Ghana Life Insurance Company Limited has put out a robust recapitalisation plan that will uplift the company in the years to come.
The shareholders of Ghana Life Insurance Company Limited have injected new capital into the company to improve its financial position.
The injection of US$2.25million into the company brings the Minimum Capital of the company to GH¢27.9million – well above the current regulatory requirement of GH¢15million.
Dr. Chief Cyril Ajagu, Core Investor of African Alliance PLC (the parent company of Ghana Life Insurance), disclosed this to journalists in Accra yesterday. Dr. Ajagu, who is also the Board Chairman of Ghana Life Insurance said: “The fresh capital injected into Ghana Life will help it to settle all outstanding claims”.
He said the objective of Core Investors is to transform the company into becoming a leading life insurance company in the country.
“Our priority is to help resource Ghana Life Insurance Company Limited and position it to be among the top-three life insurance companies in the country,” Dr Ajagu said.
The Board Chairman of Ghana Life Insurance Company indicated that the shareholders are working assiduously on enabling the company to meet the new minimum requirement of GH¢50million before end of the year.
The National Insurance Commission (NIC), regulator of the insurance industry in Ghana, has given all insurance companies up to December 31, 2021 to meet the new minimum capital requirement of GH¢50million.
The Chairman of African Alliance Insurance PLC, Dr. Anthony Okocha, on his part said the injection of fresh capital into Ghana Life demonstrates the confidence that Core Investors of the company has in the Ghanaian insurance market. He said they will continue to stand solidly behind Ghana Life Insurance Company Limited and resource it to become one of the best insurance companies in the country.
“We are working seriously to ensure that the challenges Ghana Life went through do not occur again,” he said.
The Managing Director and Chief Executive Officer of the African Alliance Insurance PLC, Mrs. Joyce Ojemudia, said 2020 was a difficult year for the Ghanaian and global economies due to the COVID-19 pandemic.
Impacts of the pandemic made customers of insurance companies surrender their policies prematurely, posing financial challenges to the business – hence the need for fresh capital in the company.
Mrs. Ojemudia said technology will be deployed to revamp the company, stressing that: “Going forward, we will re-engineer our processes, systems and structures to make Ghana Life one of the best life insurance companies in the country”.
The Chief Executive Officer of Ghana Life Insurance Company Limited, Sheriff Abudu, said Ghana Life Insurance Company Limited, which has been in operation for 41 years, is a leading life insurance company in the country with a large clientele base.
“Ghana Life Insurance is back. Management of the company will strategise to serve customers better, pay claims promptly, and ensure that the company recaptures its position as one of the best life insurance companies in the country,” he stressed.