According to the Bank of Ghana’s 2023 Financial Stability Review report, Ghana’s insurance industry saw a significant 22% increase in its investment assets, reaching GH₵10.5 billion in 2023, up from GH₵8.6 billion the previous year.
Ghana’s Insurance industry has successfully navigated through the challenges posed by the COVID-19 pandemic and the domestic debt exchange programme.
The growth was spearheaded by the life insurance sub-sector, which saw its investment assets reach GH₵7.0 billion by December 2023, outpacing the non-life sector’s value of GH₵3.5 billion.
Fixed-income assets continue to be a popular investment choice in both life and non-life sectors.
The decline in government securities in investment portfolios has been attributed to the impact of the Domestic Debt Exchange Programme (DDEP), leading to a noticeable decrease in their share.
Holdings in government securities in the non-life insurance sector decreased by 13% between 2022 and 2023, resulting in a decrease in their share from 38% to 27%.
23% of the investment portfolio is now comprised of fixed deposits, while listed securities and investment properties account for 27% and 19%, respectively.
In contrast, the government securities in the life insurance sector decreased by 9% from 49% of its portfolio in 2022 to 40% in 2023.
Investments in properties have grown to 23% and fixed deposits have increased by 8 percentage points to 21%, alongside a rise in other asset classes.
In response to market conditions, strategic diversification has been implemented by the insurance industry, positioning it for resilience and continued growth.
The sector’s commitment to adapting to economic dynamics is evident in the growth of investment assets and diversification efforts, which are aimed at providing financial stability for policyholders.
