Enterprise Group Ltd. (EGL) of Ghana, the West African nation’s second-biggest insurer by market value, said profit for the year through December 2011 more than doubled as net premium income increased 45 percent.
Net income climbed to 17.5 million cedis ($10.3 million) from 8.4 million cedis the year before, while net premium income rose to 79.6 million cedis from 54.9 million cedis, it said in a statement published in the Ghanaian Times newspaper today.
The results show the benefits the company derived from merging with two other units in a reorganization two years ago, said Derrick Mensah, a research analyst at Accra-based SIC Financial Services Ltd. Enterprise Insurance Company Ltd., which was listed on the Ghana Stock Exchange, merged with a life and a real-estate business to become Enterprise Group Ltd in August 2010.
The company’s shares were unchanged at 35 pesewas at 12:19 p.m. in Accra, the capital.
The results could prompt demand for the stock and “it should not be a surprise if the price touches 45 pesewas this year,” Mensah said.
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