Mr. Kekeli Gadzekpo, Chief Executive Officer of enterprise group limited has announced plans to explore new business opportunity in other West African countries.
Toward this move, the company has secured US $50 million to undertake strategic initiatives, including an entry into the health insurance business and also complete its process to enter the Nigerian financial service market with life insurance products.
“Our expansion into other West African countries will continue to be the top of the agenda item for 2019. With right issues successfully concluded and funds made available for expansion, we are confident that sooner than later, these objectives will be achieved,” Gadzekpo announced at the company’s Annual General Meeting last week.
Business and financial performance.
Enterprise Insurance becomes the market leader with 14.6% share of the general insurance market. Enterprise Life maintain its leadership with 26.6% of the Life Insurance market and Enterprise Trustees continue its dominance with 28% share of Asset under management which stood at GH¢ 3.01 billion at the close of 2018.
He indicated that the group’s net income increased by 11.9% to GH¢ 607.2 million as against GH¢ 542.7 million in 2017. This growth was driven predominantly by insurance premiums by the life and general business, which contributed 74.7% to Net Income.
Similarly, investment income also contributed 15.57% whilst fee income from trustees’s business contributed 3.25%.
Importantly too, net premium from life insurance subsidiary grew by 21.4% from GH¢ 286.5 million in 2017 to GH¢ 347.8 million in 2018, largely due to consistent improvement in the collection rate from 81% in 2017 to 85% in 2018 for individual life business.
Net premiums from January business also grew 12% from GH¢ 96.2 million in 2017 to GH¢ 107.7 million in 2018. Net investment income decreased by 18% to GH¢ 114.5 million in the year under review from GH¢ 139.7 million the previous year.
This performance was due to a 27.6% decline in investment income of Enterprise Life compared to 2017.
The underlying driver was decline of equity prices on the Ghana Stock Exchange which lead to capital losses on their stock holdings.In the other hand, investment income from the January insurance which was mainly from short term to medium term investments, grew by 21% from 2017.
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