The West African Reinsurance Corporation Plc, (WAICA Re), said it has concluded the first phase of its three-phase capitalisation project with a subscription success level of 90 per cent.
WAICA Re, also said in the year 2016, it successfully achieved its strategic objective of growing its business beyond the Anglophone West Africa region, pointing out that it attained a notable growth level of 250 percent in Francophone Africa region in 2016 while maintaining 80 percent growth in other overseas countries within the period
The company’s chairman, Kofi Duffor, who disclosed this at the annual general meeting of the company held in Accra, Ghana, said the capitalisation process was started by the company in 2016, through a Rights Issue, which involved the issue of 14,472,816 ordinary shares at $1.52 per share at a ratio of 0.5669 new share for every one existing share held.
He said that the offer was to raise additional share capital of $21,998,680 to support the Corporationâ€™s strategic drive and business expansion.
“At the end of the offer, 13,031,190 shares were subscribed valued at $19,807,408.80, representing a success rate of 90 per cent”, said Duffor.
According to him, the company, established by the West African Insurance Companies Association (WAICA), commenced operations with modest capital pooled from member companies, and the public in July 2011, adding that its capital base was later raised to $25 million in December 2013.
Duffor, said despite the exchange rate volatility, which affected the dollar denominated figures of premiums generated, WAICA Re, recorded 47 per cent growth in gross premium income from $33.5 million in 2015 to $49.2 million in 2016.
Presenting country by country growth recorded by the company during the period, Duffor said: â€œIn the WAICA Re member countries, Sierra Leone recorded the highest level of growth of 153 per cent, followed by Liberia 60 per cent, then Gambia 26 per cent, Ghana 23 per cent and Nigeria eight per cent. This is reflective of our continuous effort to grow the business in our home markets.”
He explained that the eight per cent moderate growth from Nigeria was as a result of the significant naira depreciation during the period under review, adding that despite the difficult economic conditions in Nigeria, the company’s team in Nigeria was doing an excellent job in mitigating the impact and we see good growth opportunities in 2017.
On general growth records of the company within the sub- region, the WAICA boss sated,
â€œIn line with our strategic objectives of growing the business beyond the Anglophone West Africa region, we attained a notable growth level in the Francophone Africa region in 2016. The French region grew by an impressive 205 per cent while earnings from other overseas countries also grew by 80 per cent.â€
According to him, while Nigeria and Ghana continued to be its major markets, collectively contributing 48 per cent of the 2016 premium income, the Francophone and the Diaspora regions (comprising other African countries and some stable/selected countries in the Middle East and Asia) are now significant premium income contributors.
These, he said brought in 11 per cent and 37 per cent respectively to the gross premium income of the sub-regional reinsurer.
Duffor, said overall performance of the company during the period under review showed a mixed picture as gross premium written grew by 47 percent, from $33.5million in2015 to $49.2m in 2016.
Retrocession Premium grew from $2.0 million $3.7 million in 2016 showing 81 percent growth, while the company’s net earned premium; rose by 40 percent from $27.8 million in 2015 to $42.5m in2016.
Analysing other growth indicators of the company, Duffor said that total Income from operations was up by 41 percent to $42.5m (2015: $30.0m); underwriting expenses; up by 39 percent to $23.8m (2015: $17.1 m),management expenses and Finance cost; up by 74 percent to $12.5m (2015: $7.2m),Profit before tax; up by 8 percent to $6.2m (2015: $5.8m),Total asset; up by 50 percent to $92.3m (2015: $61.4m) and Shareholderâ€™s funds up by 64 percent to $62.9m (2015: $38.4m).