Foremost insurer, SIC Insurance Company Limited has bounced back to making profit. The company posted a profit before tax of GHc 12,832,687 in 2013, a feat described by the Chairperson of the company, Mrs. Felicity Acquah as a positive indicator for shareholders.
“However, as a result of the huge debt write-off of GHc 7,976,682 and restructuring expenses of GHc 4, 292,882 in the year, your company made a profit before of GHc 563, 123,” she added.
Mrs. Acquah was addressing the 7th Annual General Meeting (AGM) at the College of Surgeons and Physicians in Accra on Thursday.
She said that with result, the company had “bounced back to making profits” with a modest GHc 594, 652 profit after tax in 2013.
Nevertheless, she announced that the Board of Directors has proposed the non-payment of dividends to shareholders in respect of the company’s operations for 2013, following challenges such as indicated in the foregoing and a debt write-off within the same period.
“We are hopeful that your company will make a good turnaround next year to enable shareholders enjoy impressive returns on their investment,” Mrs. Acquah explained, at the AGM which discussed such additional issues as the approval of remunerations for Directors, the remuneration of auditors, and the election of Directors and re-election of past directors.
She disclosed that in consultation with the NLC, the company has written off GHc 7,976,682 in debts, in accordance with their new credit guidelines that requires insurance companies to write off all outstanding premiums that has been in existence for more than a year.
“Although this amount has been written off, the Board has challenged the Executives of the company to ensure that at least 50% of the amount is collected by the end of 2014,” she said, indicating that with the introduction of the ‘No Premium, No Cover’ policy, debt write-offs would be a thing of the past.
Mrs. Acquah added that the Board was reviewing other projects strategically initiated by the company to expand its brand to other markets in the West African sub-region, including Liberia and Sierra Leone. She said the company had also rekindled interest to invest in a Reinsurance Company.
The Managing Director (MD), Mrs. Doris Awo Nkani, said the company was focussed on building a strong, robust and profitable business this year, aside deepening its gains among the insuring public.
She said the company would this year consider areas such excellent customer service, prudent underwriting, expedited claims handling processes, innovation and human resource development.
She touted the introduction of the ‘No Premium, No Cover Policy’ by the regulator National Insurance Commission (NLC) as an opportunity to boost the cash and overall financial position of the company, saying it would trigger an “improvement in the structuring of our investment portfolio.
“Due to the scale of investment in our company’s balance sheet and the impact of investment results on its profitability, the management of these investments is a key function that can create significant value for the company’s policyholders in terms of prompt claims payment and shareholders in terms of dividends flowing from the profits of the company,” she said.
She said a total of GHc 20,787,537.00 was paid in claims to policyholders and claimants in 2013, describing it as measure by the company to contribute significantly to the continuation of business and economic activities in the country.
By: Evans Effah/citifmonline.com/Ghana