By Rukayat Adeyemi
Lagos, Aug. 24, 2020 Guinea Insurance plc on Monday said it recorded a modest earnings of N1.29 billion in 2019 as its Gross Premium Written (GPW) as against N1.24 billion in 2018, representing an increase of 4.02 per cent.
Mr Ufot Hanson, Team Lead, Corporate Communication of the firm, disclosed this in a statement on the outcome of the company’s 62nd virtual Annual General Meeting (AGM) held in Lagos.
Hanson said the insurance company’s Gross Premium Income decreased by 2.05 per cent from N1.20 billion in 2018 to N1.17 billion in 2019.
He stated that the Net Premium Income also decreased slightly by 0.2 7 per cent from N904.9 million in 2018 to N902.4 million in 2019.
According to him, investment income for the period under review increased considerably by 50.5 per cent from N139 million in 2018 to N210 million in 2019.
This, he said, was due to operational efficiency in terms of people, processes and technology.
“Operational expenses of N868.6 million was efficiently managed as it resulted in a savings of about three per cent when compared to N904 million reported in 2018.
” Premium payments for the year decreased significantly, as in most cases, policies were not renewed for want of disposable income, amongst other economic challenges.
“The dip experienced in the general economy is the root cause of the declining revenue pool of Nigerian insurance companies, ” he said.
The company’s spokeman noted that the firm, at the AGM, was able to secure its shareholders’ approval to appoint BDO Professional services as its external auditors.
Hanson said the company also re-elected three directors — Alhaji Hassan Dantata, Dr Mohammed Attahir and Mr Anthony Achebe –who were to retire by rotation.
In his remarks, the firm’s Chairman, Board of Directors, Mr Godson Ugochukwu, appreciated the company’s shareholders as they continued to keep faith with it, albeit harsh economic realities.
On steps taken by the company to meet the National Insurance Commision (NAICOM) Dec. 31 and Sept. 30, 2021 recapitalistion deadline, Ugochukwu assured that discussions were ongoing and preparedness had reached an advanced stage.
“We are also looking the way of merger and the company is in discussion with core investors,” he said.
The company’s Managing Director/Chief Executive Officer, Mr Ademola Abidogun, said that the intention of the board and management was to identify opportunities amid the COVID-19 pandemic.
Abidogun said the firm would continually leverage on Information Communication Technology to create veritable and easily accessible platforms that will not only deliver services real-time and in a seamless manner, but will also deliver on the numbers.
“Our longevity as a brand has stood the test of time, and the values created over the years are embedded in the loyalty and commitment that we have enjoyed from all stakeholders.
“We intend to keep Guinea Insurance plc as a legacy for several generations to come.
“Our strength is made manifest in our passion for high standards and our single-minded determination to emerge a world class enterprise.
” One with the scope and economies of scale necessary to drive home our unflinching mandate of returning the firm on the path of sustainable profitability,” the managing director said.