SIC Insurance PLC recorded a 27.5 per cent increase in profit after tax to GH¢69.5 million for the year ended December 31, 2025, according to its unaudited financial statements.

Despite the improved profitability, the state-owned insurer reported a significant deterioration in its cash position and extensive boardroom changes during the year.

Cash and bank balances declined by 27 per cent to GH¢85.5 million, down from GH¢117 million in 2024. Net cash generated from operating activities also turned negative, recording an outflow of GH¢28.9 million compared with an inflow of GH¢131.1 million the previous year.

The financial statements were approved by the board in February 2026 and signed by Board Chairman Bernard Ahiafor, MP.

Revenue and shareholder value improve

Insurance revenue rose 7 per cent to GH¢598.5 million from GH¢559.5 million in 2024.

Shareholders’ funds increased to GH¢753.6 million, up from GH¢677.3 million, while earnings per share improved to GH¢0.3554 from GH¢0.2786.

However, net expense from reinsurance contracts held surged by 46 per cent to GH¢201.6 million, compared with GH¢137.7 million in 2024.

By portfolio, fire and theft generated the highest insurance revenue at GH¢210 million, followed by motor at GH¢178 million and bonds at GH¢113.5 million. The fire portfolio, however, recorded a negative insurance service result of GH¢670,689 after reinsurance expenses.

Major board turnover

The report also revealed substantial changes in board composition during 2025, with 14 directors either retiring, resigning, being replaced or newly appointed.

Both the Chairman and Managing Director positions were replaced following the election of a new government. The Managing Director was changed on January 24, 2025, while the Chairman was replaced on June 30, 2025.

Three independent non-executive directors were appointed on November 27, 2025, the same day two independent non-executive directors retired. Two additional independent non-executive directors resigned in June and July 2025.

Company Secretary Cynthia M.E. Rockson confirmed the changes.

In their fourth-quarter report, the directors stated that during the year under review, neither directors nor officers had any interest in third parties responsible for managing the company’s business activities.

Regulatory and financial position

SIC reported a capital adequacy ratio of 262.03 per cent, well above the regulatory minimum requirement of 150 per cent. Its investment-to-assets ratio stood at 72 per cent, exceeding the 55 per cent minimum threshold.

The company confirmed that the financial statements were prepared in accordance with IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), and on a going concern basis.

Corporate social responsibility spending rose to GH¢1.27 million in 2025 from GH¢1 million in 2024, covering education, health, community development, environmental initiatives, sports and festival sponsorships.

Shareholding structure

According to the company’s register of shareholders, the Government of Ghana, through the Ministry of Finance, remains the dominant shareholder with 78.3 million shares, representing 40 per cent.

The Social Security and National Insurance Trust (SSNIT) holds 23.1 million shares, or 11.8 per cent, while Director Daniel Ofori owns 11.6 million shares, representing 5.9 per cent of the company.

While profitability strengthened in 2025, the sharp decline in cash reserves and negative operating cash flow underscore ongoing liquidity pressures facing the insurer.