Guinea Insurance Plc has announced a net loss of N114.7 million for the first half of 2025, marking a sharp reversal from the profit of N116.1 million it recorded in the same period of 2024. The loss, reported in the company’s unaudited financial statements filed with the Nigerian Exchange Limited, came despite an increase in insurance revenue and investment income.
According to the financial report, Guinea Insurance generated N1.42 billion in insurance revenue in the first six months of 2025, up from N1.27 billion in the same period last year. This increase in income showed positive growth in the company’s top-line performance. However, the firm’s bottom line suffered due to a significant rise in total expenses, especially those related to reinsurance and underwriting costs.
One of the biggest cost drivers was the net expense on reinsurance contracts, which rose sharply to N408.7 million from N131.4 million in the first half of 2024. This surge in reinsurance costs wiped off the gains recorded from the rise in premium income.
The insurance firm also recorded a boost in investment-related income, which increased by 78 percent. Investment income stood at N278 million, up from N156 million in the same period last year. Additionally, the company earned N20 million from unrealised foreign exchange gains and another N19 million in net fair value gains on financial assets, bringing the total investment-related income to N317.2 million for the period under review.
Despite these gains, the company still reported a negative profit before tax of N106.3 million, compared to a positive figure of N125.7 million in the same period last year. After deducting income tax expenses amounting to N8.5 million, Guinea Insurance closed the half-year period with a net loss of N114.7 million.
Earnings per share (EPS) for the period dropped into the negative zone, standing at -1.44 kobo per share. This is in contrast to the positive EPS of 1.46 kobo reported in the first half of 2024, reflecting the company’s shift from profitability to loss.
Meanwhile, the company’s balance sheet showed some growth. Total assets increased to N6.97 billion as of June 30, 2025, from N5.70 billion recorded in the same period of 2024. This indicates that despite the current financial setback, Guinea Insurance is expanding its asset base. The company’s equity stood at N5.11 billion, while total liabilities amounted to N1.86 billion.
Guinea Insurance Plc, one of Nigeria’s older insurance firms, has faced tough competition and macroeconomic pressures over the years. The recent financial performance highlights the challenges of rising operational costs and market volatility that many Nigerian insurance companies continue to face.
Analysts believe that although the rise in insurance and investment income is a good sign, the company’s inability to control rising costs, especially those related to reinsurance, could weaken investor confidence if not addressed quickly. Stakeholders will be watching closely to see how the company adjusts its expense structure in the coming quarters.
Industry watchers say companies in the insurance sector must find new ways to improve underwriting discipline, manage risk better, and drive cost efficiency. They also point to the need for more digital transformation and customer-focused innovation to stay competitive.
Guinea Insurance is expected to release its audited full-year financials later in the year, which will give more insight into its recovery strategies and future outlook. For now, the company will need to reassure shareholders and customers that it remains financially strong despite the short-term loss.
