Life Insurance market showing signs of life

Following several years of stagnation under a composite structure, the Ghanaian Life Insurance Industry is spluttering into life once more. Elliot Williams examines how Separation, Technology and Innovation are helping insurers grab the opportunity.

There are strong indications showing that Life Insurance Business is the insurance industry’s future in Ghana; since the separation of life business from non-life, the sector has continued to improve in all its financial indicators.

The framers of that law to separate life from non-life in 2006 knew why they did so. In the past when it was in a composite operation, Life was deemed as a department under most insurance companies.

After 12 years of separation, Life insurers have brought technological and product innovation which now tend to boost income. For instance, the latest financial figures of Life companies before B&FT indicate that Life did better than non-Life counterparts in the year under review.

The latest unaudited Supervision Department Report (SDR) for the 4th quarter of 2019 by the National Insurance Commission (NIC), released recently, points to the fact that life financial indicators are growing faster than non-Life counterparts – which is proving the fact that “Life represents the insurance industry’s future in Ghana”.

As at the close of 2019, total assets of Life companies went up by 23% from GH¢3.12billion in 2018 to GH¢3.823billion in 2019. Five companies contributed about GH¢2,897.8billion to the total assets of the Life companies, representing 24.2% of total assets value.

The five companies are: Enterprise Life Assurance Company – GH¢837.4million: SIC Life Company – GH¢716.9million; Star Life – GH¢692.4million; Glico Life – GH¢391.2million; and Old Mutual Assurance Ghana – GH¢259.9million.

The rest are Metropolitan Life – GH¢182.1 million, Prudential Life – GH¢161.4 million, Donewell Life – GH¢105.5, Mi-Life – GH¢85.7, GN Life – GH¢61.8, Quality Life – GH¢59.6, Ghana Life – GH¢52.3, Phoenix Life – GH¢43.6.

Others are Allianz Life – GH¢32.9million; Vanguard Life – GH¢31.4million; Saham Life – GH¢23.6million; Ghana Union Assurance Life – GH¢18.9million; First Insurance – GH¢17.9million; and Exceed Life – GH¢13.6million.

The Life industry also generated total premium income of GH¢1.649billion as against non-Life’s GH¢1.558billion in the year under review.

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The five top income earners for that period are Enterprise life – GH¢436.6million; SIC Life – GH¢353.9million; Star Life – GH¢260.8million; Glico Life – GH¢120.9million; and Prudential Life – GH¢115.4million.

The five companies contributed gross premium income of GH¢1,287.6billion, representing 22% of the total market gross premium. Enterprise Life once again topped in income generation, followed by SIC Life; Star Life was third, with Glico Life fourth and Prudential Life fifth.

The other income earners include: Metropolitan Life GH¢68.7million; Old Mutual Life – GH¢48.5million; Ghana Life – GH¢21.6million; Saham Life – GH¢19.8million; Phoenix Life – GH¢19.6million; Allianz Life – GH¢18.6million; Quality Life – GH¢17.9million; Vanguard Assurance – GH¢17.4million; Donewell Life – GH¢16.2million; Ghana Union Assurance – GH¢10.6million; GN Life – GH¢9.7million; Hollard Life – GH¢6.8million; First Insurance Company – GH¢3.12million; and last, Exceed Life contributed only GH¢663,491.

 

 

Company Total Assets Inv. Assets Gross Premium Net Written

 Premiums

Gross policyholder benefit paid Net Policyholders Benefit Payment Management Expenses Commission Exp. Commission Income Policyholder Benefit Cover Expense Ratio Market Share
Allianz Life Insurance Company Limited               32,919,417                  18,025,867                  18,557,383                       17,734,783                    2,368,667                         2,368,667           12,865,337                    5,046,938              110,153 350% 105% 1%
Donewell Life Insurance Company Limited             105,569,734                  95,805,478                  16,155,332 –                            81,644                    6,846,425                         6,846,425             8,828,012                    1,495,082                24,271 181% 64% 1%
Enterprise Life Assurance Company Limited             837,415,962               689,884,331               436,673,957                    187,188,934               195,415,088                    196,625,659           69,529,964                  67,739,520 142% 32% 34%
Exceed Life Assurance Company Limited               13,645,694                    8,859,737                        663,491                             663,491                        331,023                             331,023             1,058,132                          69,129 550% 170% 0%
First Insurance Company Limited               17,930,933                  12,242,741                    3,118,830                         2,713,474                        298,750                             298,750             7,513,006                        468,454 441% 305% 0%
Ghana Life Insurance Company               52,323,370                  29,787,053                  21,597,603                       21,470,453                  15,291,839                       15,291,839             7,900,660                    2,600,667 105% 49% 2%
Ghana Union Assurance Life Company Limited               18,977,933                  10,743,258                  10,607,889                         8,394,013                    1,969,940                         1,969,940             4,731,997                    1,412,744 436% 101% 1%
Glico Life Insurance Company Limited             391,220,429               343,333,384               120,982,255                    119,690,357                  81,122,729                       81,122,729           28,910,630                    8,561,152 226% 31% 9%
GN Life Assurance Company Limited               61,798,654                  43,134,222                    9,715,567                         9,689,563                    1,227,336                         1,227,336                 773,926                        773,926                  7,460 281% 67% 1%
Hollard Life Assurance Company Limited               33,115,419                  15,387,872                    6,850,701                         4,840,330                    1,365,216                         1,365,216             9,881,631                    1,545,615 2299% 236% 1%
Metropolitan Life Insurance Ghana Limited             182,143,685               162,969,827                  68,756,642                       32,667,739                  34,037,036                       33,733,434           14,513,283                  24,337,165 146% 59% 5%
Mi Life Insurance Company Limited               85,728,801                  51,784,739                  48,504,136                       35,570,665                  18,339,530                       18,143,364           21,900,704                    6,530,037              335,888 145% 61% 4%
Old Mutual Assurance Ghana Limited             259,926,315               229,526,730                  81,022,661                       15,528,273                  45,318,046                       45,318,046           25,965,646                    6,179,527                61,041 126% 40% 6%
Phoenix Life Assurance Company Limited               43,638,556                  29,581,864                  19,599,712                         1,652,692                    9,405,064                         9,206,090             8,000,238                    1,644,337 202% 50% 2%
Prudential Life Insurance Ghana             161,423,825               130,594,235               115,395,681                    114,093,884                  25,784,760                       25,784,760           41,038,004                  29,270,145 150% 62% 9%
Quality Life Assurance Company Limited               59,619,815                  52,844,418                  17,936,279                         6,577,857                  11,216,373                       11,216,373             6,718,861                        722,995 123% 42% 1%
Saham Life Insurance Ghana Limited               23,574,660                  19,784,736                  19,849,550                       12,806,603                    4,978,604                         4,978,604             6,061,518                    3,727,177 439% 76% 2%
SIC Life Insurance Company Limited             716,940,455               622,787,372               354,582,824                    353,973,287               245,094,274                    244,732,597           68,806,707                  20,260,308              171,142 22%
StarLife Assurance Company Limited             692,442,150               605,835,193               260,811,891                    257,367,833                  99,470,744                       99,470,744           46,302,771                  32,539,416              940,614 129% 31% 20%
Vanguard Life Assurance Company Limited                       31,438,595                  20,645,670                  17,458,558                       15,066,304                    9,269,777                         8,231,879             7,388,043                    2,354,395              707,515 296% 65% 1%
Total          3,821,794,402      3,193,558,727      1,648,840,942  1,217,608,891 809,106,220             808,263,474    398,689,070   217,278,729 2,358,085    

 

Unaudited 2019 Financials                 

 

 

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