Ghana’s Insurance Industry Records 22% Growth in Investment Assets

Ghana’s insurance industry has recorded substantial growth, with investment assets increasing by 22% in 2023. The total value reached GH₵10.5 billion, up from GH₵8.6 billion in 2022, according to the Bank of Ghana’s 2023 Financial Stability Review report. This impressive growth demonstrates the sector’s resilience in navigating challenges such as the COVID-19 pandemic and the domestic debt exchange programme.

The life insurance sub-sector led this growth, with investment assets valued at GH₵7.0 billion as of December 2023, compared to GH₵3.5 billion in the non-life sector. Fixed-income assets remain a common investment strategy across both sectors. However, the share of government securities in investment portfolios has seen a notable decline, likely influenced by the Domestic Debt Exchange Programme (DDEP).

In the non-life insurance sector, holdings in government securities decreased by 13%, reducing their share from 38% in 2022 to 27% in 2023. Fixed deposits now make up 23% of the investment portfolio, with listed securities and investment properties contributing 27% and 19%, respectively. Similarly, the life insurance sector recorded a 9% reduction in government securities, dropping from 49% of its portfolio in 2022 to 40% in 2023. This shift has been accompanied by a rise in other asset classes, with investments in properties growing to 23% and fixed deposits increasing by 8 percentage points to 21%.

These shifts indicate strategic diversification in response to market conditions, positioning the insurance industry for resilience and continued growth. The growth in investment assets and diversification efforts signal the sector’s commitment to adapting to economic dynamics while providing financial stability for policyholders.