Guinea Insurance Plc will not be able to take new businesses except to maintain the existing ones in its portfolio. This is as a result of the suspension placed on the firm by the National Insurance Commission (NAICOM).
NAICOM has suspended Guinea Insurance Plc with effect from Tuesday, January 29, 2019.
According to a report, NAICOM suspended the firm because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.
Guinea Insurance Plc recorded poor financial statements as there was a decline in the company’s price last year (2018).
On Monday, 24, 2018, Guinea Insurance hit a 5–year low of N0.23 on the Nigerian Stock Exchange (NSE) trading session. The stock shed N0.02 or 8%.
Also, its results for 9M 2018 show that gross premium written increased from N759 million in 2017 to N938 million in 2018. The company, however, recorded a loss after tax of N134 million as against a profit after tax of N69 million made in 2017.
From all indications, the firm is very likely to record a loss for the 2018 financial year, as against a profit after tax of N251 million recorded in 2017.
About the company
Guinea Insurance Plc provides insurance services across Nigeria. The Company provides services such as general accident, motor, fire, life and pensions, risk insurance packages and engineering.
Guinea Insurance was established on December 3, 1958. Its overseas shareholders held 51% majority shares before the indigenisation decree of 1976 reversed the holding to 60% Nigerian interest, 40% overseas.
The overseas shareholders divested their 40% holding to existing Nigerian shareholders in 1988, thereby making the company 100% Nigerian. The company was listed on the Nigerian Stock Exchange on January 17, 1991.
Chrome Oil Services Limited owns 45% of the company’s issued share capital. Chrome is ultimately controlled by Emeka Offor.
Guinea Insurance Plc opened at N0.23 on the NSE floor on today ( the first day of trading in February 2019).