Bloomberg News

SIC of Ghana Gains Most in 3 Years on Earnings Bets: Accra Mover

September 26, 2012

SIC Insurance Company Ltd. (SIC), the biggest insurer in Ghana, gained the most in three years as investors speculate profit will increase in the nine months ending this month.

The stock rose 9.7 percent to 34 pesewas at the close in the capital, Accra, the biggest increase since September 2009.

“Investors are taking advantage of the lower price before the release of nine-month results, which will spark demand for the shares,” Xorlali Torsu, a stock trader at Databank Financial Services Ltd. in Accra, said by phone today. “We forecast the company’s profit after tax to increase 15 percent year-on-year.”

SIC began to use business intermediaries to help grow premiums, said Torsu. The method, which sells insurance products directly to consumers, is “more aggressive than what is being done by competitors.”

SIC’s net income grew 15 percent in the first half through June 30 to 7.8 million cedis ($4.1 million). Net premiums increased to 37 million cedis from 32.6 million cedis a year earlier.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net


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