Ghana’s Insurance Industry Records 22% Growth in Investment Assets Reaching GHS 10.5 Billion in 2023
The insurance industry saw its investment assets rise 22% to GH₵10.5 billion in 2023, up from GH₵8.6 billion in 2022, as detailed in the Bank of Ghana’s 2023 Financial Stability Report.
The life insurance sector led with GH₵7.0 billion in investment assets by the year-end, eclipsing the GH₵3.5 billion held by the non-life sector.
Despite the overall growth, the industry’s allocation to government securities declined notably as the non-life insurance sector reduced its holdings in government securities by 13%, lowering the share of these assets from 38% in 2022 to 27% in 2023.
The sector instead allocated 23% to fixed deposits, 27% to listed securities, and 19% to investment properties.
The life insurance sector similarly cut its government securities allocation by 9% down to 40% of its portfolio.
Additionally, equity growth in the insurance sector surged 24%, from GH₵4.45 billion in 2022 to GH₵5.52 billion in 2023, a testament to the sector’s financial resilience amid economic volatility.
This increase signals the industry’s readiness to capitalize on emerging opportunities while navigating challenges effectively.
The report also noted a solid Capital Adequacy Ratio (CAR) across the industry and well above the regulatory benchmark of 150%, highlighting the sector’s financial strength.
However, the life insurance segment saw a slight CAR decline, attributed to risk adjustments and the domestic debt exchange programme.
Per the report, the risk adjustments were necessary measures to safeguard the sector’s stability and adaptability to Ghana’s evolving economic landscape.
