Politician and business executive, Dr Papa Kwesi Ndoum, is continuing with the expansion of his business empire – the Groupe Ndoum – with the launch of a reinsurance company, the GN Reinsurance Company Limited into the insurance industry.
The company, which is chaired by Dr Ndoum himself and governed by an eight-member board of directors, becomes the second private reinsurance company and third reinsurer in the country.
It adds to Ghana Reinsurance Company (Ghana Re) which is government-owned and Mainstream Reinsurance Company (Mainstream Re), a private reinsurer established a few years ago.
Addressing the launch in Accra, he said the company’s status as a member of the Groupe Ndoum Foundation,made up of businesses in financial, real estate, hospitality, manufacturing and media industries, gave the financial muscle required in the business of reinsurance.
“We are international with operations in USA, Togo and Liberia. Our significant asset base and funds under management make us the pillar of strength the insurance industry needs in Ghana,” Dr Ndoum, who founded the Progressive People’s Party (PPP), said.
The company is starting operations with a minimum capital of GH¢80 million, almost double the amount required of reinsurance companies in the country by the National Insurance Commission (NIC), the regulator of the local insurance company.
The Commissioner of Insurance at NIC, Madam Lydia Laariba Bawah, who launched GN Re, said its entry into the reinsurance business was timely given that Ghana Re and Mainstream Re lacked the needed capacity to reinsure all businesses in the country.
Premiums on life insurance totalled GH¢583 million last year and the commissioner said out of that, only GH¢204 million was reinsured locally.
“My hope and believe is that the coming on board of GN Re will help reduce that capital flight and ensure that the money stays in the country to help grow businesses, the insurance industry and the economy at large,” she said in an interview after the event.
“In some jurisdictions, they have only one but the capacity is often there to retain all the businesses. In our case, we had two and the capacity was still there. Now that GN Re is on board, we will assess the market and see if there is room for another,” she said.
The Chief Executive Officer of GN Re, Mr Joseph Kusi-Teiko, said the company was aiming at becoming “a big player in the insurance industry and a leader in customer service. Our aim is to raise the standard of customer care to a whole new level in the industry”.