Guinea Insurance PLC has announced a significant 49.4 percent growth in its insurance revenue for the financial year 2023, reaching N2.08 billion, up from N1.39 billion in the previous year. This robust performance was disclosed in their statement of profit or loss filed with the Nigerian Exchange Limited. Key factors driving this revenue increase include improved market penetration, the introduction of new insurance products designed specifically for customer needs, and enhanced efforts in customer retention. Additionally, the company’s Insurance Service Result rose by 13.3 percent to N673.7 million, reflecting the effectiveness of better risk management and efficient claims handling strategies.
The financial results also showcased a remarkable increase in Investment Income and Other Income, which saw a substantial rise of 95.4 percent, jumping from N232.6 million in 2022 to N454.6 million in 2023. This growth was attributed to strategic investments in diversified portfolios that have proven fruitful for the company. Operating expenses, on the other hand, increased moderately by 8.4 percent, from N862 million to N935 million, largely due to proactive strategies adopted to address inflationary pressures. The improvements in operational efficiency and technological investments further contributed to managing these expenses, allowing the company to maintain a healthy financial balance despite the overall rise in costs.
Notably, the company marked a significant turnaround in its profitability metrics. Profit Before Tax soared to N499.6 million in 2023 from a loss of N75.4 million the previous year, indicating an impressive increase of 763 percent. Profit After Tax also showed notable growth, climbing from a loss of N83.3 million in 2022 to a profit of N477.7 million, which represents a growth of 673.7 percent. This remarkable recovery highlights the effectiveness of the management’s strategic initiatives and signals a strong return to profitability for the company after facing prior losses.
During the 66th Annual General Meeting held in Lagos, Mr. Ugochukwu Godson, SAN, expressed pride in the commitment exhibited by the board and management, emphasizing their efforts to position Guinea Insurance PLC as a top investment opportunity. He remarked on the company’s successful navigation of challenges and their accomplishment in returning the firm to a profitable state. The meeting served as a platform for the board to communicate the future vision of the company, reflecting on the transformative measures that have been implemented.
Ademola Abidogun, the Managing Director and CEO, elaborated on ongoing recapitalization efforts aimed at securing additional funding, which is essential for enhancing operational efficiency and expanding the company’s product offerings. He asserted that these initiatives form part of a broader vision to elevate the Guinea Insurance brand, particularly through the #ComfortAssured Integrated Marketing Campaign. By increasing financial support, the company intends to solidify its market position and improve customer experience, thereby focusing on core insurance activities, especially in underwriting.
The Annual General Meeting also saw the re-election of several directors, including Simon Bolaji, Hassan Dantata, and Chukwuemeka Uzoukwu, as well as the ratification of new board members, Mrs. Ogonna Orabueze and Mrs. Chioma Okigbo. This reconfiguration of the board aims to align with the company’s strategic objectives and promote a culture of governance that enhances stakeholder confidence. The collective efforts of the management and board are aimed at sustaining the positive momentum observed in the company’s recent performance and ensuring that Guinea Insurance PLC remains an attractive proposition for investors in the insurance industry.
