By Favour Nnabugwu
Three Ghanaian insurance companies have decided to merge into a new entity called Star Assurance Group Limited (SAGL).
The companies are Société Tunisienne d’Assurances et de Réassurances (STAR) Assurance Company Limited, StarLife Assurance Company Limited and Star Microinsurance Company Limited
Established in September 2020, SAGL intends to play a significant role in the local market.
The written premiums net of cancellations and refunds amounted to 374.76 million TND ($133.767 million) compared to 357.39 million TND ($118.739 million) in 2018, that is an increase of 4.9 percent. With 216.202 million TND ($77.171 million), motor insurance alone accounted for 57.69 percent of the premiums.
The paid losses, all classes of business together, rose by 9.9 percent at 289.872 million TND ($103.467 million) in 2019 against 263.693 million TND ($87.609 million) one year earlier, The number of reported losses (for all classes) fell from 884 686 in 2018 down to 816 527 twelve months later.
For their part, the financial products grew by 26 percent amounting to 77.719 million TND ($27.741 million) versus 61.56 million TND ($20.453 million) 2018.
The privately owned company was incorporated in August 1984 and licensed to carry out corporate and retail insurance business in Ghana. It commenced operations in April 1995.
Star Assurance started business as a composite insurance company and had to hive off its life operations by setting up a subsidiary company, StarLife Assurance even before a new law was enacted in 2006 to separate its life insurance business from the non-life business.
As a result of these structural changes, a new business strategy was implemented. Star Assurance improved its financial status, upgraded its operational infrastructure, improved the skills of its over 150 professionals among others. The business simultaneously further extended its national presence and invested in technology and product distribution to enhance its operations and deepen penetration of insurance products and services to the Ghanaian market.
Star Assurance currently has seventeen (17) branches in seven (7) regional capitals of the country. The insurer also has over 150 agency offices located across the country. As part of their plans to increase penetration of insurance products and services in the market, as well as take insurance closer to the insuring public, Star Assurance is planning to open more branches before the end of the year
Star Assurance is poised to establish itself as a clear market leader in the small and medium-sized enterprises market as it sees Ghana’s large SME sector as a key driver of growth in the industry. The insurer also plans to consolidate its position in the industry through continuous investments in IT infrastructure and human capital.