By Kofi Ahovi
Enterprise Insurance Company (EIC) is planning to establish a holding company to oversee all its subsidiaries.
The establishment of a holding company became necessary due to the Insurance Law which does not permit insurance companies to fully engage in profitable ventures outside the insurance sector.
The essence of the establishment of the holding company is to redeploy all landed properties of EIC to the holding company.
It is also to increase their earning capacity for the benefit of share holders as well as the company.
The holding company would own 100% of EIC, 51% of Consortium House Ltd, 51% ELAC (all subsidiaries of EIC) as well as own majority shares in all new subsidiaries that may be established.
The new subsidiaries may include real estate development, pension scheme and insurance in West Africa, among others
Currently EIC has supervision over all its subsidiaries; hence the advent of the holding company indicates that EIC would now be a subsidiary of the holding company.
The company after the final report on the holding company would seek approval from its shareholders through an extraordinary general meeting (EGM).
EIC was established in 1924 as the first insurance company in Ghana, it was also the first insurance company to be listed on the Ghana Stock Exchange.
EIC is rated “AA-” by global credit rating company of South Africa in 2007/2008 as the insurance company with a high claim paying ability.
In a related development, the company recorded a gross premium income of GH¢19.9 million in 2008 from GH¢16.5 million in 2007, representing an increase of 20.6%. Net income recorded an increase of 13.0% from GH¢7.7million in 2007 to GH¢8.7 million in 2008.
The group on the other hand recorded gross premium of GH¢35.3million in 2008 up by 32.2% from the 2007 level of GH¢26.7 million. While net written premium also saw an appreciable increase of 35.6% in 2008 from GH¢17.6 million to GH¢23.9 million.
The figures were made public at EIC’s annual general meeting last week.
The group recorded after tax profit of GH¢4.4 million in the year under review compared to GH¢3.0 million in 2007.
EIC recorded a total of 11,719 new businesses in 2008 culminating in a premium of GH¢6.7 million, representing 33.8% of total gross premium.
The year 2008 produced virtually no underwriting profit as claims incurred increased significantly from GH¢2.7 million in 2007 to GH¢4.3 million (59.0%). About 70% of the claims incurred came from motor account.
Enterprise Insurance Company (EIC) is planning to establish a holding company to oversee all its subsidiaries.
The establishment of a holding company became necessary due to the Insurance Law which does not permit insurance companies to fully engage in profitable ventures outside the insurance sector.
The essence of the establishment of the holding company is to redeploy all landed properties of EIC to the holding company.
It is also to increase their earning capacity for the benefit of share holders as well as the company.
The holding company would own 100% of EIC, 51% of Consortium House Ltd, 51% ELAC (all subsidiaries of EIC) as well as own majority shares in all new subsidiaries that may be established.
The new subsidiaries may include real estate development, pension scheme and insurance in West Africa, among others
Currently EIC has supervision over all its subsidiaries; hence the advent of the holding company indicates that EIC would now be a subsidiary of the holding company.
The company after the final report on the holding company would seek approval from its shareholders through an extraordinary general meeting (EGM).
EIC was established in 1924 as the first insurance company in Ghana, it was also the first insurance company to be listed on the Ghana Stock Exchange.
EIC is rated “AA-” by global credit rating company of South Africa in 2007/2008 as the insurance company with a high claim paying ability.
In a related development, the company recorded a gross premium income of GH¢19.9 million in 2008 from GH¢16.5 million in 2007, representing an increase of 20.6%. Net income recorded an increase of 13.0% from GH¢7.7million in 2007 to GH¢8.7 million in 2008.
The group on the other hand recorded gross premium of GH¢35.3million in 2008 up by 32.2% from the 2007 level of GH¢26.7 million. While net written premium also saw an appreciable increase of 35.6% in 2008 from GH¢17.6 million to GH¢23.9 million.
The figures were made public at EIC’s annual general meeting last week.
The group recorded after tax profit of GH¢4.4 million in the year under review compared to GH¢3.0 million in 2007.
EIC recorded a total of 11,719 new businesses in 2008 culminating in a premium of GH¢6.7 million, representing 33.8% of total gross premium.
The year 2008 produced virtually no underwriting profit as claims incurred increased significantly from GH¢2.7 million in 2007 to GH¢4.3 million (59.0%). About 70% of the claims incurred came from motor account.
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