Enterprise Group records 37.4% increase in profit — Amidst domestic economic headwinds

The Enterprise Group recorded a net income of GH¢1.602 billion for the 2022 financial year,which represents a 37.4 per cent increase over the previous year’s figure of GH¢1.166.3 billion.

The growth was driven by a 21 per cent increase in net-earned premium in addition to the positive currency impact on investment properties valuation, coupled with other revenue growth from the group’s pensions, funeral and properties businesses.

The group’s profit after tax grew from GH¢122.9 million in 2021 to GH¢223 million in the year under review, on account of the fair value gains on investment properties resulting from currency movement.

In spite of the profit growth, the company’s profit after tax was, however, impacted adversely by a GH¢329 million impairment of government bonds as required by the international accounting standards, resulting from the discounted cash flow of the new bonds to be issued under the Domestic Debt Exchange Programme (DDEP), compared to the carrying value of the old bonds.

Consequently, according to an announcement made last Tuesday by the Board Chairman of the Group, Keli Gadzekpor, at the group’s Annual General Meeting (AGM) in Accra, the Group declared a dividend of GH¢0.0744 per share for 2022, the same as that paid in the previous year.

He explained that the general cost increases experienced in the year also impacted the group’s expenses negatively.

“Our operating companies -Enterprise Life, Enterprise Insurance, Enterprise Trustees, Enterprise Funeral Services, Acacia- have all retained their market positions in their respective industries notwithstanding the difficult operating conditions,” he said.

He said net income without fair value gains grew by 22.6 per cent for the period under review.

“Total expenses went up by 30 per cent over the prior year, driven largely by a 32.94 per cent in claims and benefits and impairment of government bonds on shareholder investment of GH¢64.8 million,” he said.

Investment returns

He said investment income grew by 13.8 per cent from GH¢249.17million to GH¢283.57 million despite the negative returns on the equity market.

“The group delivered an increase in its total assets by 11.98 per cent from GH¢2,163.32 million in 2021 to GH¢2,422.39 million in 2022 despite the impairment of its investment assets by GH¢328.85 million,” said Mr Gadzekpor.

He said that based on the financial metrics, the group was on track to achieve its 2020-2024 financial ambitions contained in the company’s five-year strategy of delivering GH¢2 billion net income by 2024.

Technology solutions 

The board chair disclosed that in 2022, the group built on its previous years’ effort to further increase operational efficiencies and employee productivity.

He said initiatives were executed to increase the ease and convenience with which customers interacted with the Enterprise brand.

“The Advantage Mobile App, our flagship digital customer touchpoint, was markedly improved with various value-adding functionalities directly in response to customer feedback.2022 saw a 15 per cent increase in usage of this touchpoint by Enterprise customers. 2022 also saw significant growth in new business and policy renewals through digital channels,” he said.


Mr Gadzekpor said the group’s outlook for the future remains uncertain and potentially unstable, adding “We believe that in turbulent times like this, our businesses are being called upon to work even harder to deliver peace of mind to our cherished customers and value to our shareholders.”

In view of this, he said the group’s vision for 2023 is executing its strategy and goals of being a great place to work, a trusted partner to its clients and a firm where owners want to invest their time and capital.

SOURCE: GraphicOnline

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