Chairman , Board of Directors Guinea Insurance Plc, Mr. Ugochukwu Godson, says the board and management have unyielding commitment to position the company as an investment destination, this charge was made at its 65th AGM on October 27 at The Providence Hotel, GRA Ikeja.
During his address to the esteemed shareholders where Mr. Godson reaffirmed the unyielding commitment of board and management he assured them that the company’s unwavering dedication to charting a course towards profitability was unwaning.
Reflecting on the financial performance, a retrospective analysis of the year 2022 revealed promising trends for Guinea Insurance PLC. Notable highlights included a modest increase in Gross Premium Written, with a rise to N1.359 billion, representing a 0.22% improvement 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% increase. Net Premium Income also registered substantial expansion, reaching N960 million in 2022, a commendable 9.18% 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% 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%. Notably, Income Tax Expense in 2022 witnessed a significant reduction of 78.40%, decreasing to N7.9 million from the N36.5 million recorded in 2021, owing to the effective tax planning strategies implemented by the company.
In discussing the company’s growth initiatives and development plans, Guinea Insurance PLC’s Chief Executive Officer, Ademola Abidogun, shared the news 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.
