BY NKECHI NAECHE—–The National Insurance Commission (NAICOM) has approved the 2017 audited financial statements of underwriting firm – Guinea Insurance Plc.
This was disclosed in a statement released by the company on Monday.
The approval was granted after a confirmation that Guinea Insurance had substantially complied with the Commission’s regulatory requirements as stated in its letter dated 11th April 2018 and captioned: Approval for Publication of Year 2017 Audited Financial Statements.
In what could better be described as a continuous streak of good performance, the company recorded a marked shift of positive results as at the year ended December 31, 2017
Gross Premium Written grew by 7% from N906.7 million in 2016 to N967.1 in 2017. Net Premium Income also grew by 15% from N649.5 million in 2016 to N747.1 in 2017. Underwriting Profit grew from N453.4 million recorded in 2016 to N501.1 in 2017 representing a growth rate of 11%. Claims Paid by Guinea Insurance on various classes of insurance decreased by 47% from N304.9 million in 2016 to N161.5 million in 2017, due to operational efficiency in terms of people, processes, technology and communications, the underwriter had said. However, the period under review was characterized by the whole shooting match of the Monetary Policy Committee holding interest rate at a record high of 14% while the Central Bank had kept the monetary policy rate unchanged since July 2016 with the aim of balancing the need to fight inflation and also stabilising the naira in order to support an economy emerging from its worst slump in 25 years. In spite of these headwinds, the underwriter’s Investment Income recorded a marginal decline of 3% from N215.5 in 2016 to N208.3 in 2017. Howbeit, a remarkable performance was delivered as the underwriter posted a Profit Before Tax increase of 35% from N176.3 million in 2016 to N237.8 million in 2017; better still, it recorded a whopping Profit After Tax increase of 518% from N40.6 million in 2016 to N251.0 million in 2017. The underwriter’s zest to be over and done with the challenge of solvency margin, was further consolidated during the year under review as its Solvency Margin grew by 13% from N3.0 billion in 2016 to N3.4 billion in 2017, while increase in Shareholders’ Fund as recorded in its books stood at 16% from N2.9 billion in 2016 to N3.4 billion in 2017.
As evident in Guinea Insurance 2017 Year-end Audited Financial Statements; its Management has been true to its pledge of returning the company on the path of profitability and has further reaffirmed its commitment to continuously deliver values that will positively affect the lives of its stakeholders and leverage best practices.