Harboursandport.com: Lagos - Chairman of Guinea Insurance Plc, Mr. Ugochukwu Godson has reaffirmed the unyielding commitment of the board and management to positioning Guinea Insurance as an attractive investment destination.
Godson made the assertion at the 65th Annual General Meeting, AGM, of the company in Lagos.
While commenting on the financial performance of the company, Godson stated that Gross Premium Written, GWP, increased by 0.22 per cent to N1.359 billion in 2022 from N1.356 recorded the previous year.
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| L-R: Chairman, Guinea Insurance Plc, Mr. Ugochukwu Godson; Managing Director, Guinea Insurance, Mr. Ademola Abidogun at the company's annual general meeting in Lagos. |
The Chairman said: “However, there was a significant increase in Gross Premium Income, rising from N1.34 billion in 2021 to N1.39 billion in 2022, signifying a substantial 3.73% increase.
“The growth in Net Premium Income was also notable, as it increased to N960 million in 2022, representing a 9.18% increase over the N879 million recorded in 2021. This growth was attributed to the company's expansion into new markets, as well as improved underwriting and risk management practices.
“As an indication that the company fulfilled its obligations to policyholders by settling their claims efficiently and effectively, claims expenses in 2022 amounted to N142 million, which is a 194.63% increase over the N48.2 million recorded in 2021.”
According to the Chairman, in order to deliver on its single-minded pursuit of sustainable success and growth, the company evolved and implemented certain expansion plans. It is crucial to note that the company's expansion initiatives were vital, necessitating substantial upfront expenses such as increased operating costs, capital investments, and research and development expenditures.
These factors had a temporary impact on the company's financial performance, leading to a notable increase in the Loss After Tax. Specifically, the Loss After Tax rose from N23.4 million in 2021 to N64.7 million in 2022, accounting for the significant surge of 176.50%. Income Tax Expense in 2022 was N7.9 million, indicating a significant drop of 78.40% compared to the N36.5 million recorded in 2021, as a result of 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.
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