As President’s Family Refuses to Pay Claims for Accident Train
The Enterprise Group PLC, the umbrella organization encompassing Enterprise Insurance, Enterprise Life, Enterprise Trustees, Enterprise Properties, Enterprise Funeral Services (Transitions), Acacia Health, and other entities owned by former Finance Minister, Ken Ofori-Atta, has achieved remarkable financial success.
The insurance titan wrapped up the year 2023 with a remarkable performance, defying Ghana’s economic challenges.
Notably, the Board of Enterprise Group proposed a dividend of GH¢0.095 per share for its stakeholders, marking a significant 30% increase from the previous year. This was disclosed during the 2024 Annual General Meeting (AGM) held in Accra.
Presenting a notable profit before tax of 273 million cedis, compared to 174 million cedis in 2022, the Group also boasted a profit after tax of 193 million cedis, reflecting a substantial 60% year-on-year growth.
In a contrasting scenario, Enterprise Insurance, the insurer for Ghana’s recently acquired Diesel Multiple Unit from Poland, has failed to honor claims to Pesa, the manufacturer, following a crash during testing in Ghana.
Despite Pesa’s efforts to secure payment for the estimated claims necessary for repairs, the insurance company has not fulfilled its obligations.
Pesa’s attempts to schedule meetings with Enterprise Insurance officials have been unsuccessful to date.
However, according to Group Chief Executive Officer (CEO) Daniel Larbi-Tieku, the declared dividend is a testament to the robust financial performance of the previous year.
“We prioritize delivering tangible value to our shareholders by striving to exceed inflationary levels, thereby ensuring genuine dividend growth for them,” he affirmed. Larbi-Tieku noted that their insurance revenue surged by more than 24%, with pension business income expanding by 23% throughout 2023. Acknowledging the impact of the
Domestic Debt Exchange Programme (DDEP) on their operations, the CEO highlighted a mild decline in investment income, a crucial revenue stream. He attributed this contraction to the lower yields of 2023 compared to the previous year.
Nevertheless, Larbi-Tieku expressed optimism, citing a 23% growth in top-line metrics and a commitment to enhancing dividends for stakeholders in the future.
In a parallel development, the Enterprise Group PLC achieved significant milestones in 2021, elevating its pre-tax income by 37%.
The earnings surged from GH₵ 847.7 million in 2020 to GH₵ 1.16 billion in 2021, as unveiled by the Group’s CEO, Mr. Keli Gadzekpo, during the 12th Annual General Meeting in Accra. During the gathering, the Board recommended a first and final dividend of GH₵0.0744 per share for 2021, marking a 20% increase over the previous year.
The boost in overall performance, Gadzekpo asserted, was primarily fueled by a robust 28.78% growth in insurance revenue, climbing from GH₵ 651.39 million in 2020 to GH₵ 838.71 million in 2021.
While the Enterprise Group and its subsidiary Enterprise Insurance continue to post impressive profits, the state-owned insurance entity, State Insurance Company (SIC), struggles.
Due to Ofori-Atta’s close ties to the President as his cousin, the conglomerate has secured lucrative contracts from various public entities like the State Transport Company (STC) and the Electricity Company of Ghana (ECG).
STC’s Managing Director, Nana Akomea, acknowledged in a live interview on 3FM that they are exclusively mandated to engage with Enterprise Insurance, following instructions from their banking partner, the Agricultural Development Bank (ADB).
Many contend that it comes as no surprise that, under his Cousin’s Presidency, the Enterprise Insurance company which was almost bankrupt had become so rich