Guinea Insurance Plc has recorded an aggressive increase in its Profit After Tax, PAT for the first quarter of 2021 compared to the amount it recorded the previous quarter. The insurance firm during the period under study saw an increase in profit up by 157 percent to close at N61 million against the N24 million recorded in the last quarter of 2020.
The financial statement filed to the NSE shows that the underwriter’s Gross Premium Written, GPW in the first quarter of 2021 grew by 67 percent to close at N345 million while the GPW for fourth quarter of 2020 was valued at N207 million. Similarly, the gross premium income reached a N295 million in 2021 compared to the previous quarter at N255.
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While the net premium income amounted to N198 million during the period under study, that of the previous year was higher as it was valued at N205 million. However, the investment income only saw a paltry N5.6 million in the first quarter compared to the N47 million which was recorded last year.
The claim expenses and underwriting expenses were valued at N40 million and N81 million respectively in the first quarter of this year while that of the previous year was N89.8 million and N47 million. The reinsurance expenses for the period under study amounted to N97 million compared to the previous quarter’s was N50 million.
The improvement in activities may mean that the underwriter is getting to rebound after it suffers a whopping 71 percent decline in the full year 2020 profit. Meanwhile, Guinea Insurance put it that the pandemic caused minimal damages to the firm as a result of investment in technology.
“The impact of the pandemic is insignificant both financially and otherwise to the continuation of our business operations as there was no impairment to our assets (financial and otherwise), there is no sign of bankruptcy with any of our major customers and none of our operational facilities was shut down, though we operated below capacity in some of our offices in compliance with COVID-19 protocols as directed by the government.
“We leveraged on our investment in information technology to activate our e-Channels and other business portals that ensured our staff were able to work remotely to complement those working at the offices, resulting in the reduction of some overheads. Above all, there is no legal restriction because of the pandemic that will affect the company’s operation,” it said.