The Ghanaian government has announced plans to list a portion of state-owned Ghana Reinsurance (Ghana Re) on the Ghana Stock Exchange (GSE) as part of efforts to strengthen the state-owned reinsurance firm's capital base and attract private investment.
The director general of the State Interests and Governance Authority (SIGA), Prof Michael Kpessa-Whyte, made the announcement during the 22nd annual general meeting of Ghana Re held in Accra on 7 October, reported the newspaper, Ghanaian Times.
The Minister of Finance has authorised a study to assess the company’s financial position and performance profile, after which there would be a Cabinet memo on the listing decision, and once approved, the technical process would begin to list the company.
Prof Kpessa-Whyte said Ghana Re remains one of the few state-owned enterprises that have not only made profits but have also paid dividends to the government each year.
The Ghana Re group posted a 53% increase in insurance revenue to GHS1,049m ($85.9m) in 2024, from GHS684m in 2023. However, profit after tax declined by 63% from GHS224.90m in 2023 to GHS84.22m in 2024, mainly due to losses on Euro bonds, higher claims and commissions, impairment charges, modification and increased management expenses.
Ghana Re chairman Mr Samuel Sarpong said that the company was prioritising stabilising the company’s profitability, growing its retained earnings, and expanding the capital base to help improve its credit rating, attract business and increase business profitability for improved dividend payments.