SIC Insurance PLC delivered a strong financial performance in 2025, supported by higher premium income, improved investment returns and a significant reduction in impairment losses.

The insurance company’s consolidated profit after tax increased by 57.4% to GH¢84.05 million, compared with GH¢53.41 million recorded in 2024. Profit before tax also rose by 41.5%, from GH¢83.21 million to GH¢117.74 million.

At the company level, SIC Insurance recorded profit after tax of GH¢85.21 million, representing a 56.3% increase over the GH¢54.52 million reported in the previous year. Company profit before tax increased to GH¢118.96 million from GH¢84.05 million.

Premium Income Reaches GH¢669 Million

Gross written premium, which represents the total value of insurance policies underwritten before deductions for reinsurance, increased by 32.6% to GH¢669.08 million in 2025, from GH¢504.67 million in 2024.

Insurance revenue grew more moderately by 6.9% to GH¢598.19 million, compared with GH¢559.48 million in the previous year.

Fire insurance was SIC’s largest business segment during the year, generating gross premiums of GH¢261.87 million, an increase of 75.3%.

Motor insurance followed with approximately GH¢184.25 million in premiums, while the bonds business contributed GH¢116.25 million. Accident insurance premiums rose strongly to GH¢76.10 million.

However, marine and aviation premiums declined by 26.2% to GH¢24.23 million, while engineering premiums fell by 26.4% to GH¢6.39 million.

Net Insurance Result Declines

Despite the growth in gross premiums and insurance revenue, SIC’s net insurance result declined by 11.8% to GH¢244.36 million, from GH¢277.02 million in 2024.

The decline was partly linked to higher expenses from reinsurance contracts and a larger negative insurance finance result.

SIC recorded an insurance service result before reinsurance of GH¢441.38 million, but net expenses from reinsurance contracts increased to GH¢178.57 million from GH¢137.72 million. The net insurance finance loss also widened to GH¢18.44 million from GH¢3.31 million.

This means that although SIC sold more insurance policies, the cost of transferring some of those risks to reinsurers and other insurance-related finance expenses reduced the amount retained from its core underwriting operations.

Investment Income Supports Earnings

Investment income provided additional support to the company’s profitability, increasing by 31.3% to GH¢46.47 million from GH¢35.41 million.

The income came from fixed deposits, government securities, bonds, call deposits and dividends. Interest income from bonds contributed GH¢17.07 million, while fixed deposits generated GH¢15.46 million at the company level.

Another important factor behind the profit increase was the reduction in impairment charges. The group’s impairment loss declined to GH¢1.83 million in 2025 from GH¢34.08 million in 2024.

Assets Cross GH¢1.2 Billion

SIC Insurance continued to strengthen its balance sheet during the year.

Consolidated total assets increased by 13.4% to GH¢1.27 billion, compared with GH¢1.12 billion in 2024. Shareholders’ funds grew by 17.3% to GH¢786.28 million from GH¢670.38 million.

At the company level, total assets increased by 14.2% to GH¢1.23 billion, while shareholders’ funds rose to GH¢794.25 million from GH¢677.26 million.

The group’s net asset value per share improved from GH¢3.43 to GH¢4.02, while return on shareholders’ funds increased from 7.97% to 10.69%.

SIC also reported a capital adequacy ratio of 222.68%, comfortably above the regulatory minimum of 150%. Its investment-to-total-assets ratio stood at 73%, above the required 55% threshold.

Earnings Per Share Improves

Consolidated basic earnings per share increased by 57.4% to GH¢0.4296 from GH¢0.2730 in 2024.

At the company level, earnings per share rose to GH¢0.4355 from GH¢0.2786. SIC had 195.65 million issued shares throughout both financial years.

Board Proposes GH¢20 Million Dividend

Following the improved performance, the Board of Directors has recommended a dividend of GH¢0.1022 per share for the 2025 financial year.

The proposed dividend amounts to approximately GH¢20 million and is subject to shareholder approval at the company’s Annual General Meeting.

Based on the reported earnings per share of GH¢0.4296, the proposed dividend represents a consolidated earnings payout ratio of approximately 23.8%.

SIC Sets August Date for AGM

SIC Insurance will hold its 19th Annual General Meeting on Thursday, August 20, 2026, at 11:00 a.m.

The meeting will take place at Wesley Towers, No. 3 Ambassadorial Enclave in Accra, with shareholders also able to participate virtually.

Shareholders will be asked to approve the 2025 financial statements, re-elect directors retiring by rotation, declare the proposed dividend, approve directors’ remuneration and authorise the Board to determine the auditors’ remuneration.

Outlook

SIC Insurance’s 2025 results show a company recording strong premium growth, higher profits, improved investment income and a stronger balance sheet.

The proposed dividend also represents a significant increase in cash returned to shareholders compared with the approximately GH¢10 million dividend recognised in the company’s 2025 accounts for the previous financial year.

However, investors should also pay attention to the 11.8% decline in the net insurance result. The fall suggests that higher reinsurance and insurance finance costs partly offset the growth recorded in premiums.

Overall, SIC ended 2025 with stronger profitability, higher shareholder funds, improved earnings per share and capital levels comfortably above regulatory requirements.