The latest NIC Annual Report for 2010 indicates that Vanguard Life Assurance Company Limited was the most cost efficient company with its Management Expense ratio of 21%.
According to the Managing Director, Mrs. Ruth D. Amissah, it was able to achieve this feat because of strict cost and budgetary control measures put in place with the education of staff on the need to eliminate waste of all types.
She also mentioned that the company in its bid to control cost, does not compromise on quality as well as staff concerns since these two factors are critical to making their products affordable to policyholders and returning good value to shareholders.
The industry average ratio for management expenses for the past three years was 47.3% whilst Vanguard Life Assurance has had an average of 24.6% over the same period.
Insurance pundits say for the kind of insurance products Life insurance companies in Ghana underwrite, the only controllable item in the Income Statement for a company to be very profitable is this line item.
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