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Chuks Udo Okonta
Guinea Insurance Plc., recently held its 62nd Annual General Meeting (AGM) virtually in strict compliance with guidelines and directives issued by the Federal Government of Nigeria, State Government, Health Authorities and Regulatory Agencies, as part of efforts aimed at stemming the spread of COVID-19.
While presenting its 2019 Financial Year results to its shareholders at the meeting, the Company as a consequence, posited the dip experienced in the general economy to be the root cause of the declining revenue pool of Nigerian insurance companies. It stated 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. Nonetheless, it recorded modest earnings as Gross Premium Written stood at N1.29 billion in 2019, as against N1.24 billion in 2018, representing an increase of 4.02 per cent. Gross Premium Income decreased by 2.05 per cent from N1.20 billion in 2018 to N1.17 billion in 2019. Net Premium Income also decreased slightly by 0.27 per cent from N904.9 million in 2018 to N902.4 million in 2019.
Due to operational efficiency in terms of people, processes and technology, investment income for the period under review increased considerably by 50.5 per cent, from N139 million in 2018 to N210 million in 2019. Operational Expense of N868.6 million was efficiently managed as it resulted in a savings of about 3% when compared to N904 million reported in 2018.
Amongst many other successes recorded during its 2019 AGM; the Company was able to secure its shareholders approval to appoint BDO Professional Services as External Auditors; re-elect three directors namely: Alhaji Hassan Dantata, Dr. Mohammed Tahir Attahir and Mr. Anthony Achebe who were to retire by rotation
In his remark, the Chairman, Board of Directors, Godson Ugochukwu gave thanks to God for His abounding grace and for the opportunity to participate physically and congregate virtually this year in the discharge oftheir shared responsibilities to the Company in the face of the current global health crisis occasioned by – the Novel Coronavirus (COVID-19) and its attendant global economic consequences. He expressed his heartfelt appreciation to the Company’s shareholders as they continued to keep the faith with Guinea Insurance albeit harsh economic realities.
On steps taken by the Company to meet up with the recapitalisation exercise of NAICOM and to beat the 31 December 2020 and 30 September 2021 deadlines respectively, Godson stated “We are sure not to be left behind, 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.
In a closing remark, Managing Director/Chief Executive Officer, Guinea Insurance, Ademola Abidogun said “it is the intention of our board and management to identify opportunities amidst the COVID-19 pandemic, 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.
“We intend to keep Guinea Insurance PLC as a legacy for several generations to come., our strength is made manifest in our passion for high standards and our single-minded determination to emerge a world class enterprise, one with the scope and economies of scale necessary to drive home our unflinching mandate of returning Guinea Insurance on the path of sustainable profitability,” he said.
