Guinea insurance posts NGN2.5 million profit for 2016

Sakiru Oyefeso

Guinea Insurance plc reported one of its smallest profit for the full calendar year with NGN2.5 million as net profit but an improvement over NGN7.2 million loss recorded in the full year 2015.

Gross premium income for the full year 2016 fell to NGN913.3 million from NGN1.1 billion recorded in the full year of the financial year 2016.

Total reinsurance expenses for the period rose to NGN263.8 million against NGN252.7 million reported in the previous year.

The insurance recorded NGN649.5 million net premium income for the period in review in contrast to NGN759.1 million reported in the fiscal year 2015 while its net underwriting income for the year was NGN708.1 million against NGN813.2 million recorded in the year before.

Total profit for the year was NGN3.9 billion compared to NGN4.1 billion disclosed as at 2015 while its total liabilities was NGN1.0 billion versus NGN1.2 billion posted in 2015.

Company Information

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.