BY NKECHI NAECHE-ESEZOBOR—-Shareholders of WAICA Reinsurance Corporation (WAICA Re), have approved for the Board to pay a dividend of $0.10139 per share for the financial year 2022.
The shareholders gave their approval at the 2022 Annual General Meeting(AGM) in Accra, Ghana, over the weekend, the figure amounting to $6million in the year under review as against $5million declared in 2021 financial year end.
Presenting the financial statement, the Group chairman, Kofi Duffuor, said it closed the year with underwriting profit growth of 32% to $25.6 million in 2022, when compared with $19.4 million achieved in 2021, while technical profit grew from $37.9 million in 2021 to $48.3 million in 2022 representing a 27% growth.
Gross Written Premium(GWP) was not left out as it rose to $214.2 million, which represents 40 percent growth compared to $153.3 million achieved in 2021, Facultative business amounted to $160.2 million representing 75% of GWP while Treaty brought in $54 million which is 25% of GWP.
On the breakdown of how the premiums were generated, he said, Property generated 50% of the 2022 GWP followed by Casualty with 16% and Engineering 11% even as Oil & Gas brought in 10%, Marine & Aviation 7%, Motor 3%, and Life 3%.
In comparison to 2021 business, he said: “there was a robust growth from 2021 to 2022 for all classes of business except Motor. Property grew by 83%, Life by 56%, Engineering by 51%, Marine & Aviation by 28%, Oil & Gas by 27%, but Motor declined by11%.”
In relative terms, he stated that, Liberia led Gross Written Premium(GWP) growth momentum by 229%, followed by Kenya 105%, Zimbabwe 94%, Asia and Middle east 65%, Gambia 40%, Tunisia 36%, Nigeria 35%, Ghana 2% and growth decelerate for the rest of Africa by 12% and Sierra Leone by 81%
“Our dominant market Nigeria contributed 26% of total GWP whilst Ghana brought in 10%. Altogether, Anglophone West Africa, which is our home market, continues to be our backbone by contributing 37% of our total GWP, with Francophone West Africa contributing 8%, Tunisia 11%, whilst Middle East, the rest of Africa and Asia brought in 7%, 6% and 5% respectively. Our subsidiaries in Zimbabwe and Kenya contributed 13% each,” he pointed out.
Retrocession premium, he disclosed, increased by 81% from $24.2 million in 2021 to $43.7 million in 2022 driven mainly by increased business growth and the need to protect the net account. As a result, overall premium retention ratio decreased from 84% in 2021 to 80% in 2022, he said, adding that, after adjusting for unearned premium reserve, net earned premium increased by 8.2% to $158.4 million in 2022 from $146.4 million in 2021.
On claims paid he said that “despite an increase in business volume and actuarial claims reserve, he added that, net claims incurred declined by 20% to $55.7 million in 2022 from $69.9 million in 2021 as Facultative claims contributed 59% of total claims paid whilst treaty claims was 41%. Consequently, he said, the net incurred loss ratio reduced to 35% in 2022 compared to 48% in 2021.
Operating expenses increased year on year by 23% from $18.5 million in 2021 to $22.7 million in 2022, the Group displayed a strong underwriting profitability as a result of sound underwriting and risk selection.
Investment and other income, he noted, witnessed an increase of 16% from $4.6 million in 2021 to $7.2 million in 2022 with net profit before tax rising by 41% from $21.2 million in 2021 to $29.9 million in 2022.
He said, improved premium collection enabled the group to increase cash and investment assets by 28% to $184 million in 2022 from $144.4 million in 2021.
