Insurers incur GH¢765m underwriting loss
Insurance companies in the country, Life and Non-life incurred underwriting loss of GH¢765 million between 2013 and 2015.
This was contained in the latest National Insurance Commissions report. A breakdown of the loss showed that the life portfolio incurred a total underwriting loss of GH¢ 588 million. In 2013, Life companies reported GH¢126million, while GH¢158million and GH¢312million were recorded in 2014 and 2015 respectively.
The trend in the non- life sector was the same for the period, as it recorded negative performance totaling GH¢ 77million year on year losses at GH28 million in 2013, GH¢ 84million – 2014 and GH¢65million – 2015. As a result, the industry relied heavily on investment income to offset these technical losses.
These investments are mostly in the form of deposits, government of Ghana securities and other sources (exchange gains, sales of PPE’s and investment properties revaluation).