Yemisi Izuora
Guinea Insurance Plc, has reported a modest increase in Gross Premium Written, GPW, of N1.359 billion, representing a 0.22 per cent improvement in 2022 over the preceding year.
Remarkably, Gross Premium Income exhibited significant growth, surging from N1.34 billion in 2021 to N1.39 billion in 2022, marking an impressive 3.73 per cent increase. Net Premium Income also registered substantial expansion, reaching N960 million in 2022, a commendable 9.18 per cent increase compared to the N879 million reported in 2021.
These noteworthy achievements were attributed to the company’s strategic expansion into new markets, coupled with enhanced underwriting and risk management practices.
Further exemplifying their commitment to policyholders was the efficient claims settlement practices, as evidenced by a remarkable 194.63 per cent increase in Claims Expenses during 2022.
However, Guinea Insurance Plc’s strategic expansion initiatives resulted in substantial upfront expenses, including increased operating costs, capital investments, and research and development expenditures.
These investments had a temporary impact on the company’s financial performance, resulting in a notable increase in Loss After Tax, which rose from N23.4 million in 2021 to N64.7 million in 2022, marking a remarkable surge of 176.50 per cent.
Notably, Income Tax Expense in 2022 witnessed a significant reduction of 78.40 per cent, decreasing to N7.9 million from the N36.5 million recorded in 2021, owing to the effective tax planning strategies implemented by the company.
The Chairman of the Board of Directors, of the firm Mr. Ugochukwu Godson, while addressing the company’s 65th Annual General Meeting (AGM) in Ikeja, Lagos reaffirmed the unyielding commitment of the board and management to positioning Guinea Insurance Plc as an attractive investment destination.
The company’s unwavering dedication to charting a course towards profitability was emphasized.
In discussing the company’s growth initiatives and development plans, Guinea Insurance Plc’s Chief Executive Officer, Ademola Abidogun, disclosed that “Guinea Insurance has listed 1,802,800,000 ordinary shares of 50 Kobo each at 50 Kobo per share on the Nigerian Exchange Limited. The total issued and fully paid-up shares of Guinea Insurance Plc have now increased from 6,140,000,000 to 7,942,800,000 ordinary shares of 50 Kobo each.”
Mr. Abidogun emphasized that this move aligns with the company’s proactive approach to securing future growth, increasing market share, and maximizing returns for investors and partners. He explained, “Guinea Insurance Plc is fully prepared to make the most of this opportunity, with more available funds, to further strengthen our market position, enhance the customer experience, and engage more in the core business of insurance, specifically underwriting, which involves collecting businesses, underwriting businesses, and making profit.”
The 65th Annual General Meeting not only presented a detailed financial review but also illuminated a promising path towards profitability. It showcased Guinea Insurance PLC’s steadfast commitment to its stakeholders and its vision for a prosperous future.