Stacks of US fifty and one hundred dollar bills in money bag

WAICA Reinsurance Corporation Plc’s gross premium income grew from $24.2 million in 2014 to $33.5 million in its financial year ended December 2015, representing a 39 per cent growth.
It has five member-countries, including Nigeria and Ghana, as its key markets. Others are Sierra Leone, Gambia and Liberia.
However, the Corporation was unable to hold the 2014 AGM as a result of the constraints the Ebola virus epidemic placed on its economies and operations.
At the AGM, the Chairman Mr. Kofi Duffuor, said while 2015 was challenging due to the deadly Ebola virus epidemic, it was also a year of further progress for WAICA Re in terms of strategy, operations and a robust financial performance.
He said the retrocession premium equally increased to $2 million from $1.6 million in 2014, stating that after adjusting for unearned premium reserve, net earned premium increased by 46 per cent from $19 million in 2014 to $27.7 million in 2015.
He said: “Interest rates remained stable during the first three quarters of the year in the countries in which we hold investments, but in the fourth quarter, rates on fixed deposits in Nigeria took a downward trend, falling from 10 per cent in September 2015 to six per cent in December, 2015.
“We also have to disinvest some term deposits to acquire investment properties. As a result, investment and other income saw a marginal increase from $2.1 million in 2014 to $2.3 million in 2015.
“The growth in premium income came with a corresponding increase in claims and commission expenses. Of particular significance to our claims expenditure was the flooding that took place in Ghana in June 2015. Underwriting expenses, therefore, grew by 47 per cent to 17.1 million from the 2014 figure of $11.6 million. Management expenses increased from $5.8 million in 2014 to $7.1 million in 2015.”
He noted that as recorded in 2014, the United States dollar once again proved stronger against most currencies on the back of a robust growth of the US economy, adding that there was, therefore, a further depreciation of currencies across the WAICA member countries as well as most of the countries in which they generate premium income.
The effect, he stated, was an exchange loss of $1 million.
“For the fourth year, your Corporation continues to improve on its bottom line. Net profit saw a 53 per cent increase to $5.8 million from $3.8 million in 2014. As at 31st December, 2015 WAICA Re’s total assets stood at $61.4 million, representing a 17 per cent growth over the 2014 figure of $52.6 million while shareholders’ funds increased by 14 per cent from $33.6 million in 2014 to $38.4 million in 2015.
”Our Life Reassurance unit commenced operations in June, 2015. The Unit was responsible for all Life reassurance business across Africa. The Unit generated a premium income of $83,447 during the period. After accounting for commission expenses of $22,131 and management expenses of $76,745, a loss of $15,429 was made. We hope to grow this line of business to boost the income of the Corporation.”
On dividend, the chairman said the Board recommended for shareholder’s approval, a dividend of $1.500 million for the year ended 31st December, 2014.
Since they could not hold the intended AGM, he said, they decided to pay an interim dividend of $1million.
‘’For the financial year, we are recommending a cash dividend of $1,000,000 and a bonus share of $1,215,580. WAICA Re is a much stronger reinsurer today than we were a year ago. We have set the platform for a greater future, established strong financial, technical and operational paths that will spur us on to be the preferred reinsurer for our cedants and brokers, providing cover with speed and efficiency to delight business partners and build shareholder value,’’ he said.


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