Guinea Insurance rebounds with N477m profit, reversing previous year’s loss
By Esther Agbo
Guinea Insurance Plc has turned around its financial performance, posting a profit after tax of N477.77 million for the 2023 fiscal year, a significant leap from the N83.27 million loss recorded in 2022.
This remarkable turnaround represents a 673.7 percent improvement and signals a return to profitability for the Nigerian insurance firm.
The company’s audited financial statements, recently filed with the Nigeria Exchange Limited, highlight several key factors driving this recovery.
A 49.3 percent increase in insurance contract revenue, which rose to N2.08 billion from N1.39 billion in the previous year, was a major contributor. This growth was fueled by a boost in gross premium income and more effective risk management strategies.
In addition to improved revenue, Guinea Insurance also saw a positive shift in its insurance service results, which grew by 13.4 percent to N673.68 million from N594.39 million last year.
This growth is attributed to the company’s refined underwriting practices and enhanced cost management efforts.
A significant development in the company’s financial health is the shift from a loss of N75.36 million before taxation in 2022 to a profit of N499.65 million in 2023.
This shift underscores the impact of increased insurance revenue and stable investment income on the company’s bottom line.
Despite the rise in profitability, Guinea Insurance faced a higher income tax expense, which increased by 176.4 percent to N21.88 million.
However, this was offset by stable investments, which remained consistent at N102.82 million, and a modest gain in fair value on investment properties.
Fair value gains on investment properties totalled N6.70 million, up from N6.70 million in the previous year. Other operating income stood at N113.61 million, an increase of 0.0 per cent from N113.61 million the previous year.
Operating expenses were slightly lower at N862.12 million, compared to N862.80 million in the previous year, reflecting the company’s continued focus on cost control.
Total assets grew by 22.4 percent to N4.14 billion from N3.37 billion, driven by improved cash flow and financial asset management, further enhancing the company’s financial standing.
Guinea Insurance’s equity also saw a significant increase, rising to N3.50 billion from N2.08 billion, indicating stronger financial health and increased investor confidence.
This follows the company’s recent regulatory approval to issue N1.8 billion in ordinary shares at 50 kobo per unit.
Overall, Guinea Insurance’s 2023 performance marks a pivotal year in its financial recovery, setting the stage for sustained growth and stability in the coming years.
