Ezekiel Abiola Ekundayo, MD/CEO WAICA Re
WAICA Re has formed a group following its establishment of several subsidiaries last year, Mr Kofi Duffuor, group chairman, says in the corporation’s annual financial statements for 2018.
Last year, WAICA Re secured full approval from regulators in Kenya and Zimbabwe to establish subsidiaries in the East and Southern African insurance markets. WAICA Re has controlling shares in the two subsidiaries with $10m and $5m invested in Kenya and Zimbabwe respectively. This brings to three, the number of subsidiaries established, including WAICA Re Capital formed in 2015.
Mr Duffuor says that these developments have necessitated the creation of a group structure and the employment of seasoned professionals to help build the corporation.
Premium growth
He adds that there was subdued gross premium growth of 4% from $55.8m in 2017 to $58.0m in 2018 resulting from the company’s decision to concentrate on profitable businesses and stop business dealings with some brokers who had only added negatively to the company’s debt ratio by not paying premiums.
The growth was driven mainly by the Tunisian, Nigerian and francophone markets which grew by134%, 52% and 51% in that order. Strong growth was also recorded in Sierra Leone 50% and Liberia 33%. There was however negative growth in the Ghanaian and our Diaspora markets of -6% and -39% respectively.
The group’s premium income distribution by country is as follows:
| Country | 2018 $m | 2017 $m | Increase/decrease |
| Nigeria | 19,038 | 12,486 | 52% |
| Ghana | 12,886 | 13,779 | -6% |
| Sierra Leone | 1,243 | 827 | 50% |
| Liberia | 279 | 210 | 33% |
| Gambia | 234 | 220 | 6% |
| Francophone zone | 7,081 | 4,677 | 51% |
| Tunisia | 3,164 | 1,351 | 134% |
| Diaspora zone | 13,541 | 22,285 | -39% |
| Kenya | 201 | – | |
| Zimbabwe | 305 | – | |
| Total | 57,972 | 55,835 | 4% |
A snapshot of 2018 key financial performance indicators compared with 2017 restated accounts is as follows:
| 2018 | 2017 | Increase/decrease | |
| Gross Premium written | $58.0m | $55.8m | 4% |
| Net Earned Premium | $52.6m | $49.2m | 7% |
| Commission expense | $16.1m | $15.8m | 2% |
| Claims incurred | $16.9m | $17.5m | -4% |
| Technical profit | $20.5m | $16.7m | 23% |
| Underwriting profit | $3.0m | $6.2m | -50% |
| Management Expenses | $17.4m | $10.6m | 65% |
| Investment income | $3.3m | 2.5m | 31% |
| Profit before tax | $6.8m | $5.5m | 25% |
| Shareholders’ funds | $86.0m | $81.6m | 5% |
| Total asset | $123.5m | $119.2m | 5% |
WAICA Re was established as a reinsurance organisation to help mitigate the effects of the lack of reinsurance capacity within the West African insurance industry. The company has since repositioned itself and strengthened its business across all the regions of Africa. WAICA Re has its headquarters in Freetown, Sierra Leone and holds branches in Ghana, Nigeria, Ivory Coast and Tunisia and subsidiaries in Kenya and Zimbabwe.
Source : MiddleEast Insurance Review
