Guinea Insurance has set an ambitious target of generating N1.75 billion in gross premium written in the first quarter of 2025, signaling its intent to significantly boost its revenue in the upcoming year. This projection was disclosed in the company’s forecast income statement for the first quarter, which was filed with the Nigerian Exchange Limited (NGX) at the close of 2024.
Gross premium written refers to the total amount collected by an insurance company from customers for policies during a specified period, calculated before accounting for expenses or commissions. Guinea Insurance’s forecast indicates a strong outlook for the quarter, with net underwriting income expected to reach N1.32 billion, while claims expenses are projected at N180.69 million. The company is also anticipating a profit after tax of N526.73 million by the end of the quarter.
In addition to its underwriting forecast, Guinea Insurance has outlined its cash flow projections, expecting commission received to total N112.88 million. However, the company is forecasting higher commission payments of N262.50 million, reflecting increased costs associated with its operations.
The company’s financial results for the third quarter of 2024 revealed some challenges. Guinea Insurance earned N170.85 million in the quarter, bringing its year-to-date earnings to N267.37 million. However, the company reported a loss of N29.59 million for the quarter and N58.34 million year-to-date, attributed to increases in cost of sales and administrative expenses.
Despite these setbacks, Guinea Insurance is optimistic about its future prospects. At its most recent Annual General Meeting (AGM), Managing Director Ademola Abidogun shared details of the company’s ongoing recapitalisation efforts. Abidogun emphasized the company’s commitment to securing additional funding, enhancing operational efficiency, and expanding its product offerings to strengthen its market position.
“We are focusing on the recapitalisation process to ensure a more robust financial base, which will allow us to better serve our customers and expand our underwriting capabilities,” Abidogun said. He also highlighted the company’s #ComfortAssured Integrated Marketing Campaign, aimed at elevating the Guinea Insurance brand and enhancing its presence in the competitive insurance market.
The chair of the AGM, Mr. Ugochukwu Godson, SAN, commended both the board and management for their dedication to improving the company’s performance. He noted that Guinea Insurance had successfully charted a new strategic direction, fulfilling its commitments and positioning itself for future profitability.
“The company has made significant strides toward returning to profitability, and the board is committed to ensuring Guinea Insurance becomes a prime investment opportunity in the insurance sector,” Godson said.
With its focused approach to recapitalisation and operational enhancements, Guinea Insurance is aiming for a stronger financial performance in 2025, positioning itself as a key player in Nigeria’s insurance industry.
