GSE To Go Digital

The Ghana Stock Exchange (GSE) is taking steps to change over from the use of paper share certificates to electronic book entries as part of the automation of trading on the Exchange.

This was announced by Mr Trevor Trefgarne, Chairman of the Enterprise Insurance Company Limited, during their Annual General Meeting (AGM) held in Accra yesterday.

Mr Trefgarne emphasised that the Exchange’s Council has decided that with effect from January 2009, all new additional securities being listed should be electronic securities that have been admitted in the GSE security depository.

This transition, he elaborated, will enhance the rate at which securities are placed in the depository as this will make for more efficient and less cumbersome keeping of shareholding records.

In pursuance of this, Council has decided that all listed companies amend their regulations at their next AGMs since this will improve liquidity in the capital market and entreated members to support the proposed amendment.

Mr Trefgarne intimated that the financial performance of the company in 2008 reflects a growth of 20.3%in their general business and 52.0% growth in their life assurance business in their respective revenue generating activities.

He recommended the continued growth of the Enterprise Life Assurance Company (ELAC) in its 7th full year of operation since its inception in 2001.

The Enterprise Insurance Company (EIC), established in the country in 1924, is the first insurance company in Ghana and listed as one of the pioneering companies on the Ghana Stock Exchange.

In 2001, the EIC came together with the African Life Insurance Company and the International Financial Company to set up the Enterprise Life Assurance Company (ELAC) as a life assurance company with a benefit payment policy to settle claims within 48 hours on receiving relevant claims documents.

According to Mr George Otoo, Managing Director of the EIC, there is a significant change in the structure of the insurance industry due to the implementation of the new Insurance Act 724 of 2006.

He said although the Company recorded a substantial increase in gross premium, the frequency and severity of high claims greatly affected its overall operating performance.

The Managing Director, assuring stakeholders, stated that the company will remain focused on building a strong brand name and offering professional services to clients unmatched in the industry.

Mr Otoo thanked the Board of Directors, Stakeholders and Clients for their loyal support and invaluable counsel and guidance over the years.

Source: ISD (Doris Mensah)