Reinsurance firm, WACA Re has recorded 39 percent increase in gross premium written from $24.2 million in 2014 to $33.5 million at the end of 2015 financial year, with Nigeria and Ghana still its key markets. WAICA Re has also made significant inroads into other African countries as well as some selected countries in the Middle East and Asia.
Its retrocession premium within the same period equally increased to $2 million from $1.6 million in 2014. After adjusting for unearned premium reserve, Net earned premium increased by 46 percent from $19 million in 2014 to $27.7 million in 2015.
Kofi Duffuor, chairman of WAICA Re who announced the result at its Annual General Meeting in Sire lone said WAICA Re has seen another year of improved financial performance indicating that the Company is much stronger reinsurer than it was 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.”
Duffuor informed shareholders that the Company was paying a dividend of $1,500,000 for the year ended 31st December, 2014 since it could not hold the intended AGM, having paid an interim dividend of $1,000,000 and the balance of $500,000 now to be paid.
But for the 2015 financial year, he disclosed that the Company would be paying a cash dividend of $1,000,000 and a bonus share of $1,215,580, since it was going to do fund raising to boost its capital base.
Net profit saw a 53 percent increase to $5.8 million from $3.8 million in 2014 the total assets stood at $61.4 million, representing a 17 percent growth over the 2014 figure of $52.6 million while shareholder’s funds increased by 14 percent from $33.6 million in 2014 to $38.4 million in 2015.
“To strategically position the Corporation to underwrite larger businesses especially in the oil and gas industry among others, and to ensure a strong balance sheet that will make us more competitive in the reinsurance market, the Board recommend the raising of additional capital in 2016 to bring our issued capital to $100,000,000. The additional capital will also augment our working capital, enable us establish subsidiaries in Ivory Coast and Kenya and boost investments income, he noted.
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% 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.
Modestus Anaesoronye
