SIC Insurance PLC recorded a strong improvement in profitability for the six months ended 30 June 2026, with profit after tax rising 42.6% to GH¢31.35 million, compared with GH¢21.99 million in the same period of 2025.

The insurer’s insurance revenue increased by 14.0% to GH¢323.21 million, from GH¢283.57 million a year earlier. Insurance service expenses, meanwhile, declined to GH¢85.20 million from GH¢93.89 million, helping insurance service results before reinsurance rise 25.5% to GH¢238.02 million.

However, the cost of reinsurance increased significantly. Net expenses from reinsurance contracts held rose to GH¢116.78 million from GH¢82.30 million, leaving SIC with an insurance service result of GH¢121.24 million. After insurance finance expenses and income, the company reported a net insurance result of GH¢119.45 million, up from GH¢106.81 million.

Motor Business Records Strong Growth

Motor and fire remained SIC Insurance’s largest revenue-generating business segments.

Motor insurance revenue increased sharply from GH¢70.91 million to GH¢102.92 million, representing growth of about 45%. Fire insurance generated GH¢104.69 million, down from GH¢116.62 million.

Accident insurance revenue climbed to GH¢38.80 million from GH¢22.51 million, while bonds generated GH¢58.63 million. Marine and aviation contributed GH¢14.96 million, with engineering accounting for GH¢3.21 million.

Despite the growth in recognised insurance revenue, gross premium declined to GH¢341.88 million from GH¢372.82 million, a decrease of approximately 8.3%.

Investment Income Helps Lift Profit

SIC also benefited from stronger investment returns during the period. Investment income increased 46.3% to GH¢20.61 million, compared with GH¢14.09 million in 2025.

Interest from bonds contributed GH¢9.19 million, while fixed deposits generated GH¢7.69 million. Other income more than doubled to GH¢16.73 million, from GH¢7.74 million, supported by medical income, sale of stickers, rental income and a GH¢3.80 million gain on exchange.

At the same time, other operating expenses increased 15.9% to GH¢112.00 million. Staff costs alone rose from GH¢51.02 million to GH¢65.47 million.

These movements pushed profit before tax to GH¢44.79 million, up 42.6% from GH¢31.42 million. After corporate tax and the Growth and Sustainability Levy, profit for the period settled at GH¢31.35 million.

Balance Sheet Crosses GH¢1.3 Billion

SIC Insurance’s financial position also strengthened. Total assets increased 16.0% to GH¢1.336 billion, compared with GH¢1.152 billion at the end of the comparable 2025 period.

Shareholders’ funds increased 23.1% to GH¢863.35 million, while total liabilities stood at GH¢472.65 million, up about 4.9%.

Cash and bank balances increased to GH¢106.61 million from GH¢88.57 million, while investments measured at amortised cost increased to GH¢448.11 million from GH¢340.92 million. Long-term investments also rose to GH¢364.34 million from GH¢244.79 million.

Cash generation was particularly strong. SIC recorded GH¢97.37 million in net cash generated from operating activities, compared with a GH¢465,774 operating cash outflow in the corresponding period of 2025.

EPS and Profit Margin Improve

Basic earnings per share increased from GH¢0.1124 to GH¢0.1602, while net assets per share improved from GH¢3.5847 to GH¢4.4129.

The company's net profit margin rose from 7.76% to 9.70%, while its current ratio improved from 0.9656 to 1.3529. Return on shareholders’ funds also increased from 3.14% to 3.63%.

SIC also reported a capital adequacy ratio of 292.76%, comfortably above the regulatory minimum of 150%. Its investment-to-total-assets ratio stood at 78%, also above the regulatory minimum of 55%. The company said no significant event occurred after the reporting date that was likely to affect the financial statements.

No dividend was paid or proposed in the half-year directors’ report.

Overall, SIC Insurance entered the second half of 2026 with stronger profitability, a larger equity base and substantially improved operating cash generation. The main areas for investors to watch will be the decline in gross premiums, rising reinsurance costs and higher operating expenses, even as insurance revenue, investment income and earnings continue to grow.