The State Insurance Company (SIC) PLC has delivered an impressive financial performance for the 2024 fiscal year, overcoming a turbulent global and domestic economic climate marked by heightened inflation, sharp currency depreciation, and wavering investor confidence.
The announcement was made at SIC’s 18th Annual General Meeting (AGM), presided over by the company’s Chairman, Mr. Bernard Ahiafor, MP. Presenting the Annual Report and Financial Statements for the year ended December 31, 2024, Mr. Ahiafor emphasized the company’s unwavering focus on strategic discipline and execution, even as economic uncertainty persisted worldwide.
The global economy in 2024 continued to feel the aftershocks of the COVID-19 pandemic, ongoing geopolitical tensions, and tightened monetary policies. While inflation retreated slightly in advanced markets, many developing economies, including those in Africa, struggled with mounting debt, limited capital inflows, and volatile currencies.
Ghana was no exception. The Ghanaian cedi depreciated by 28% against the US dollar, a sharp contrast to the 9.78% loss recorded in 2023. Inflation climbed to 23% in November 2024, according to the Ghana Statistical Service, signaling progress from the 2022 peak of 54.1%, yet underscoring the economy’s fragile recovery. The Domestic Debt Exchange Programme (DDEP) continued to weigh on investor confidence, affecting liquidity and disposable incomes.
Despite these challenges, Ghana’s insurance industry showed robust growth in 2024. The general insurance sector saw notable increases in gross written premiums, especially in motor, fire, and engineering lines. Industry-wide, insurers paid out approximately GHS 1.8 billion in claims, underscoring their steadfast commitment to policyholder protection.
SIC Insurance PLC’s financial results stood out in the sector:
* Insurance Revenue: GHS 559.5 million (49.9% growth from 2023)
* Profit Before Tax: GHS 83.2 million (2023: GHS 22.8 million)
* Profit After Tax: GHS 53.4 million — a 316.9% year-on-year increase
* Shareholders’ Funds: GHS 670.4 million (up 40.1%)
* Earnings Per Share: GHS 0.2730 (2023: GHS 0.0655)
* Return on Shareholders’ Funds: 7.9% (2023: 2.6%)
The Chairman credited this performance to prudent underwriting, robust risk management, and disciplined cost control, while commending management and staff for their steadfast dedication.
In recognition of these achievements, the Board of Directors has proposed a dividend of GHS 0.0511 per share, pending shareholder approval.
A significant milestone for the year was SIC Insurance’s full implementation of IFRS 17, the new global accounting standard for insurance contracts. The company now stands among a select few in the industry to achieve this, enhancing transparency and comparability with international peers.
In 2024, SIC also reinforced its Enterprise Risk Management (ERM) framework, with a keen focus on emerging risks such as cyber threats, credit exposures, and macroeconomic instability, and measures designed to ensure resilience in a complex environment.
Looking ahead, SIC Insurance PLC is cautiously optimistic. With insurance penetration in Ghana hovering around 1%, significant opportunities for industry expansion remain. The company aims to leverage digital transformation, inclusive insurance initiatives, and ongoing government reforms to drive its next phase of growth.
“SIC Insurance PLC enters 2025 with a strong capital base, a clear growth strategy, and a high-performing workforce,” Mr. Ahiafor declared. “We are poised to deliver lasting value to shareholders, customers, and the wider Ghanaian community.”
He closed by expressing heartfelt appreciation to clients, shareholders, regulators, partners, and staff—acknowledging their vital role in SIC’s enduring success.
Source: Apexnewsgh.com
