Guinea Insurance Plc, on Tuesday said that it settled a total claim of N142 million in 2022, which indicated 194.63 per cent increase over the N48.2 million recorded in 2021.
The Chairman of Board of Directors, Guinea Insurance, Mr Ugochukwu Godson, said this at the company’s 65th Annual General Meeting (AGM) held in Lagos.
Godson said that the claims settlement was in fulfilment of the insurer’s obligations to policyholders.
He said that the insurance company also recorded a significant increase in its Gross Premium Income, from N1.34 billion in 2021 to N1.39 billion in 2022, which signified 3.73 per cent increase.
The chairman said that the firm’s growth in Net Premium Income was also notable, as it increased to N960 million in 2022, representing 9.18 per cent increase over N879 million recorded in 2021.
He said that in 2022, the company’s Gross Premium Written rose to N1.36 billion, indicating a slight increase of 22 per cent over the N1.36 billion recorded in 2021.
“This growth could be attributed to the company’s expansion into new markets, as well as improved underwriting and risk management practices.
“However, in order to deliver on its single-minded pursuit of sustainable success and growth, the company evolved and implemented certain expansion plans,” he said.
According to him, the company’s expansion initiatives are vital, necessitating substantial upfront expenses such as increased operating costs, capital investments, research and development expenditures.
Godson said that the factors had a temporary impact on the company’s financial performance, leading to a notable increase in the Loss After Tax.
He added that specifically, the loss after tax rose from N23.4 million in 2021 to N64.7 million in 2022, amounting to a significant surge of 176.50 per cent.
The chairman revealed that the income tax expense in 2022 was N7.9 million, showing a significant drop of 78.40 per cent, compared to N36.5 million recorded in 2021.
He attributed this to effective tax planning strategies implemented by the company.
Godson reaffirmed the unwavering commitment of the board and management of the underwriting firm to position the company as an attractive investment company that is charting a course towards profitability.
According to him, the financial performance for the year under review reveals promising trends for Guinea Insurance.
Commenting, the Chief Executive Officer, Guinea Insurance, Mr Ademola Abidogun, said that the underwriter had listed 1,8 billion ordinary shares of 50 Kobo each at 50 Kobo per share on the Nigerian Exchange Ltd. (NGX).
Abidogun said that the total issue and fully paid-up shares of Guinea Insurance Plc had now increased from 6.14 billion to 7.94 billion ordinary shares of 50 Kobo each.
He said that the move aligned with the company’s proactive approach to securing future growth, increased market share and maximised returns for investors and partners.
“Guinea Insurance Plc is fully prepared to make the most of this opportunity, with more available funds to further strengthen our market position and enhance customer experience.
“The underwriter will also engage more in the core business of insurance, specifically underwriting, which involves collecting businesses, underwriting businesses, and making profit,” he said.