Guinea Insurance posts NGN7.2 billion for 2015

Equity Assurance

Guinea Insurance PLC has disclosed that it recorded a net loss of NGN7.2 billion for 2015 financial year.

While the result is very much delayed, it is further leaving a sour taste in the mouth of the company’s investors and shareholders.

Gross premium written fell to NGN870 million compared to NGN1 billion declared last year. Guinea Insurance seems to be reducing its loss as its gross premium income for 2015 rose to NGN1 billion compared to NGN867 million recorded in 2014.

What is implausible aspect in the result is that fact that the company spent NGN705 million on management expenses (personnel costs, amortization and administration).

The company has only managed to reduce the cost by about NGN50 million. In 2014, the company disclosed that it spent NGN750 million on management expenses.

Total assets at the end of the year was NGN4.1 billion compared to NGN4.5 billion in the year before. Guinea Insurance still has a strong life line. Total liabilities fell to NGN1,2 billion compared to NGN1,6 billion in 2014.

The company still has a total cash balance of NGN886 million. However, this was depleted to the current figure from NGN1 billion in the year before.

Corporate information (company website)

The history of GUINEA INSURANCE PLC dates back to the year 1948 when British West African Corporation Limited (BEWAC) opened an Insurance Department and became Chief Agents in Nigeria for Legal and General Assurance Society Limited of London. In 1950, the Agency was extended to Norwich Union Fire Insurance Society Limited, United Kingdom. In response to Business Growth and to maximize available opportunities, Legal & General Assurance Society Limited, Norwich Union Fire Insurance Society Limited, Northern Region Development Corporation Limited and British West African Corporation Limited jointly incorporated an insurance Company.

Thus, Guinea Insurance Company Limited became operative from December 3, 1958. The Overseas shareholders held 51% majority shares before the indigenization decree of 1976, reversed the holding to 60% Nigerian interest, 40% overseas. The Overseas Shareholders divested their 40% holding to existing Nigerian Shareholders in 1988 thereby making the Company 100% Nigerian.

After the 2007 Recapitalization exercise in the industry, Guinea Insurance Plc is licensed by the National Insurance Commission (NAICOM) to operate as an Insurer for all classes of General Insurance business. A copy of our new license is enclosed herewith; now, the Company has been fully restructured and repositioned to meet the ever-changing needs of our numerous customers as well as the challenges of the new millennium.

GUINEA INSURANCE PLC is now managed by a crop of highly skilled and committed professionals, driven by modern technology and supported by vibrant and resourceful Board of Directors led by Sir Emeka Offor [KSC]. The company is positioned to provide excellent insurance services of global standard that yield high value-added to our numerous customers.

The Head Office centrally located at 10th Floor, Reinsurance Building, 46 Marina Street, Lagos together with the wide range network of branches spreading all over the country, we are poised to serve you better.

 

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