SIC Insurance Company Limited posted a solid performance for 2012, with GH¢98.9 million as gross earned premium income indicating a growth of 24 per cent compared to the performance of GH¢79.6 million in 2011.
The company’s net earned premium income after reinsurances grew by 24 per cent from GH¢61.6 million in 2011 to GH¢76.3 million in the 2012.
The Chairman of the Board of Directors of SIC, Mr Max Cobbina, disclosed this at its 6th annual general meeting (AGM) in Accra.
He said the board had since its inception in 2009, been monitoring movement in the premium debtors accounts of the company that grew from GH¢33.2 million in 2009 to GH¢37.9 million in 2010 and to GH¢39.4 million in 2011.
“In 2012, the board critically analysed the age profile of the company’s premium debtors stock of GH¢39.4 million indicated in the 2011 audited report and financial statement, and decided to write off GH¢19.7 million, a decision which was taken in consultation with the National Insurance Commission (NIC) in line with their new credit guideline that requires insurance companies to write off all outstanding premium that has been in existence for more than a year” he said.
Stressing that “notwithstanding these challenges coupled with the fact that the insurance industry remained competitive in 2012; the company could have still made a profit before tax of GH¢12.1 million as against GH¢7.3 million made in 2011, if not for the huge debt write off of GH¢19.7 million in 2012. This brought a loss of GH¢7.5 million in 2012.
Other board members of SIC who were present at the meeting which was held at the Ghana College of Physicians and Surgeons in Accra included, Dr Vitus Anaab-Bisi, Mr Kofi Amoah, Mrs Yvonne Osei Tutu, Mr Kingsley Awuah-Darko, Dr Sydney Yayah Laryea, Mr Ato Pobee Ampiah, Mr Justice Benjamin O. Tetteh and Mrs Doris Awo Nkani, the Managing Director.
Mr Cobbina announced the progress of the subsidiarisation of the company’s Bob Freeman Clinic, the construction of a modern hospital expected to be completed by the first quarter of 2014, and the Estate and Mortgages Department which is also on-going, and expected to be completed by the third quarter of 2014.
He expressed optimism on behalf of the board and management that the company’s prospects in 2013 were bright and that they would work hard to ensure a better performance of the company in the future.