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Guinea Insurance grows premium by 61%

By Patience Saghana
Guinea Insurance Plc has grown its gross premium income by 61 percent at the end of the financial year ended December 31, 2009. The figure moved from a low N665 million in 2008 to N1.07 billion in the review year, while the underwriting profit increased by 86 percent from N284 million to N529 million in 2009.

The growth in underwriting profit may have been as result of proper risk management, even as claims settlement increased by75 percent indicating the commitment of the company to meet its contractual obligations.

Emeka Offor, Chairman of the company who disclosed this during its Annual General Meeting in Lagos said net operating income grew by 36 percent from N360 million to N565 million. He explained that the fall in percentage is attributable to a fall of 30 percent in investment income and a fall of 93 percent in other incomes, which resulted from the economic slowdown.

The company closed the year with a profit before tax of N19.7million and loss after tax of N13 million.

Shareholder’s however got a dividend pay out of N51 million translating to 1 kobo per share, coming from previous years retained earnings savings which Offor said it’s demonstration to shareholder that the company is interested in their welfare.

Shareholders who could not hold their joy thanked the board for deeming it necessary to give them dividend after many years, pointing out that the new management should work hard to sustain this trend and even improve on it.

He however looks forward to the coming year, stating that as the economy stabilizes with the ongoing reforms in the financial services sector, a lot of foreign investment will come into Nigeria and its impact will positively affect premium generation of insurance companies.

Soji Emiola, managing director and Ekerete Ola Gam-Ikon, executive director, marketing who got appointed recently by the company expressed their determination to take Guinea to the next level.

The said they will focus on creating value and improved customer value, stating that what drive an organization is the people managing it.

According to them, the management is aiming at bringing innovation to the practice of motor insurance, stating that the company is targeting one million motor third party policyholders within the next one year. In doing this, it has entered into contract that will enable verification of every vehicle on the road and ascertain the genuine or not of their insurance.

According to them, there is only one direction the company can go from its present level and that is moving forward, and assured the shareholders that all expectations would be met both in customer service and in returns on investment.


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