
Prepaid Insurance Expense
VAT
Penalties Recievables
Others
2009
GH¢
414,772
-
1,930
348,163
52,551
59,772
6,471
1,898
14,493
38,286
61,500
14,520
1,014,356
2010
GH¢
517,414
71,193
5,238
332,566
27,641
34,543
6,657
-
26,796
34,929
105,500
9,840
1,172,317
74 Annual Report 2010
National Insurance Commission
7. ACCOUNTS PAyABLE AND ACCRUALS: gH¢262,099
This is made up as follows:
9. DEfERRED RENT INCOME (gIC): gH¢ 12,000
8. a. gRANT INCOME : gH¢ 87,546
This is made up of EMCB/FINSSP Grant and Deferred Grant Income
Deferred Income represents grants from the Non-Banking Financial Institutions for the construction and furnishing of the Insurance Industry Training Centre (IITC) building, which is being written-off over its depreciable life.
b. DEfERRED gRANT INCOME: gH¢402,059
Accrued Expenses
Accrued Directors Remuneration
West African Insurance Institute
Provident Fund & Other Payable
Compensation Fund
Current portion of Long-term Loan
2009
GH¢
78,976
297,557
2,308
20,049
13,723
2,575
415,188
2010
GH¢
199,544
11,900
18,864
29,216
-
2,575
262,099
Notes
13
EMCB/FINSSP Grants represent grant received from Government of Ghana through the Ministry of Finance & Economic Planning
2009
GH¢
80,145
2010
GH¢
87,546
Balance at 1st January
Transfer to Income and Expenditure Account
Balance at 31st December
2009
GH¢
452,929
(25,435)
427,494
2010
GH¢
427,494
(25,435)
402,059
Balance at 1st January
Transfer to Income and Expenditure Account
Balance at 31 December
2009
GH¢
36,000
(12,000)
24,000
2010
GH¢
24,000
(12,000)
12,000
Annual Report 2010 75
National Insurance Commission
10. RECONCILIATION Of ExCESS Of INCOME OvER ExPENDITURE TO CASH fLOw fROM OPERATINg ACTIvITIES
11. gAIN / (LOSS) ON DISPOSAL Of fIxED ASSETS
This is made up as follows:
12. CASH AND CASH EqUIvALENT
Excess of Income over Expenditure
Amortisation of Capital Grant
Amortisation of Rent Income
Depreciation
(Gain)/Loss on Disposal of Property and
Equipment
Interest Income
Investment Income
Increase/Decrease in Accounts Receivable
and Prepayment
Increase / (decrease) in Accounts Payable
and Accruals
Cash Generated from Operating Activities
2009
GH¢
455,801
(25,435)
(12,000)
139,008
9,483
(6,969)
(236,252)
(394,079)
337,739
267,296
2010
GH¢
512,439
(25,435)
(12,000)
174,709
2,552
(12,024)
(181,581)
(157,960)
(153,089)
147,611
Notes
8b
9
3
3
Cost
Accumulated Depreciation
Net Book Value
Proceeds
Gain/(Loss) on Disposal
2009
GH¢
149,260
(105,102)
44,158
34,675
(9,483)
2010
GH¢
88,221
(79,669)
8,552
6,000
(2,552)
Cash
Bank
2009
GH¢
1,949
624,738
626,687
2010
GH¢
1,165
537,707
538,872
(784)
(87,031)
(87,815)
Changes during the year
76 Annual Report 2010
National Insurance Commission
13. ACCRUED ExPENSES: gH¢ 199,544 This is made up as follows:
14. UNUSED STICKERS
At the end of the year, the stock of unused stickers printed during the year was 6,297 booklets. Cost - GH¢40,931 (2009: 5,541 booklets - Cost - GH¢ 36,017).
15. CAPITAL COMMITMENTS
There were no Capital Commitments as at 31st December 2010 (2009 : Nil)
16. CONTINgENT LIABILITIES
There were no contingent liabilities at 31st December, 2010 (2009: Nil)
Audit Fees
Medical Expenses
Telephone
Water and Electricity
Withholding Tax Payable
T & T, Repairs and Others
PAYE and SSF
2009
GH¢
6,700
2,499
2,543
12,735
8,198
27,653
18,648
78,976
2010
GH¢
7,705
2,407
5,637
26,481
4,259
60,311
92,744
199,544
Annual Report 2010 77
National Insurance Commission
LIS
T O
F R
EG
IST
ER
ED
IN
SUR
NA
CE
CO
MPA
NIE
S N
ON
-LIF
E I
NSU
RA
NC
E C
OM
PAN
IES
Com
pany
Loca
tion
NSIA
Gha
na
Insu
ranc
e C
om
pany
Lim
ited
Done
wel
l Ins
uranc
e C
om
pany
Lim
ited
Ent
erpr
ise
Insu
ranc
e C
om
pany
Lim
ited
Equ
ity
Ass
uranc
e C
om
pany
Lim
ited
Gha
na U
nion
Ass
uranc
e C
om
pany
Lim
ited
Sobo
que
Road,
Asy
lum
Dow
n, a
djace
nt t
o H
oly
Spi
rit
Cat
hedr
al
F 3
3/1
, Carl Q
uist
Str
eet,
Kuk
u H
ill, O
su R
E
Ent
erpr
ise
Hous
e, 1
1 H
igh
Str
eet
48 S
ench
i Str
eet,
Off
Avi
atio
n Road,
Airpo
rt ,
Acc
ra.
F828/1
Rin
g Road
Eas
t, O
su
Cont
act
Det
ails
P. O
. Box
311
4, A
ccra
Tel:
24
950
0, 2
49
501-
3
Fax:
24
950
4
e-m
ail: in
fo@
cdhi
nsur
anc
e.co
m
P. O
. Box
GP 2
136
, Acc
ra
Tel:
76
30
65, 7
6311
8, 7
6317
1, 7
011
56
0-1
, 772778
Fax:
76
04
84
e-m
ail: d
one
wel
linsu
ranc
e.co
m
P. O
. Box
GP 5
0, A
ccra
Tel:
66
6856
-8/6
66
84
7-9
Fax:
66
618
6/6
70
30
6
e-m
ail: e
icltd
@af
rica
onl
ine.
com
.gh
C/o
PM
B L
16, L
egon,
Acc
ra
Tel:
770
54
8
Fax:
76
9592
e-m
ail: in
fo@
equi
tyas
sura
ncel
td.c
om
P. O
. Box
1322, A
ccra
Tel:
780
625/6
, 780
628/9
Fax:
780
64
7
e-m
ail: g
ua@
ghana
unio
nass
uranc
ecom
pany
.com
78 Annual Report 2010
National Insurance Commission
Glic
o G
ener
al I
nsur
anc
e C
om
pany
Lim
ited
Act
iva In
tern
atio
nal I
nsur
anc
e C
om
pany
Lim
ited
Indu
strial &
Gen
eral I
nsur
anc
e G
hana
Lim
ited
Inte
rcont
inen
tal W
api
c In
sura
nce
Com
pany
Lim
ited
Inte
rnat
iona
l Ene
rgy
Insu
ranc
e C
om
pany
Lim
ited
Met
ropo
litan
Insu
ranc
e C
om
pany
Lim
ited
Nem
Insu
ranc
e G
hana
Lim
ited
Glic
o H
ous
e N
o. 4
7, K
wam
e N
krum
ah
Ave
nue.
3rd
Flo
or,
Her
itage
Tow
ers,
6th
Ave
nue,
Wes
t Rid
ge.
Blo
ck 1
, Des
ign
Res
our
ce E
stat
e, 4
th C
ircu
lar,
Cant
onm
ents
, Acc
ra
35 A
viat
ion
Road,
Airpo
rt R
esid
ential A
rea
11
Saflo S
tree
t, A
bele
mkp
e, A
ccra
Cale
doni
an
Hous
e, K
ojo
Tho
mps
on
Road
40
C 5
87/1
3 O
luse
gun
Oba
sanj
o H
ighw
ay
Acc
ra G
irls
Are
a
P. O
. Box
4251, A
ccra
Tel:
670
335, 6
89
517
Fax:
7011
575
PM
B K
A 8
5 A
irpo
rt, A
ccra
Tel:
686
352/7
6214
5
Fax:
68517
6
e-m
ail: g
h.act
iva@
group
-act
iva.c
om
P. O
. Box
GP 1
38, A
ccra
Tel:
254
487/9
239
49
4
Fax:
e-m
ail: in
fo@
igig
hana
.com
PM
B 1
63 K
IA A
irpo
rt
Tel:
030
2 7
726
06
, 773616
, 7736
09
Fax:
030
2 7
7374
9
PM
B 2
3, A
ccra
Tel:
770
338/7
68335
Fax:
e-m
ail: in
fo@
igig
hana
.com
P. O
. Box
20
084
, Acc
ra
Tel:
220
96
6/2
274
39
/22529
6
Fax:
237872/3
e-m
ail: m
et@
africa
onl
ine.
com
.gh
P. O
. Box
CT 2
728, A
ccra
Tel.
220
797 /
220
79
8
Fax
: 230
084
e-m
ail: n
em@
nem
ghana
.com
Annual Report 2010 79
National Insurance Commission
Pho
enix
Insu
ranc
e C
om
pany
Lim
ited
Pro
vide
nt In
sura
nce
Com
pany
Lim
ited
Prim
e In
sura
nce
Com
pany
Lim
ited
Qua
lity
Insu
ranc
e C
om
pany
Lim
ited
Reg
ency
Allianc
e In
sura
nce
Gha
na L
imited
SIC
Insu
ranc
e C
om
pany
Lim
ited
Sta
r A
ssur
anc
e C
om
pany
Lim
ited
224
/3, 6
th R
ingw
ay L
ink
Est
ates
, Acc
ra. P
hoen
ix
Hous
e, K
and
a H
ighw
ay
Pro
vide
nt T
ower
s, R
ing
Road
Cen
tral
Gam
el A
bdul
Nas
ser
St.,
Rin
g Road
Est
ates
, Osu
,
Acc
ra.
Qua
lity
Hous
e, R
ing
Road
Cen
tral K
oko
mle
mle
65 P
atrice
Lum
umba
Road,
Airpo
rt R
esid
ential
Are
a, A
ccra
Nye
met
ei H
ous
e, R
ing
Road
Eas
t (H
ead
Offi
ce)
No.
C551/
4, C
ola
Str
eet
Koko
mle
mle
, (Adj
. ATT
C)
P. O
. Box
17753, A
ccra
-Nort
h
Tel:
911
023-4
, 24
6319
, 24
5921
Fax:
2220
08
e-m
ail: in
fo@
phoen
ixgh
ana
.com
P. O
. Box
782, A
ccra
Tel:
2210
96
/229
80
7/2
339
64
Fax:
2339
64
P. O
. Box
AN
76
44
Acc
ra-N
ort
h
Tel:
2350
39
, 224
558, 0
24
43713
27
P. O
. Box
MP 1
252, M
am
probi
, Acc
ra
Tel:
25812
5, 2
5812
7, 2
5812
9, 2
5813
0-4
,
25813
7, 2
5813
9
Fax
22016
5, 2
5813
5-6
e-m
ail: h
eado
ffice
@qi
cgha
na.c
om
Tel:
77810
6, 7
82871
Fax:
e-m
ail: r
egen
cyallianc
egha
na.c
om
P. O
. Box
236
3, A
ccra
Tel:
780
601-
15
Fax:
780
615
e-m
ail: s
icin
fo@
ighm
ail.co
m
P. O
. Box
7532, A
ccra
-Nort
h
Tel:2
42233/2
40
632
Fax:
23715
6
e-m
ail: s
ac@
africa
onl
ine.
com
.gh
80 Annual Report 2010
National Insurance Commission
Uni
que
Insu
ranc
e C
om
pany
Lim
ited
Vang
uard
Ass
uranc
e C
om
pany
Lim
ited
Colin
a In
sura
nce
Com
pany
Lim
ited
Allianz
Insu
ranc
e C
om
pany
Lim
ited
Qua
lity
Hous
e, R
ing
Road
Cen
tral K
oko
mle
mle
Inde
pend
ence
Ave
nue
near
CA
L B
ank
Nea
r G
CB. L
A B
each
Road,
Osu
Adw
oa A
giew
aa B
uild
ing,
Osu
P. O
. Box
AN
5721, A
ccra
-Nort
h
24
817
4-7
Fax:
2214
30
e-m
ail: u
niq.
ins@
africa
onl
ine.
com
.gh
P. O
. Box
186
8, A
ccra
Tel:
66
64
85-7
/66
90
96
/7010
680
-2
7
8014
6 /
7010
677/9
Fax:
66
8610
e-m
ail: v
ang
uard
@gh
ana
.com
P. O
. Box
1292, A
ccra
Tel:
76
026
0, 7
74771, 7
60
639
, 76
056
8
Fax:
76
056
8
e-m
ail: v
ang
uard
@gh
ana
.com
P. O
. Box
Tel:
024
45774
69
Annual Report 2010 81
National Insurance Commission
LIF
E I
NSU
RA
NC
E C
OM
PAN
IES
Com
pany
Loca
tion
Cont
act
Det
ails
Hous
e N
o. 8
65A
/3, T
ack
ie T
awia
h Ave
., Kand
a
Hig
hway
, Nort
h Rid
ge
91
Sax
el A
venu
e, O
pposi
te T
esano
Polic
e Sta
tion,
Tesa
no.
2nd
Flo
or,
Carl Q
uist
Str
eet,
kuku
Hill,
Osu
-RE
Ent
erpr
ise
Hous
e, 1
1 H
igh
Str
eet,
Acc
ra
Nkr
umah
Tow
ers
Nea
r Sadi
sco T
raffi
c Li
ght
Koko
mle
mle
,
F828/1
Rin
g Road
Eas
t, O
su
Capi
tal E
xpre
ss A
ssur
anc
e (G
h) L
imited
Gold
en L
ife In
sura
nce
Com
pany
Lim
ited
Done
wel
l Life
Insu
ranc
e C
om
pany
Lim
ited
Ent
erpr
ise
Life
Ass
uranc
e C
om
pany
Lim
ited
Exp
ress
Life
Insu
ranc
e C
om
pany
Lim
ited
Gha
na U
nion
Ass
uranc
e C
om
pany
Lim
ited
P. O
. Box
50
80
, Acc
ra
Tel:
24
04
09
, 24
79
42
Fax:
P. O
. Box
311
4, A
ccra
Tel:
24
90
61, 2
45737, 2
284
20
Fax:
250
34
3
P. O
. Box
GP 2
136
, Acc
ra
Tel:
76
3321, 7
6326
6
Fax:
76
314
7
e-m
ail: d
one
wel
linsu
ranc
e.co
m
Priva
te M
ail
Bag,
Gen
eral P
ost
Offi
ce
Acc
ra, G
hana
Tel:
6770
74,6
770
78
Fax:
6770
73
e-m
ail: e
lac@
eicg
hana
.com
P. O
. Box
AN
10
476
Acc
ra-N
ort
h
Tel.
030
2-2
524
87, 0
28-9
55558
Fax:
250
317
e-m
ail: in
fo@
expr
essl
ifegh
.com
P. O
. Box
1322, A
ccra
Tel:
780
625/6
, 780
628/9
Fax:
780
64
7
e-m
ail: g
ua@
ghana
unio
nass
uranc
ecom
pany
.com
82 Annual Report 2010
National Insurance Commission
Glic
o L
ife In
sura
nce
com
pany
Lim
ited
Gha
na L
ife In
sura
nce
Com
pany
IGI L
ife A
ssur
anc
e G
hana
Lim
ited
Met
Life
Insu
ranc
e G
hana
Lim
ited
Pho
enix
Life
In
sura
nce
Com
pany
Lim
ited
Pro
vide
nt L
ife A
ssur
anc
e C
om
pany
Lim
ited
Qua
lity
Life
nsu
ranc
e C
om
pany
Lim
ited
Glic
o H
ous
e, N
o. 4
7 K
wam
e N
krum
ah
Ave
nue.
17 A
viat
ion
Road
Airpo
rt
Blo
ck
2, D
esig
n Res
our
ce E
stat
e, 4
th C
ircu
lar,
Cant
onm
ents
, Acc
ra
4th
Flo
or
Rid
ge T
ower
s, S
udan
Road
224
/3, 6
th R
ingw
ay L
ink
Est
ates
, Acc
ra
Pro
vide
nt T
ower
s, R
ing
Road
Cen
tral
Pet
ers
Hous
e, O
ff K
wam
e N
krum
ah
Ave
. Ada
braka
P. O
. Box
4251, A
ccra
Tel:
670
335, 6
89
516
-7
Fax:
7011
575
P. O
. Box
816
8, A
ccra
Tel:
7811
18, 7
80
54
3,7
712
98
Fax:
76
90
96
e-m
ail: g
hana
lifei
nsur
anc
e.co
m
P. O
. Box
GP 1
38, A
ccra
Tel:
254
487/9
239
49
4
Fax:
e-m
ail: in
fo@
igig
hana
.com
P. O
. Box
CT 4
56
, Cant
onm
ents
, Acc
ra
Tel 6
854
60
, 6854
76
,
Fax:
6854
66
, 6854
40
P. O
. Box
17753, A
ccra
-Nort
h
Tel:
911
023/4
, 24
6319
, 24
5921
Fax:
24
6311
e-m
ail: p
hoen
ixgh
ana
.com
P. O
. Box
782, A
ccra
Tel:
2210
96
/229
80
7/2
339
64
Fax:
2339
64
P. O
. Box
MP 1
252, M
am
probi
, Acc
ra
Tel:
234
017
Fax:
22016
5
Em
ail: q
ic@
africa
nus.ne
t
Annual Report 2010 83
National Insurance Commission
SIC
Life
Insu
ranc
e C
om
pany
Lim
ited
Sta
rlife
Insu
ranc
e C
om
pany
Lim
ited
Uni
que
Life
Ass
uranc
e C
om
pany
Lim
ited
Vang
uard
Life
Ass
uranc
e C
om
pany
Lim
ited
Isla
nd P
rope
rty
No.
33-3
4,
Kw
am
e N
krum
ah
Ave
nue.
Cre
scen
t A
sylu
m D
own
Kin
gsm
an
Bui
ldin
g 1s
t floor
Plo
t N
o 7
8A
Gra
phic
Road
No.
21
Inde
pend
ence
Ave
nue
Inde
pend
ence
Ave
nue
near
CA
L B
ank
P. O
. Box
CT 3
24
2, C
ant
onm
ents
, Acc
ra
Tel:
66
2286
, 66
4756
, 66
66
82, 6
634
31
Fax:
6710
72, 6
7812
5
e-m
ail: in
fo@
sicl
ife-g
h.co
m
P. O
. Box
AN
7532, A
ccra
-Nort
h
Tel:
2589
43-6
Fax:
2589
47
PM
B 1
14 C
entr
al P
ost
Offi
ce
Tel.
030
2-6
850
79
-82, 0
289
520
737
Fax:
24
817
3
e-m
ail: u
niq.
ins@
africa
onl
ine.
com
.gh
PM
B C
T 3
455 C
ant
onm
ents
Tel.
25324
2, 2
354
34
-5 2
354
37
Fax:
2354
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e-m
ai :
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@va
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rdlif
e.co
m
84 Annual Report 2010
National Insurance Commission
LIS
T O
F R
EG
IST
ER
ED
RE
INSU
RA
NC
E C
OM
PAN
IES
Com
pany
Loca
tion
Cont
act
Det
ails
Gha
na R
eins
uranc
e C
om
pany
Main
stre
am
Rei
nsur
anc
e
No.
4 A
wud
om
e In
dust
rial E
stat
e
3rd
Kuk
u C
resc
ent,
Osu
P. O
. Box
750
9, A
ccra
-Nort
h.
Tel:
220
66
0/2
20
697/2
330
43/4
Fax:
2219
58
P. O
. Box
CT.39
59
, Acc
ra
Tel.
030
2-7
88326
,7011
886
,024
4-3
35711
Fax
788325
Em
ail: in
fo@
main
stre
am
.gh.
com
Annual Report 2010 85
National Insurance Commission
LIS
T O
F R
EG
IST
ER
ED
IN
SUR
AN
CE
BR
OK
ING
CO
MPA
NIE
SC
om
pany
Loca
tion
Cont
act
Det
ails
AG
Ass
oci
ates
Ako
to R
isk
Mana
gem
ent
Lim
ited
All
Ris
ks C
ons
ulta
ncy
Lim
ited
Allied
Insu
ranc
e B
roke
rs L
imited
Alp
ha In
sura
nce
Bro
kers
Lim
ited
Ape
x In
sura
nce
Bro
kers
Lim
ited
Ark
Insu
ranc
e B
roke
rs C
om
pany
Hous
e N
o. F
386
/1 K
uku
Hill C
rese
nt, O
su
90
Kw
am
e N
krum
ah
Ave
nue
F39
3/4
Ots
we
Str
eet,
Ako
Adj
ei P
ark
, Osu
Acc
ra-N
ewto
wn
Ann
ex ‘B
’, Room
10
9, F
irst
Flo
or,
Rep
ublic
Hous
e Acc
ra
Hous
e N
o. 6
8, O
wus
u Kofi
Str
eet,
Dark
uman,
Acc
ra.
WPZ B
uild
ing,
15 K
wam
e N
krum
ah
Ave
nue
P. O
. Box
SK
26
Saku
mono
, Com
m. 1
3
Tel:
024
47312
09
P. O
. Box
953, A
ccra
Tel:
237573, 0
27-5
456
54
Fax:
24
654
3
e-m
ail: a
korisk
@gh
ana
.com
P. O
. Box
115
85, A
ccra
-Nort
h
Tel:
030
2 7
89
90
9,
Fax:
030
2 7
89
912
e-m
ail: in
fo@
allr
isks
cons
ulta
ncy.co
m
ww
w.a
llris
ksco
nsul
tanc
y.co
m
P. O
. Box
K. 6
49
, Acc
ra N
ewto
wn
– Acc
ra
Tel:
2334
59
, 23724
8
P. O
. Box
CT 6
04
6, C
ant
onm
ents
, Acc
ra
Tel:
6615
72, 6
811
56
P. O
. Box
KN
30
68, K
ane
shie
-Acc
ra
Tel:
020
8226
823
Fax:
66
06
50
P. O
. Box
16
09
, Mam
probi
-Acc
ra
Tel./
Fax:
66
26
57
86 Annual Report 2010
National Insurance Commission
Ast
erix
B
roke
rs L
imited
Cer
is In
tern
atio
nal L
imited
Cla
im L
imited
Cro
wn
Insu
ranc
e B
roke
rs
Dann
iads
Lim
ited
Doub
le D
& M
Lim
ited
Dyn
am
ic In
sura
nce
Bro
kers
Edw
ard
Men
sah,
Wood
& A
ssoci
ates
Firs
t A
ncho
r Ris
k M
ana
gem
ent
No.
117
, Lago
s Ave
nue,
Eas
t Le
gon
Hse
. No.
657/4
2nd
Flo
or
(opp
osi
te C
ity
Pain
ts)
Kojo
Tho
mps
on
Road,
Acc
ra
Trade
Fair C
entr
e (P
avili
on
‘V’) L
a, A
ccra
2nd
Flo
or
(R. 2
E)
Trus
t To
wer
s, O
ff F
arr
ar
Ave
nue,
Ada
rbra
ka
Hous
e N
o. D
325/4
, Bre
wer
y Road
Offi
cial T
own,
Ada
braka
No.
1 K
was
hiem
an
Road,
Mat
ahe
ko, A
ccra
Hse
. No.
4 A
wik
ona
a S
t. N
ungu
a, A
ccra
Beh
ind
the
popu
lar
Agg
ie C
old
Sto
re
Mary
dee
Hous
e C
124
/3 F
arr
ar
Ave
nue
No.
8 O
lym
pic
Str
eet
Koko
mle
mle
, Acc
ra
P. O
. Box
AD
50
, Ada
braka
-Acc
ra
Tel :
028 9
5236
83
E-m
ail
: ast
erix
@as
terixg
hana
.com
P. O
. Box
CT 3
54
7 C
ant
onm
ents
-Acc
ra
Tel:
(021)
680
925, 6
713
30
, 024
4319
86
2,
020
84
04
26
4
Fax:
680
926
P. O
. Box
CT. 1
731, C
ant
onm
ents
,
Tel:
778829
Fax:
76
0830
P. O
. Box
15282 A
ccra
-Nort
h
Tel:
24
9288/2
49289
Fax:
250
915
P. O
. Box
71, T
rade
Fair C
entr
e,
Acc
ra
Tel:
2279
08
Fax:
233380
P. O
. Box
117
, Mam
probi
-Acc
ra
Tel:
226
936
, 024
-2511
67
P. O
. Box
2577, T
ema, G
hana
Tel:
713
90
0, 7
1389
9
Fax:
713
882
P. O
. Box
16
882, A
ccra
-Nort
h
Tel:
229
34
9/2
24
670
/2330
78
Fax:
224
80
9
P. O
. Box
AN
50
42 A
ccra
-Nort
h
Tel:
413
892/0
24
4-9
420
6
Annual Report 2010 87
National Insurance Commission
Gha
na In
tern
atio
nal I
nsur
anc
e B
roke
rs
Glo
bal I
mpa
ct In
sura
nce
Bro
kers
(G
h) L
td.
Gra
s Sav
oye
Gha
na L
imited
Horizo
n In
sura
nce
Bro
kers
Lim
ited
Insu
ranc
e C
entr
e of
Exc
elle
nce
Insu
ranc
e C
ons
ulta
ncie
s In
tern
atio
nal L
imited
Inte
r-Afr
ica B
roke
rs L
imited
Inte
rnat
iona
l Cons
ort
ium
Bro
kers
Lim
ited
JeRock
Insu
ranc
e B
roke
rs
Last
Flo
or,
Mart
o H
ous
e, O
ff
Kojo
Tho
mps
on
Road,
Ada
braka
, Acc
ra
Opp
osi
te B
urki
na F
aso E
mba
ssy, A
sylu
m D
own
15th
Flo
or,
Her
itage
Tow
er, A
mba
ssado
rial E
ncla
ve,
Rid
ge, A
ccra
.
Krist
al P
laza
Com
m. 4
Te
ma, N
ear
Ever
gree
n
Sup
erm
ark
et
Loca
tion:
H/N
o 1
4 R
idge
Road,
NT R
idge
(O
pposi
te A
ccra
Hig
h Sch
ool)
Ben
efits
Pla
za, R
ing
Road
Cen
tral
Firs
t floor,
Palm
a H
ous
e, T
udu,
beh
ind
Cat
holic
Book
Cen
tre
3rd
Flo
or
Sw
anm
ill, A
ccra
20
9 G
eors
Hous
e, N
saw
am
Road,
Ach
imot
a.
P. O
. Box
CT 2
86
8, C
ant
onm
ents
, Acc
ra
Tel:
250
384
Fax:
670
518
P. O
. Box
713
0, A
ccra
-Nort
h
Tel.
2210
21
Fax:
2218
69
P. O
. Box
GP 2
42, A
ccra
Te: 0
24
4316
00
8
P. O
. Box
CS 8
40
9 C
om
m. 7
Tem
a
Tel:
024
4-3
724
63, 0
20
-820
70
62
P. O
. Box
30
688, K
IA-A
ccra
Gha
na
Tel:
239
855
Fax:
234
128
E-m
ail
ice@
4U.c
om
.gh
P. O
. Box
46
48
Tel:
2311
82-3
, 667339
/22979
6/6
6217
4
Fax:
2311
84
/66
819
9
P. O
. Box
T.89
Sta
dium
Post
Offi
ce, A
ccra
Tel:
027-7
734
385
P. O
. Box
OS 2
774
, Osu
, Acc
ra
Tel:
024
4576
06
4,0
24
484
3018
5, 0
20
813
99
94
P. O
. Box
TA
46
9, T
aifa
, Acc
ra
Tel:
020
-2018
138, 0
24
-328870
3
88 Annual Report 2010
National Insurance Commission
KEK
Insu
ranc
e B
roke
rs L
imited
Lord
ship
Insu
ranc
e B
roke
rs
Marine
& G
ener
al B
roke
rs L
imited
Max
pal I
nter
med
iaries
MID
AS In
sura
nce
Bro
kers
Lim
ited
Asc
om
a G
hana
Mana
gem
ent
Lim
ited
Pro
gres
sive
Insu
ranc
e B
roke
rs L
imited
Pru
dent
Cons
ult
Lim
ited
Bro
king
Hous
e N
o.4
0/4
1, S
ench
i St.,
Avi
atio
n Road,
Airpo
rt R
esid
ential A
rea, A
ccra
C14
0 M
otorw
ay E
xten
sion
Abe
lem
kpe
5th
Flo
or
Pla
za 1
23 K
wam
e N
krum
ah
Ave
nue
Ada
braka
26
Farr
ar
Ave
nue,
Ada
braka
Plo
t N
o. A
10, A
wud
om
e Roun
dabo
ut,
kane
shie
Sili
con
Hous
e, N
o. 4
Nort
h Rid
ge C
resc
ent
Bank
u Ju
nction,
Eas
t Le
gon,
Acc
ra
Hse
. No.
520
/4, J
one
s N
elso
n Str
eet,
Ada
braka
,
Acc
ra
P. O
. Box
66
81, A
ccra
-Nort
h
Tel:
76
40
23, 7
64
573, 7
64
573, 7
64
39
0, 7
64
210
Fax:
76
413
8
e-m
ail:ke
k_in
sura
nce@
ighm
ail.co
m
P. O
. Box
AH
84
4 A
chim
ota
Tel:
7814
35/7
817
74
Fax:
770
432
P. O
. Box
GP 2
913
Acc
ra
Tel:
030
2 2
54
64
7
Fa
x 254
64
9
Info
@m
gins
uranc
ebro
kers
.com
P. O
. Box
T.7
9, S
tadi
um P
ost
Offi
ce A
ccra
Tel:
23279
5
Fax:
24
056
9
P. O
. Box
AN
10
554
Acc
ra-N
ort
h
Tel:
25516
8
Fax:
2586
67
E-m
ail: m
idas
insu
ranc
e@tn
.com
.gh
P. O
. Box
20
6, T
rade
fair,
Acc
ra
Tel :
23724
2, 9
11785, 0
24
36
90
36
3
Fax
: 30
4977
E-m
ail
: new
land
@k5
onl
ine.
com
P. O
. Box
GP 1
44
38 A
ccra
Cen
tral
Tel:
2370
58, 0
20
-2018
102
P. O
. Box
AN
811
8 A
ccra
-Nort
h
Tel:
020
-815
716
0,0
24
4-7
670
37, 0
24
4-8
839
91
Annual Report 2010 89
National Insurance Commission
Saf
ety
Insu
ranc
e B
roke
rs L
td.
Sav
iour
Insu
ranc
e B
roke
rs &
Cons
ulta
nts
Trans
-Nat
iona
l Bro
kers
Lim
ited
Tri-Sta
r In
sura
nce
Ser
vice
s Li
mited
Uni
vers
al I
nsur
anc
e C
ons
ulta
nts
Ltd.
Shi
eld
Insu
ranc
e B
roke
rs L
imited
Pre
mie
r B
roke
rs &
Cons
ulta
nts
Ris
cove
ry L
imited
2nd
Flo
or,
Blu
e C
hip
Bui
ldin
g
Kand
a, E
ast
Aya
was
o, A
ccra
45 D
ade
ban
Road,
Nort
h Kane
shie
Indu
strial A
rea
213
/4, O
lym
pic
Road,
Koko
mle
mle
, Acc
ra
1st
Flo
or,
Sta
ndard
Cha
rter
ed B
ank
Bui
ldin
g
Ada
braka
Hs. N
o. 5
, Ash
ely
Bot
we
Marb
le H
ous
e, S
out
h in
dust
rial A
rea, A
ccra
P. O
. Box
OS 2
912
Osu
, Acc
ra
Tel.
7619
44
, 786
60
3, 0
24
376
96
5
Fax:
786
60
2
E-m
ail: ja
duko
fi@af
rica
onl
ine.
com
.gh
P. O
. Box
46
8, A
ccra
Tel:
224
559
P. O
. Box
1784
1, A
ccra
Tel/
Fax:
230
861, 0
24
42720
60
P. O
. Box
1256
6, A
ccra
-Nort
h
Tel:
(233-2
1)24
4861, 2
5618
3, 2
20
30
2
Fax:
(233)2
20
319
P. O
. Box
CT 1
17, C
ant
onm
ents
, Acc
ra.
Tel:
2220
76
/229
36
2
Fax:
2339
44
e-m
ail:un
icbr
ok@
ghana
.com
P. O
. Box
GP 1
319
7, A
ccra
.
Tel:
519
651-
2, 0
24
37616
32
Fax:
-
e-m
ail:Ste
phen
@de
ebabs
.com
P. O
. Box
DS 1
632 D
ans
om
an,
Acc
ra.
Tel:
915
11, 9
18011
, 028 9
54
0270
Fax:
224
80
4
e-m
ail:pr
emiu
mbr
oke
r@gm
ail.co
m
P. O
. Box
GP 1
359
6, A
ccra
Tel.
Em
ail:
90 Annual Report 2010
National Insurance Commission
Ris
k Solu
tions
Lim
ited
Insu
ranc
e Solu
tions
Lim
ited
KAV
Insu
ranc
e B
roke
rs L
imited
Ris
k M
ana
gem
ent
and
Adv
isory
Ser
vice
s
Trin
ity
Insu
ranc
e B
roke
rs L
td.
Nea
r C
lub
10, K
and
a, A
ccra
Spi
ntex
Road,
Acc
ra.
Barn
ers
Road,
Ada
braka
, nea
r W
ork
ers
Colle
ge.
No.
120
B S
pint
ex R
d, In
dust
rial
Are
a
Cant
onm
ents
Rd.
Opp
osi
te S
t Th
om
as S
chool,
Osu
.
P. O
. B
ox M
60
6 A
ccra
Tel.
030
2-7
78820
Fax
: 030
2-
515
479
PM
B C
T 3
82
Cant
onm
ents
-Acc
ra
Tel.
030
2 9
3811
2, 0
24
3574
69
0
e-m
ail: is
lgha
na@
yaho
o.co
m
P. O
. Box
CT 2
488 C
ant
onm
ents
, Acc
ra
Tel.
42011
1,
Fax
: 42011
2
e-m
ail
:bka
vins
uranc
e@ya
hoo.
com
P. O
. AN
12331
Acc
ra-
Nort
h
Tel.
816
39
0, 8
16389
e-m
ail
:rm
as.g
h@ho
tmail.co
m
P. O
. Box
GP 1
80
0
Acc
ra
Tel.
027836
96
42
Annual Report 2010 91
National Insurance Commission
LIS
T O
F R
EG
IST
ER
ED
LO
SS A
DJU
STIN
G C
OM
PAN
IES
LIS
T O
F R
EG
IST
ER
ED
RE
INSU
RA
NC
E B
RO
KIN
G C
OM
PAN
IES
Com
pany
Com
pany
Loca
tion
Loca
tion
Cont
act
Det
ails
Cont
act
Det
ails
Many
o-P
lang
e &
Ass
oci
ates
40
Adw
adu
Str
eet,
Mat
ahe
ko, A
ccra
.
Nea
r Kem
bs H
otel
P. O
. Box
915
5, K
IA, A
ccra
Tel:
024
43279
60
, 020
813
29
62, 3
23878
Fax:
30
4977
E-m
ail: m
any
opl
ang
e@ya
hoo.
com
KEK
Rei
nsur
anc
e B
roke
rs (
Afr
ica)
Lim
ited
KEK
Insu
ranc
e B
roki
ng H
ous
eNo.
40
/41
Sen
chi
Str
eet
@ A
viat
ion
Rd.
Airpo
rt R
esid
ential.
Are
a,
Acc
ra
P. O
. Box
An
66
81
Acc
ra-N
ort
h
Tel:
230
06
5, 2
3216
5, 2
34
56
8
Fax:
2256
54
, 2217
16, 2
410
06
e-m
ail:
kek@
keki
nsur
anc
e.co
m.g
h
92 Annual Report 2010
National Insurance Commission
NOTES