WAICA Reinsurance increases shareholders’ value
The Chairman of the West Africa-based reinsurance company, WAICA Re, Mr Kofi Duffuor, has said the company has enhanced its underwriting capacity and is poised to expand operations to other parts of Africa.
Mr Duffuor said the company was upbeat about the global economic recovery, which it would take advantage of to increase its premium production, adding that it had also improved its retrocession programme – the process of sharing risk with another layer of reinsurance company.
Mr Duffuor said this at the second annual general meeting (AGM) of the company in Accra.
The meeting approved the annual report and accounts of the company for 2013, which showed that the gross premium of the company had moved up from $7.16 million in 2012 to $15.92 million in 2013 and net profit before tax from $374,169 to $2.19 million.
Mr Duffuor announced to the shareholders, who were well represented either personally or by proxy, that the company raised additional capital from members and other investors
, which brought the total paid-up capital of the company to $24.3 million and shareholders’ funds to $29.87 million at the end of 2013.
WAICA Re is the reinsurance company belonging to West Africa Insurance Companies Association.
It could not convene its AGM last year due to the Ebola epidemic in its host country, Sierra Leone, compelling board members to table an amendment of a clause in the articles of association which allowed the annual meeting to move around member countries.
At the Accra AGM, the shareholders re-elected Mr Ekow Dadzie-Dennis as director of the company, while Messrs Mohamed Babatunde Cole and Thierry Ravoaja were also elected to serve as fresh board members.
The company started operations with modest capital pooled from member companies and the public in July 2011. It later raised more capital to move it to $25 million in December 2013. Currently, the reinsurance company has about $28 million paid up capital.
Mr Duffuor said WAICA Re planned to continue to soar higher and expand its capacity and operations, adding that WAICA would establish a contact office in Kenya next year to cater for East Africa and the other regions.
Financial performance
The company has grown its total assets from $6.33 million in 2011 to $12.6 million in 2012 and $41.4 million in 2013. Provisional figures indicate that the assets grew further to $56.06 million last year; a figure that the board and management envisage would reach $65.85 million by the end of this year.
While the reinsurance company’s gross premium grew from $7.16 million in 2012 to $15.92 million in 2013, profit before tax (PBT) went up from $374,169 in 2012 to $2.19 million in 2013. Provisional figures indicate that PBT went up to $4.09 million last year and that is projected to cross the $6 million mark by the close of this year.