The Enterprise Insurance Company has recorded a net premium income of 8.7 million Ghana cedis in 2008 as against 7.7 million in the previous year.
The Gross Premium income also rose from 16.5 million Ghana cedis in 2007 to 19.9 million Ghana cedis in 2008, an increase of 20.6 per cent, Mr George Otoo, Managing Director of the company, said on Thursday.
Speaking at the 31st Annual Shareholders General Meeting, Mr Otoo said the company recorded 11,719 new businesses in the year under review culminating in a premium of 6.7 million Ghana Cedis.
That, he said, represented 33.8 per cent of total Gross Premium and an indication of increased sales and market penetration.
"The year 2008 produced virtually no Underwriting profit as claims incurred increased significantly (59.0 per cent) from 2.7 million Ghana Cedis in 2007 to 4.3 million Ghana Cedis.
"Motor account continued to dominate the incidence of claim payment both in terms of frequency and quantum," he added.
Mr Otoo said about 70 per cent of the claims incurred came from the Motor account alone, adding that claims payment is the bedrock of the company's long term survival and profitability and pledged the company's determination to continue to honour genuine claims promptly.
"However, we will continuously review and reset our strategy on the Motor business to address its dwindling profitability in the face of the current intense price competition," he added.
Mr Otoo announced that the company had opened an ultra-modern branch in the Airport Residential Area in pursuance of its objective of making services more accessible to as many clients and potential clients as possible.
The Chairman of the Board of Directors, Mr Trevor Trefgarne, said the company's challenge now was how to maintain the high standards of service to which it aspires.
He said the board had been investigating the best way to structure the group and its subsidiaries for the future and urged the shareholders to approve the vision for the continued growth and profitability of the company.
The company declared an interim dividend of 0.02 Ghana Cedis per a share.