Guinea Insurance refutes NAICOM suspension

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Guinea Insurance Plc has debunked a report that the company has been suspended by the National Insurance Commission (NAICOM) from writing new businesses.

The company made this known in a statement issued to the Nigerian Stock Exchange (NSE), signed by the Chairman, Board of Directors, Mr. Godson Ugochukwu stating that Guinea Insurance is currently engaging NAICOM with a view to resolving all attendant issues to the said publication within the shortest possible time.

It was gathered, some media firms on Thursday, January 31, 2019 had reported that NAICOM suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance arrangement, among others.

A reinsurance agreement is a necessity for an insurance business. It is an agreement between an assuming and ceding company to cede and assume all risks within a class. This protects companies against large risks and in turn enables their claims payment.

According to Ugochukwu, “On the basis of this, we are constrained as a company to set the record straight by informing the general public, business associates, shareholders, prospective investors and policyholders that the report posits compelling stand for a rebuttal as the Board of Guinea Insurance Plc had on 15th February 2018 appointed Mr. Babatunde Oshadiya as Managing Director/Chief Executive Officer of the Company and the proposal for his appointment was submitted to NAICOM for approval.

“The said notification captioned Guinea Insurance appoints Oshadiya MD/CEO was uploaded on Nigerian Stock Exchange (NSE) portal and also published in various Nigerian media between March 2 -7, 2018 was published in a press statement.

“Meanwhile, on the reinsurance treaty, there is available and incontrovertible evidence showing that Guinea Insurance Plc has a treaty backup for 2019 packaged by its Lead Reinsurance Broker – Glanvill Enthoven Reinsurance Brokers Limited.

“On 17th December 2018, Glanvill Enthoven Reinsurance Brokers Limited sent the Guinea Insurance Plc 2019 Reinsurance Treaty Cover Notes to the Company; which documents have been duly delivered alongside all contracting signed slips as evident in the acknowledgement letter stamped as “received” by NAICOM on 18th December 2018.

“We are an upwardly mobile company, peopled with skilled professionals, our strength is made manifest in our passion for high standards; the single-minded determination to emerge a world class enterprise and our conscious obligation to meet regulatory deadlines.” He noted.