GNIC, as the first locally incorporated Insurance Company in the Gambia, was established in 1974 which brought up the repealed 1974 Act. Up to 1991, the Company was mainly underwriting Motor Insurance Policies. It was after the privatization that the company started its diversification strategies into other policies such as Fire & Allied Perils; Marine Hull and Cargo; General Accidents such as Burglary, Cash-in-Transit, Public Liability, Contractors’ All Risk Policies.
Addressing the AGM, Alhagie Masamba Jobe, chairman of the new board of GNIC, recalled that the Insurance Act, of 2003 which repealed the 1974 Act, marks a significant milestone in the development of the management and regulation of Insurance businesses in the Gambia.
This Act, he added, has addressed lot of pertinent governance and regulatory issues which today has enhanced the efficient and effective management of Insurance businesses in the country for the benefit of both the Insured (i.e. the policy holders) and the Insurers.
“In the eighties and early nineties, when Socialism ideology was dwindling and Governments around the world realized that “the responsibility of running businesses is not that of Governments but the Private Sector which is the engine of growth” GNIC was then privatized in 1991 with a total subscribed capital of 1,000,100 of D1.00 each consisting of ninety (90) ordinary shareholders with GAIC securing the majority shares which were subsequently transferred to one Dr. Mary Dawo-Snow (represented by Madame Deborah Forster) as the majority shareholder and still the majority.”
Chairman Jobe also reminded that the Central Bank of The Gambia (CBG), in its drive and capacity to regulate the high influx rate of Insurance Companies in the Country amongst other monitory measures under the new Insurance Act, 2003 and the Regulations of 2005; requested that the share capital of Insurance companies be increased to D15 Million on or before 31st March,2007.
“To raise capital in the domestic market to meet the gap for a company that was on the brink of collapsing was not an easy thing that time but thank God, the Company then had more than enough assets in the form of security investments in AGIB Bank and disposable re-valued properties some of which were disposed-off.”
This disposal, he went on, culminated in the floating of additional D4M ordinary shares yielding D2,534,660 generated enough funds not only to meet the minimum requisite D15M share capital but increased it to almost D17M and also disbursed dividend payment of D5 Million which he hope all eligible ninety (90) ordinary shareholders had received their payments.
“Between 2007 and 2015, the Company had been mainly characterized by persistent poor financial performance leading to an accumulated loss of D17, 227,204; attrition rate of Managing Directors was 4 within the period for a private company, the financial liabilities/obligations were unacceptably increasing to the tune of D28,973,304; the oversight body was not only considered ineffective but financially indiscipline. Staff turn-over was high with no hope of survival let alone of operational continuity as a going-concern.”
In view of the precarious financial situation which was further aggravated by the long court case, he said the Board in collaboration with CBG considered the company a non-going concern but decided to give it a last chance and appointed a new Managing Director in the name of Bubacarr Jarju.
“At this time, the challenges faced by the Company were insurmountable but with determination, steadfastness and perseverance, the hurdles are being gradually overcome.”
He maintained that to regain the deteriorating confidence of the Customers, Agents, Brokers, other stake-holders and the general public at large; the Board, Management and staff; working on new formulated policies, guidelines and well-designed strategies, registered a significant increase/growth in its under-written premiums from D8.2M in 2015 to D32.1M and D39.9M in 2020 and 2021 respectively representing an increase of 291.46% and 386.59% respectively.
Financial Performances in 2020 &2021:
Jobe revealed that since the company last convened an AGM in November, 2012 they have chosen the last two audited financial statements ended 31st December, 2020 & 2021 – The reason being they are the latest and the best performance period of GNIC which also marks the turning point of the company after a decade of malfeasance.
He informed that the gross premium income increased from D15.855M in 2016 when the company last reported a profit to D32.144M and D39.902M in 2020 and 2021 respectively representing an increase of 102.7% and 151.7% for 2020 and 2021 respectively resulting to a net profit after tax of D13.625M and D9.009M in 2020 and 2021 respectively.
This magnificent performance with high profitability, he added, has not only eroded the accumulated losses of D17,227,204 to a net retained profit of D5.489M after transferring D2.725M and D1.802M to contingency reserve in 2020 and 2021 respectively in accordance with section 32 (1) of the Insurance Regulations,2005, but also assisted management to clear the long outstanding liabilities of D28,973,304 both as at end December, 2021.
He commended CGB first for the “No Payment No Premium Cover Policy” which he said, has helped Insurance companies in the Gambia a great deal.
“The time spent on chasing for debts are now more effectively, efficiently and economically utilized on other important management operational issues. It also eliminates provisioning for bad & doubtful debts – hence increasing profitability. With the good performance the company recorded in the last two years, so too is the increase of the Net Asset of the company. The Net Asset has increased from D11.156M in 2016 to D30.910M and D39.918M in 2020 and 2021 respectively representing an increase of 177% and 257.8% for 2020 and 2021 respectively. It is also important and note-worthy to report that our total financial investments has increased to D30,813,272 in 2021 from D13,213,448 in 2017.”
Staff welfare:
In every business entity, the management and staff are heavily relied upon to take the company to higher heights and possibly beyond where it is required. So their performance is key and therefore very important.
To address the plight and welfare of the employees, Jobe said the new Board has critically reviewed and amended the organizational structure, the nomenclatures, the salary scale structure and the commensurate allowances and the requisite positions to reflect the true image and functionality of a thriving company such as GNIC in the Insurance Industry.
He also spoke about their drive to further improve staff productivity and motivation, by including in the current year’s budget training for five (5) employees on ICF courses and one (1) on ACCA level 2 all of which are on-going for a better career path and easier succession planning at GNIC.
