The underwriting firm, Guinea Insurance Plc recorded a profit of N6.98 million, a recovery after three years of consecutive losses, an analysis by BusinessDay has shown.
The insurance company made its last profit in 2017, the highest in 10 financial years before recording a loss of N190 million, N795 million and N227.6 million in 2018, 2019 and 2020 respectively.
The insurance firm recorded its first profit in four years in 2021 helped by its gross premium which surged 35 percent to N1.35 billion in the year ended 2021 from N1 billion in 2020.
Net premium income means the amount of premium received as reduced by the amount of reinsurance premiums paid during the relevant previous year stood at N898.6 million in December 2021, a 22.4 percent increase from N733.9 million in December 2020.
However, fees and commission dipped by 11.1 percent to N71.5 million from N80.5 million in the year-ago period.
Underwriting income is the difference between an insurance company’s earned premiums and its expenses and claims climbed by just 19.1 per cent to N970 million from N814 million in December 2020.
Furthermore, the underwriting profit increased by 55.2 percent to N580.7 million from N374 million in the comparable periods.
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Profit/ loss before tax stood at N8.2 million compared to the loss of N224.9 million in the previous financial year.
The total assets dipped to N3.4 billion, a 2.8 percent less from N3.5 billion in the comparable financial years.
The company’s investment income recorded a 21.5 percent decrease to N82.2 million, from 104.8 million in the year ended, 2020.
Net cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets recorded a loss of N132.8 million in December 2021 from N167.5 million in December 2020.
Net cash flows from operating activities is a section of a company’s cash flow statement that explains the sources and uses of cash from ongoing regular business activities in a given period. This typically includes net income from the income statement, adjustments to net income, and changes in working capital recorded year on year loss from N231.4 million to N176.3 million in the comparable periods.
In the last three months of 2021(October – December), the company recorded its profit after tax which stood at N1.8 million, compared to a loss of N84.8 million in the same period in 2020.
The company’s investment income grew to N20.7 million in the fourth quarter of 2021, a 21.5 percent increase from N2.5 million in the previous year.
