Enterprise Group records GH¢1.16b earnings in 2021

The Enterprise Group PLC, a pioneering Ghanaian insurance company, ended last year with a remarkable performance, increasing its pre tax income by 37 per cent.

The earnings rose from GH¢847.7 million in 2020 to GH¢1.16 billion last year.

The Group Chief Executive Officer (CEO) of Enterprise Group, Mr Keli Gadzekpo, announced this during the 12th Annual General Meeting (AGM) of the Group, held in Accra, an official statement issued to the Ghana News Agency, in Accra, on Thursday said.

The Board of Enterprise Group, at the meeting, recommended a first and final dividend of GH¢0.0744 per share for 2021, an increase of 20 per cent over the 2020 dividend per share paid.

The growth in overall performance, Mr Gadzekpo said, was mainly driven by insurance revenue, which had a 28.78 per cent growth, from GH¢651.39 million in 2020 to GH¢838.71 million in 2021.

Out of this amount, Life Insurance businesses contributed 72.6 per cent, non-Life recorded 22 per cent with Health Insurance recording 5.4 per cent respectively.

He said that funeral services revenue increased by 53 per cent from GH¢10.1 million in 2020 to 15.5 million, while pension fees grew by 29 per cent. He added: “Investment Income increased by 83 per cent and there was Rental Income uplift by 134 per cent.

“However, our underlying Net Profit after Tax was GH¢122.85 million, a decrease of 16 per cent on the previous year’s. This was because of the increase in benefits and claims payments and reserving provisions made during the year”.

Pre-Tax Income refers to the remaining earnings once all operating and non-operating expenses, except for taxes, have been accounted for.

Mr Gadzekpo said there were some digital innovations introduced to improve the conveniences of customers and enhance efficiency of the company.

These, he stated, were the customer feedback system for each operating business, enhancements on the Enterprise Advantage App and an omni-channel platform to present customer facing staff with a single place to access a customer’s communication history with Enterprise Group across the various touch points.

The Group, he said, acquired an operating license from the Insurance Regulator in Nigeria (NAICOM) to start Enterprise Life in that country.

Meanwhile, a bold entry, he explained, was made into the Health Insurance space with the strategic acquisition of Acacia Health Insurance in 2021.

The Group CEO also noted Enterprise Group PLC shares contributed to a growth on the stock exchange market with a 99 per cent growth – from the GH¢1.16 per share at the end of 2020 to GH¢2.79 per share at the end of 2021.

“The increase of 99 per cent in share price exceeded the 24 per cent growth in total assets at the end of the year,” he explained.

As part of its Corporate Social Responsibility (CSR) the Company has made some interventions in the education and health sectors.

These included the commissioning of a newly built and furnished classroom block for the Anglican Junior High School along the High Street of Accra at a cost of GH¢2.5million, donation of two incubators at a cost of $20,000 to the Keta Hospital and GH¢50,000 donation towards polio eradication.

“We will continue to invest and support the communities in areas that will impact and transform their lives,” the group CEO said.

Enterprise Group PLC is the holding company of Enterprise Insurance, Enterprise Life, Enterprise Trustees, Enterprise Properties, Enterprise Funeral Services (Transitions), Acacia Health, Enterprise Life Gambia and Enterprise Life Nigeria.

Source: GNA

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