Guinea Insurance reacts to NAICOM's claim

Two weeks after the National Insurance Commission (NAICOM) suspended Guinea Insurance Plc from writing new insurance business, the company has denied the claim, stating the report was false.

The Chairman of the insurance firm, Godson Ugochukwu said the reasons cited as the cause for NAICOM’s decision to bar Guinea from conducting new business were untrue, as the company never delayed appointing a Managing Director, while other issues raised in the past weeks are being resolved with NAICOM.

Reason for suspension

It was earlier reported that Guinea Insurance Plc will not be able to take new businesses except to maintain the existing ones in its portfolio. It was disclosed that NAICOM suspended the firm because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.

Guinea Insurance Plc statement

Ugochukwu in a statement made available to the public, debunked the report of not being able to write new business, stating that Guinea Insurance Plc is still conducting business as usual without any constraint of suspension.

In the statement titled:’’Guinea Debunks News Item: NAICOM Suspends Guinea Insurance”, the chairman said: ‘’Our attention has been drawn to various newspaper publications wherein, it was expressly reported that Guinea has been suspended by the NAICOM from writing new businesses on Thursday, 31 January, 2019.

According to the newspaper reports, “NAICOM, it was gathered, suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.

“On the basis of this, we are constrained as a company to set the record straight by informing the public, business associates, shareholders, prospective investors and policyholders that the report posits compelling stand for a rebuttal as the Board of Guinea had on February 15, 2018 appointed Mr. Babatunde Oshadiya as Managing Director/Chief Executive Officer of the company and the proposal for his appointment was submitted to NAICOM for approval.

“The said notification captioned “Guinea Insurance appoints Oshadiya MD/CEO” was uploaded on Nigerian Stock Exchange (NSE) portal and also published in various media namely: Punch, Business Journal, The Authority Daily, Blueprint, Supernews, Newscorner, The Revealer, Businesstodayonline, Inspenonline etc between March 2 and 7, 2018 was published in a press statement.

“Meanwhile, on the reinsurance treaty, there is available and incontrovertible evidence showing that Guinea Insurance PLC has a treaty backup for 2019 packaged by its Lead Reinsurance Broker – Glanvill Enthoven Reinsurance Brokers Limited. On December 17, 2018, Glanvill Enthoven Reinsurance Brokers Limited sent the Guinea Insurance PLC 2019 Reinsurance Treaty Cover Notes to the company; which documents have been duly delivered alongside all contracting signed slips as evident in the acknowledgement letter stamped as “received” by NAICOM on December 18, 2018.

“The Board and Management of Guinea Insurance PLC is currently engaging NAICOM with a view to resolving all attendant issues to the said publication within the shortest possible time”, he was quoted by the nation

About Guinea Insurance Plc

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.

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