The capital injection to the company brings the minimum capital of the company to GHC27.9 million (US$4.84m), well above the current regulatory requirement of GHC15 million (US$2.60m).
Dr Chief Cyril Ajagu, Core Investor of African Alliance PLC (the parent company of Ghana Life Insurance) and the Board Chairman of Ghana Life Insurance, said that the fresh capital injected into Ghana Life will help it to settle all outstanding claims.
He said the objective of the Core Investors was to transform the company to become a leading life insurance company in the country.
The Board Chairman of Ghana Life Insurance Company indicated that the shareholders were working assiduously to enable the company to meet the new minimum requirement of GHC50 million (US$8.67m) before the end of the year.
“The management of the company will ensure that the company recaptures its position as one of the best life insurance companies in the country.”Sheriff Abudu – CEO, Ghana Life Insurance Company Limited
The National Insurance Commission (NIC), the 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 GHC50 million (US$8.67m).
The Chairman of African Alliance Insurance PLC, Dr Anthony Okocha, on his part said the injection of fresh capital into Ghana Life demonstrated the confidence that the Core Investors of the company had in the Ghanaian insurance market.
“We are working seriously to ensure that the challenges Ghana Life went through did 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 the global economies due to the COVID-19 pandemic.
She said the impact of the pandemic made customers of insurance companies to surrender their policies prematurely, posing financial challenges to the business, and hence the need for the fresh capital in the company.
Mrs Ojemudia said technology would 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. The management of the company would 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 said.