· Claims COVID-19 damages minimal to firm
Guinea Insurance Plc has recorded a reversal in profit by 71 percent in the fiscal year 2020. As contained in the company’s financial statement filed to the Nigerian Exchange Group, NXG, the amount represents N567 million losses in comparison to the profit earned the previous year.
The insurer’s gross premium written for the year under study amounted to N1.08 billion while the amount for the previous year was valued at N1.3 billion. The significant gap represents a 16 percent dip in the written premium. Similarly, the gross premium income was valued at N1.05 billion in 2020, indicating a N124 million dip compared to the year 2019.
The decline in income reflects an improved reinsurance and underwriting expenses in 2020. While the former totaled N317 million amid the crisis year, indicating a 16 percent (N44 million) rise, underwriting expenses rose by a trivial 0.20 percent. The 2020 financial statement, however, shows that claim expenses dipped by 39 percent to close at N155 million and the underwriting profit was valued at N374 million, indicating a 13.8 percent decline from the previous year’s.
Investment during the crises fell massively as the investment income valued at N105 million in 2020 signifies half the amount in 2019 at N210 million.
Commenting on the performance for the period, the insurer informed that strategies in line with digitization of products during the pandemic helped it stayed resilient during lockdown. “The COVID-19 pandemic is no longer news to the business world as many companies have adjusted to the initial shock as presented by the pandemic, and Guinea Insurance was not exempted. However, the company was able to implement strategies that allowed it to continue in providing services to its customers through e-Channels with minimum disruption, and less contact in line with the COVID-19 protocols” it said.
Noting that the pandemic has had a meager effect on the firm’s earnings and activities, the insurer noted that this is due to its effort to constantly review the effect of the pandemic and implement measures that will make impacts on both business operations and staffs very minimal.
“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 noted.