Chairman's Report

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(B.Sc, MBA) -Chairman



Shareholders, Board Members, Management   and Staff, Ladies and Gentlemen;   I am very pleased to welcome each one of you to the 6th Annual General Meeting of Regency Alliance  Insurance  Ltd and to present  to you the Annual  Report and Financial  Statements  of the company for the year ended  31st December, 2014.


2014 was a difficult year for Ghana's economy.  The overall macroeconomic   conditions   deteriorated   in 2014 which further   fueled government   debt and inflation.  The key factors were a sharp depreciation   of its currency and a weaker pace of economic growth.  Macroeconomic challenges continued   to be driven by the high wage bill and rising interest costs. The fiscal deficit declined only slightly to an estimated 9.4% of GDP in 2014 from 10.4% in 2013. Despite the slight increase in the revenue for the year, interest costs increased to 6.2% of GDP from 4.6% in 2013. The government   continued   to add to its stock of public debt to finance the fiscal deficit.  Ghana's public debt has reached an estimated   67.6% of GDP in 2014 through   borrowing   both domestically   (33.8% of GDP) and externally   (33.2% of GDP).

The real GDP growth  slowed  down  sharply  to an estimated   4.0%  in 2014 from  7.3% in 2013 as domestic activities  were  hampered  by the sharp fall  in the currency and rising  inflation,   which  required  policy tightening. Another   key factor  in the slowdown   of domestic  activities during  the year was the worsened  energy  crises, which was caused by gas supply  volatility   from  Nigeria,  the declined  rainfall  patterns  which  caused water  levels to drop  in the country's  dams, and the effect  of mechanical faults  on some of the  machines  and turbines.

The headline inflation figure was 17% in December 2014 compared to 13.5% at the end of December 2013 following   the price adjustments   in the petroleum   and utilities   as government   removed the subsidies and also, the effect of the sharp depreciation   of the cedi.

In 2014, the cedi was one of the worst currency performers   in the world.  According to Bank of Ghana, it depreciated   31.2% as compared to 14.5% in 2013. This is despite the interventions   that the government   put in the place to try to halt the fall in value of the cedi.


During the year, there was no change in the nature of business of the company.  With  effect from  1st April  2014, however,  the  National  Insurance  Commission's   policy  of ‘No Premium, No Cover' took effect.

Operational   performance   for 2014 is as follows:

In spite  of the  highly  competitive   environment    in the industry  and the added effect  of the 'No  Premium,  No Cover'  policy, we achieved  a gross premium   income  for the year of GHC 12,516,495. This represents a 48.8% increase compared to the 2013 gross premium amount of GHC 8,382,758.

Net premium   income earned after reinsurance increased by 11.0% from GHC 7,034,010 in 2013 to GHC 7,807,504 in 2014·


Profit before tax increased by 143.5% from 2013 to GHC 3,019,621. Similarly, profit after tax increased by 172.1% from 2013 to GHC 2,135,023


As part of efforts to further   grow the company as well as to meet the National Insurance Commission’s   new capitalization requirements   at the end of 2015, the directors   recommend   not to pay a dividend despite the commendable   results achieved.

Corporate   social responsibility

Regency Alliance Insurance prides itself on being a good corporate citizen.  As part of its social responsibility,   we made donations to various institutions   and causes during the year. Examples of such donations were to the Ridge Hospital as well as to the Royal Seed Home Orphanage.

At the  hospital,  Regency settled  medical  bills,  presented gift  items,  bought  drugs and gave cash support  to needy patients  (some of whom  had been detained  due to non- payment  of bills).

At the orphanage, we presented food items including rice, sugar, oil etc. and made a cash donation to the Home.