Guinea Insurance looking the way of merger to meet recapitalisation requirement

Underwriting firm, Guinea Insurance Plc says it’s looking the way of merger to consummate the ongoing recapitalisation in the industry as discussions with core investors and partners are ongoing.

Godson Ugochukwu, chairman, Board of Directors who disclosed this at the Company’s 62nd Annual General Meeting (virtual) said steps were being taken to meet the recapitalisation directive of NAICOM and to beat the 31 December 2020 and 30 September 2021 deadlines respectively.

Ugochukwu said “We are sure not to be left behind, as discussions are ongoing and our preparedness has reached an advanced stage but could not be discussed prematurely. We are also looking the way of merger and the Company is in discussion with core investors.

Presenting the 2019 financial said the dip experienced in the general economy was the root cause of declined revenue pool of Nigerian insurance companies, stating that premium payments for the year decreased significantly as in most cases, policies were not renewed for want of disposable income, amongst other economic challenges.

He noted that premium written stood at N1.29 billion in 2019, as against N1.24 billion in 2018, representing an increase of 4.02 percent, while the gross premium income decreased by 2.05 percent from N1.20 billion in 2018 to N1.17 billion in 2019.

Ugochukwu said due to operational efficiency in terms of people, processes and technology, investment income for the period under review increased considerably by 50.5 percent, from N139 million in 2018 to N210 million in 2019, while operational expense of N868.6 million was efficiently managed as it resulted in a savings of about 3 percent when compared to N904 million reported in 2018.

Ademola Abidogun, managing director/ CEO of Guinea Insurance in his remark said “it is the intention of our board and management to identify opportunities amidst the Covid-19 pandemic, as we will continually leverage information communication technology to create veritable and easily accessible platforms that will not only deliver services real- time and in a seamless manner but also, will deliver on the numbers.

“Our longevity as a brand has stood the test of time and the values created over the years are embedded in the loyalty and commitment that we have enjoyed from all stakeholders, the CEO said.