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Guinea Insurance grows assets amid higher claims pressure
By Taiye Olayemi
Guinea Insurance Plc has recorded a 6.9 per cent increase in total assets to N7.75 billion for the first quarter ended March 31, 2026, reflecting improved investment performance and balance sheet strength.
The company disclosed this in a statement on Friday in Lagos, compared to N7.25 billion recorded in the corresponding period of 2025.
It said the growth was driven by gains in its investment portfolio and asset optimisation strategies, with investment properties rising by 29.5 per cent to N1.11 billion on the back of favourable revaluations.
Guinea Insurance also reported a decline in net expenses on reinsurance contracts to N109.3 million from N174.7 million in the same period of 2025.
The company attributed the reduction to a more conservative risk transfer strategy and strengthened reinsurance cover to mitigate exposure to emerging risks and high-value claims.
However, the insurer recorded a sharp increase in insurance service expenses, which surged by about 803 per cent to N850.1 million from N94.1 million in the corresponding period of 2025.
It explained that the increase was largely due to the settlement of a cluster of high-value claims, which were promptly honoured in line with its commitment to policyholders.
The company noted that the claims impacted earnings and profitability, resulting in a loss for the period.
Commenting, the Managing Director of Guinea Insurance Plc, Mr Ademola Abidogun, said the performance reflected broader industry trends rather than company-specific challenges.
“While the period under review reflects a temporary setback in profitability, it is important to emphasise that the fundamentals of our business remain sound.
“The claims experience recorded is reflective of broader industry trends rather than isolated to Guinea Insurance.
“We made a conscious decision to settle all valid claims promptly, reinforcing our commitment to trust, reliability, and customer confidence.
“We are confident that our strengthened risk management framework, disciplined underwriting approach, and enhanced reinsurance programme will position the company for a strong rebound in subsequent quarters.
“Our focus remains on delivering sustainable value to shareholders while upholding our promise to policyholders,” he said.
Abidogun said the company remained cautiously optimistic about its outlook, adding that management had begun implementing recovery measures, including stricter cost controls, portfolio rebalancing and a renewed focus on more profitable business segments.
He expressed confidence that the measures would support earnings recovery and strengthen the company’s competitive position in the insurance industry. (NAN)
Edited by Kamal Oropo
