Ghana Reinsurance PLC (Ghana Re) is set to become the first reinsurance company to be listed on the Ghana Stock Exchange (GSE), according to the Director General of the State Interests and Governance Authority (SIGA), Prof. Michael Kpessa-Whyte.
The listing, once completed, would enable Ghana Re to mobilise additional capital, boost investor confidence, and support the company’s expansion ambitions. Prof. Kpessa-Whyte made the announcement during the 22nd annual general meeting of Ghana Re held in Accra on Tuesday.
“The Minister of Finance has authorised the study of many of these companies to understand where they stand with regards to their profile, after which there would be a cabinet memo on the decision, and once approved, the technical processes would begin to list some of the companies, and Ghana Re is a forerunner in that arrangement,” he stated.
For now, he said, the whole idea of using the stock exchange as a means of mobilising more capital and diversifying shareholders was at the beginning stage, with President John Mahama interested in ensuring companies were listed and aligned with certain rules associated with corporate governance.
“So we are confident that, once the Board and management of Ghana Re is excited about the possibilities and SIGA is aligned, it would not be long before the initiative takes off,” he stated.
He mentioned that the move was also part of Ghana Re’s new Board’s initiative to revamp and reposition the company to become more attractive for the stock exchange and subsequently gain a high level of subscription. He, however, commended Ghana Re for consistently paying dividends to the government as a state-owned organisation.
For the year 2024, Ghana Re paid a dividend of GH¢13 million to the government. Though a decline compared to the GH¢24 million paid in 2023, Prof. Kpessa-Whyte attributed the development to the company’s efforts to retain some profit for activities and its intention to inject some capital into the business.
He, however, mentioned that the government would be looking forward to increased profit and dividend in the coming year. “But most importantly, we are happy that Ghana Re can pay dividends to the government and must be an example to other companies,” he stated.
The Managing Director for Ghana Re, Mr. Seth Kobla Aklasi, also expressed excitement over listing Ghana Re on the stock exchange since the market was performing well. Fundamentally, he said, they would not want to burden the government to inject funds for expansion purposes, especially with insurance; hence, listing on the stock exchange to give the company more money to expand into other territories was a good move.
He reiterated management’s commitment to ensuring a successful listing and maintaining Ghana Re’s status as one of Ghana’s most efficiently run and self-sustaining entities. A decline in the dividend paid, he further explained, could be attributed specifically to growth in insurance expenses, management expenses, and claims, which impacted the bottom line.
BY TIMES REPORTER
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