Insurance industry posts capital base of GH¢2.91 billion for 2020 – BoG report
Dr Justice Yaw Ofori, NIC Commissioner
Insurance industry capital base hits GH¢2.91 billion
Read full articleThe life and non-life insurance subsectors also gained respectively
The Insurance regulator in Ghana is the National Insurance Commission
The Bank of Ghana has revealed Ghana’s insurance industry witnessed an increase in its total capital base to GH¢2.91 billion at the end of December 2020, from an earlier GH¢2.53 billion recorded in December 2019.
According to the Bank of Ghana Financial Stability Review 2020, the increase amounts to a growth of 15 percent over the previous year.
On the Capital Adequacy Ratio (CAR), which is used to determine the quality of available assets required to meet obligations, the insurance industry recorded 415 percent and 328 percent for the life and non-life insurance subsectors respectively.
This also means that the Capital Adequacy Ratio, for life and non-life insurance industry in the review period surpassed the minimum requirement of 150 percent for the industry.
The BoG report attributed developments in corporate governance practices and stringent measures taken by insurance entities to meet the new minimum capital requirement for the strong results.
Meanwhile, the outlook for the solvency position of insurance institutions however remains positive due to the on-going recapitalisation exercise in the sector.
Read the full report below:
