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Tag: Guinea Insurance

  • Guinea Insurance posts 49.4% growth in revenue

    Guinea Insurance posts 49.4% growth in revenue

    Guinea Insurance Plc has reported impressive financial performance in 2023, with a 49.4 per cent increase in insurance revenue, rising to N2.077 billion from N1.390 billion in 2022.

    The Chairman of the company, Mr. Ugochukwu Godson while speaking at the 66th Annual General Meeting (AGM), attributed the growth to improved market penetration; new insurance products tailored to customer needs, and enhanced customer retention efforts.

    Additionally, he said the insurance service result rose by 13.3 per cent, reaching N673.7 million compared to N594.4 million in the previous year, reflecting better risk management and efficient claims handling.

    He stated that investment income and other income surged by 95.4 per cent, from N232.6 million in 2022 to N454.6 million in 2023, due to strategic investments in diversified portfolios.

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    He said: “Operating expenses increased moderately by 8.4 per cent, from N862 million in 2022 to N935 million in 2023, a result of proactive measures to address inflation, technological investments and enhanced operational efficiency.

    “Notably, profit before tax experienced a remarkable turnaround, improving from a loss of N75.4 million in 2022 to a profit of N499.6 million in 2023, marking an impressive 763 per cent increase. Profit after tax also showed significant growth, climbing from a loss of N83.3 million in 2022 to a profit of N477.7 million in 2023, representing a 673.7 per cent increase”.

    The Managing Director/CEO, Mr. Ademola Abidogun, highlighted the company’s ongoing recapitalisation efforts, detailing initiatives to secure additional funding, enhance operational efficiency, and expand product offerings.

    These strategies, according him are part of a vision to elevate the Guinea Insurance brand through the #ComfortAssured Integrated Marketing Campaign. He emphasized that increased funding would enable the company to strengthen its market position, improve customer experience, and deepen its focus on core insurance activities, particularly underwriting.

  • Guinea Insurance launches campaign for customers

    Guinea Insurance launches campaign for customers

    Guinea Insurance Plc has announced the launch of its #ComfortAssured campaign, an integrated marketing initiative to enhance customers engagement and reinforcing the company’s commitment to delivering comprehensive and reliable insurance solutions.

    The insurer said with approvals secured, the campaign is set to increase brand awareness and strengthen relationships with customers.

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    Managing Director/CEO, Guinea Insurance PLC, Mr. Ademola Abidogun, said the company will introduce new products tailored at meeting the needs of  individuals and businesses.

    He said:“We are excited to roll out the #ComfortAssured campaign and bring our message of comfort and assurance to Nigerians nationwide.

     “This marks a significant step in our mission to offer dependable insurance solutions that our customers can rely on. The campaign will be launched across multiple platforms, expanding Guinea Insurance’s reach and presence across the country.’’

  • Guinea Insurance records N2.07b revenue

    Guinea Insurance records N2.07b revenue

    Guinea Insurance Plc reported a 49.4 per cent increase in insurance revenue in 2023, rising from N1.36 billion in 2022 to N2.07 billion.

    The growth, according to the firm, highlights the successful execution of strategic initiatives aimed at expanding market presence and enhancing customer satisfaction.

    Managing Director/CEO, Guinea Insurance, Ademola Abidogun in a statement said the revenue surge reflects Guinea Insurance’s commitment to product diversification, improved customer service, and market expansion.

    Abidogun also said the company recorded a remarkable turnaround in its financial performance, achieving a profit after tax of N477.7 million for FY 2023.

    He stated that this represents a significant rebound from a loss of N83 million in 2022, noting that the turnaround reflects the company’s focus on operational efficiency, cost management and financial discipline.

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    He said: “A substantial 176 per cent increase in claims was incurred, rising from N199.3 million in 2022 to N549.6 million in 2023. This increase underscores the company’s commitment to promptly addressing policyholder claims and enhancing customer support. The rise in claims incurred reflects Guinea Insurance’s robust financial health and capability to meet customer expectations during critical times, reinforcing its reputation as a reliable insurance partner.

    “The company recorded 58.6 per cent improvement in its solvency margin, rising from N2.2 billion in 2022 to N3.49 billion in 2023. This substantial enhancement underscores the company’s financial stability and capacity to meet long-term obligations with increased confidence. The improved solvency margin reflects prudent financial management and strategic planning. Guinea Insurance is well-positioned to seize new growth opportunities, invest in innovative solutions, and continue delivering comprehensive insurance solutions.

    “We also achieved an outstanding 34.4 per cent Profit to Gross Written Premium (GWP) ratio for FY 2023. This achievement reflects effective management of premium income and operational efficiency. The strong performance highlights Guinea Insurance’s ability to convert premium income into substantial profit, showcasing its operational excellence and financial acumen. We reported a phenomenal 673 per cent increase in profit for FY 2023, achieving a 34 per cent profit ratio. This dramatic growth reflects the successful execution of strategic initiatives and operational excellence.’’

  • Guinea Insurance secures N901.4m new equity funds

    Guinea Insurance secures N901.4m new equity funds

    Guinea Insurance Plc has successfully raised N901.4 million in new equity funds to improve its capacity in the underwriting business.

    Regulatory document indicated that Guinea Insurance raised N901.4 million by issuing 1.803 billion ordinary shares of 50 Kobo each to private investors at 50 Kobo per share.

    The additional shares of 1.803 billion ordinary shares that arose from the private placement were added to the shares outstanding in the name of Guinea Insurance on the Nigerian Exchange (NGX), marking the end of the transaction.

    The listing of additional shares increased Guinea Insurance’s total issued and fully paid up share capital from 6.14 billion shares to about 7.943 billion ordinary shares of 50 kobo each.

    The recapitalisation has been a major target of Guinea Insurance, as insurers struggle to beef up their capital base in a new wave of voluntary industry recapitalisation.

    The National Insurance Commission (NAICOM) had been forced to suspend its earlier regulatory recapitalisation agenda, which sought to increase minimum capital requirements for insurance businesses.

    In December 2020, the House of Representatives directed the regulator to suspend the phased recapitalisation programme, citing the economic hardship in the country as a result of the COVID-19  pandemic and the need for increased liquidity to boost growth.

    The lawmakers also alluded to the #ENDSARS protest by the Nigerian youths and the negative impact that the destruction of several properties has inflicted on the insurers. This action creates a Déjà vu scenario relatable to 2018 when a class action by insurance companies’ shareholders resulted in NAICOM canceling a proposed Tier-based recapitalisation.

    In a research report titled ‘Insurance Sector Recapitalisation: Another Dead End?’, market analysts at Afrinvest Securities said the restructuring into holdco by banks may trigger mergers and acquisitions in the insurance industry, especially with the lurking recapitalisation of the insurance sector.

    Analysts said increased mergers and acquisitions are important to consolidate the influence of companies, deepen insurance penetration and enhance the retention of heavy-ticket risks in Nigeria.

     “We expect full holdco structure frenzy to boost banks’ investments in the insurance sector and while this may stifle competition for the industry, it would boost growth and insurance penetration,” Afrinvest stated.

    The report also noted the need for increased collaboration with telecommunication companies and banks as well as micro-insurance to capture value at the retail end of the population.

    Coming from the stunted growth recorded since it contracted 2.9 per cent in 2019, the Nigerian insurance sector recorded a negative 15.3 per cent growth in 2020 according to the National Bureau of Statistics.

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    In terms of global relevance, the Nigerian insurance sector lagged significantly with a total contribution to global premiums at 0.03 per cent as it ranks 63rd of 88 countries profiled by Sigma Research in 2019. Compared with Sub-Saharan peers, the narrative is similar, the sector’s insurance penetration as measured by gross premium written against Gross Domestic Products (GPW/GDP) remains poor at 0.3 per cent with South Africa at 13.4 per cent, Morocco, 3.9 per cent and Kenya , 2.3 per cent, advancing in reach.

    Also, Nigerian insurance sector grapples with low insurance density with GPW per capita of $8.0 compared with South Africa’s $803.0, Morocco’s $127.0 and Kenya’ s $43.0.

     “We advocate that the recapitalisation of the industry remains crucial to replicate growth similar to the banking sector experience,” Afrinvest stated.

    According to the report, although the COVID-19 pandemic fueled lockdowns and resulted in lower premiums from some insurance policies as well as refunds from some auto insurers and escalation of other insured risks, on the bright side, it necessitated the need for fast-paced adoption of technology and digital channels in the industry.

  • NAICOM suspends Guinea Insurance

    The National Insurance Commission (NAICOM) has suspended Guinea Insurance Plc from doing new businesses, it was gathered yesterday.

    Sources within the insurance industry said the suspension took effect from January 29 this year.

    Going forward and until the suspension is lifted, the firm cannot take new businesses except to maintain the existing businesses in its portfolio.

    NAICOM, it was gathered, suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.

    Reinsurance treaty is a backbone of insurance business. It is an agreement between an assuming and ceding company to cede and assume all risks within a class. This protects companies against large risks and in turn enables their claims payment.

    The suspension of the firm is coming when majority of the insurance companies in the industry are doing renewals of insurance businesses.

    Recall that the commission had last year taken steps to take over the company but was restrained from doing so due to some political maneuverings.

  • Guinea Insurance makes N907m in premiums

    Guinea Insurance Plc has  grown its Gross Written Premium by 4.18 per cent from N870 million in 2015 to N907 million in 2016.

    The company’s shareholders’ fund last year was N2.897 billion and N2.899 billion in 2015, representing a marginal drop of 0.08 per cent.

    But its profit before tax grew by 194.64 per cent from N46.9 million in 2015 to N138 million in 2016 while profit after tax grew by 134.87 per cent from N7.2 million loss in 2015 to N2.5 million profit recorded in 2016.

    The directors said they overcame the challenge of solvency margin during the year as the firm’s solvency margin stood at N3 billion in 2016 as against  2015, when the solvency margin was N2.9 billion.

    Guinea Insurance Chairman, Godson Ugochukwu, who made this known during the company’s 59th Annual General Meeting (AGM)  in Kano, reaffirmed the Board’s commitment to growing the company through strategic deployment of its competencies to gain a competitive edge in the marketplace.

    Godson underlined as modest, the financial successes the Board and Management of the company achieved in less than a year, despite the harsh economic weather during the same period.

    On the way forward, he said: “We will focus on building capacity, reposition the brand, build a tribe of loyal customers who will become the company’s brand ambassadors and ultimately transform the company to a world class enterprise.”

    Acting Managing Director, Mrs. Isioma Omoshie-Okokuku, charged the stakeholders to look on the bright side of things.

    ‘’I make bold to say that the newly constituted Board and  Management team of our company have come together as a formidable force to pull out all the stops on our path to success,’’ she said.

  • NSE lifts trading suspension on Guinea Insurance

    The Nigerian Stock Exchange (NSE) has lifted the suspension it placed on Guinea Insurance Plc after the insurance company submitted its long-awaited audited report for last year.

    With the lifting, which took effect from Monday, investors can now trade on the shares and move the share price of the insurance.

    Guinea Insurance was one of the 17 companies suspended for non-submission of their accounts as required by the rules at the Exchange.

    NSE post-listing rules require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. They also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies, including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies including Guinea Insurance use the 12-month Gregorian calendar year as their business year.

    The audited report and accounts for the year ended December 31, 2016 however raised concerns about the going concern status of Guinea Insurance.

    Ernst & Young, the global audit firm, drew attention to the fact that Guinea Insurance’s shareholders fund of N2.9 billion is less than the minimum regulatory capital requirement.

    “These conditions indicate the existence of an uncertainty on the company’s ability to continue as a going concern,” Ernst & Young, the external auditors to Guinea Insurance, stated.

    The board of Guinea Insurance, however, stated that it has approved a new capital raising of N1 billion, which net proceeds will be used to address the shortfall noted by the audit.

    Key extracts of the audited report and accounts of Guinea Insurance for the year ended December 31, 2016 showed that the company has slumped below its nominal value with net asset per share of 46 kobo in 2016 as against 47 kobo in 2015. Total assets dropped from N4.12 billion in 2015 to N3.98 billion in 2016. Shareholders’ funds also slipped from N2.900 billion to N2.897 billion. Gross premium income declined from N1.01 billion in 2015 to N913.37 million in 2016. However, pre-tax profit jumped from N46.91 million to N138.21 million. With taxes also jumping from N54.13 million in 2015 to N136.9 million in 2916, net profit stood at N2.52 million in 2016, still a better performance than net loss of N7.23 million recorded in 2015.

  • Guinea Insurance appoints Omoshie acting MD

    Shareholders of Guinea Insurance Plc have appointed Isioma Omoshie as acting managing director. They also okayed new directors following the exit of the chairman and four directors, who have served for over nine years on the board of the company.

    The company in a statement by the Team Lead, Corporate Communications, Ufot Hanson, said it has positioned itself to go with the tide of structural and operational changes in the industry.

    The  move, the statement said, was to ensure sound business practice and effective compliance with all statutory requirements and the code of good corporate governance as stipulated in section 5.04 (vii) of the 2009 Corporate Governance Code of NAICOM.

    “Consequently, Sir Emeka Offor (Chairman) and four non-Executive Directors: Mr. Fred Udechukwu, HRH Eze Smart Nze, Prof. E.L.C. Nnabuife and Mr. Emeka Agusiobo retired from the board of the company from March 23, the statement said.

    It continued: “The Board also approved the appointments of Mr. Anthony Achebe; Alhaji Hassan Dantata; Simon Bolaji; Chief Osita Chidoka; Mr. Emeka Uzoukwu and Dr. Mohammed Tahir Attahir as non-Executive Directors, while Alhaji A.O. Kadiri was returned as the Independent Director of the company.  Godson Ugochukwu, a lawyer, was also appointed Chairman of the company to replace Sir Emeka Offor.

    “In the same vein, the Board approved the appointment of Isioma Omoshie, the company Secretary/Legal Adviser as the acting MD/CEO until the appointment of a substantive MD/CEO is ratified. This is coming on the heels of the recent resignation of the erstwhile MD/CEO, Mr. Polycarp Didam, who has moved on to pursue other interests.”