Great Nigeria Insurance rebounds with N2bn profit
Great Nigeria Insurance Plc has reversed the loss of N736m in 2022 to post a profit after tax worth N2bn at the end of 2023.
The financial performance of the insurance firm was disclosed at its 53rd Annual General Meeting held in Lagos recently.
Speaking on the floor of the AGM, the chairman of GNI, Bade Aluko, said that the company had reported a significant financial turnaround for the year 2023, driven largely by exceptional investment income and sector-wide resilience despite severe national economic conditions.
In the year under review, the firm transitioned to the International Financial Reporting Standard 17. The 2022 transiting figure for Insurance Revenue stood at N2.6bn, but it dropped in 2023 by 3.8 per cent to N2.5bn.
The Insurance Service Expense for 2023 stood at N2bn, rising from N1.5bn in the previous year.
In the current reporting year, the company’s Net Investment Income stood at N4.6bn, higher than N1.3bn, indicating a 254 per cent surge in Investment Income. Profit After Tax jumped to N2bn from a loss of N736m in 2022.
Net investment income was highlighted as a key driver of this success, with the report noting, “In the current reporting year, the company’s Net Investment Income stood at N4.6bn as against the 2022 figure, which was N1.9bn.”
The chairman acknowledged the broader macroeconomic context, saying, “Our organisation gallantly thrived through the avalanche of economic woes that swept businesses globally and locally since the unfortunate throes of the pandemic and the Russia/Ukraine war. The ripple effects of the pandemic from 2019, regurgitating all through into 2023, and the harsh economic realities in Nigeria stemming from the reforms of the current administration may have had smattering effects on our operations, but, as has been reflected in our books, we have emerged profitable regardless.”
Looking ahead, Aluko outlined the powerful forces expected to shape the future of the Nigerian insurance industry.
He said, “The future of Nigeria’s insurance industry will likely be shaped by four powerful forces: regulatory upgrades (like IFRS 17), economic reforms, technology adoption, creating both challenges and big opportunities, and the newly signed Nigerian Insurance Industry Reform Act 2025.
“It is expected that IFRS 17 will change the dynamics of insurance performance reporting going forward. The takeaway will be greater transparency and investor confidence. By standardising key assurance measures and reporting performance, IFRS 17 should boost investor trust, attract foreign capital, and help the market compare companies more easily,” he observed.
On NIIRA 2025, the chairman said, “The newly signed NIIRA 2025 has several radical reforms that are mainly targeted at boosting confidence and trust in the insurance industry in Nigeria and ultimately gaining geometrical penetration if keenly executed.” The act “also provided a robust system that will guarantee the financial safety of the insured in case of insolvency while creating a formidable bulwark against insolvency for the insurer.”
He maintained that despite the positive reforms, the industry continues to face significant headwinds stemming from the broader economy: “There are still challenges that could slow growth in the near future if not properly and timely mitigated presently.”
Aluko reassured the shareholders that GNI was committed to sustaining resilience in the face of the market dynamics.
“Great Nigeria Insurance Plc. remains committed to a rigorous pursuit of excellence in our operations as an insurance company. We have maintained a rare display of courage and resilience thus far, and we will continue to give it all it takes to ensure we keep thriving in all our business expressions,” he concluded.
GNI is undergoing a mandatory takeover by Insurance Resourcery and Consultancy Services Limited. Under this arrangement, the company will acquire 500,000,000 ordinary shares in Great Nigeria Insurance Plc at N1.30 per share in accordance with the provisions of Part XII Section 143 (2) of the Investments and Securities Act 2025.
