Donewell Insurance posts 85% growth

THE DONWELL Insurance Company limited recorded over 85% growth in gross premium income to ?16.25 billion in 2002 from a modest ?8.76 billion in 2001.

General business also grew by 63% to ?11.08 billion from ?6.78 billion whilst life insurance grew almost three times to ?5.17 billion from ?1.98 billion increase of more than 261%.

Addressing the annual general meeting (AGM) of the company, Mr. J. S. Addo, chairman said in an environment of declining interest rates, with its attendant low returns on investment, it was significant to note that the high performance in 2002 could only be achieved through extra hard work.

This was supported by the effect the declining interest rates had on the operations. Whereas, he said, short-term investments grew by nearly 300% to ?9.53 billion investment income increased by only 20%.

Mr. Addo said in his annual report that the period saw management expense ratio falling from 49% in the year 2001, to 36.9% in 2002 as compared with the industry ratio of 35%.

He said after meeting claims to the tune of ?2.14 billion, making provisions to comply with statutory reserves requirement, an additional prudent reserve of ?1.27 billion towards claim debt, and further provision of ?3.78 billion which secure reinsurance cover, the company returned a slightly lower profit before tax of ?876 million in the year 2002, compared with the ?942 million achieved in 2001.

He said despite these results the directors have recommended a dividend payment of ?100 per share, an increase of 67% over last year’s of ?60 per share.

Mr John Sackah Addo who is the chairman said a bill would be laid before parliament, which would require all insurance companies to have a minimum capital of the equivalent of US$1 million.

According to him the statutory requirements were complied which the company’s capital stood at ?7.67 billion were fully paid more than 200% from ?3.06 billion in 2001.

He however disclosed that shareholders funds have grown from ? 3.875 billion in 2001 to ?8.8 billion by the year of 2002.

He contended that the company has put on the market a new product called the “Executive Pension Plan” which is sequel to its popular life product, the Personal Pension Plan (PPP).

“The company will continue to develop more and more products to suit the average Ghanaian, “ he asserted.