Prime Business Africa
Guinea Insurance became unprofitable under Ademola Abidogun, the managing director, in 2026.
The company experienced a slow growth in its topline, after revenue grew by 1.69 percent to N718.64 million between January and March 2026, compared to the N706.63 million generated in the first quarter (Q1) of 2025.
Join our WhatsApp ChannelPrime Business Africa (PBA) analysis showed that while revenue grew by a single digit, insurance service expenses rose threefold or 803.23 percent year-on-year, from N94.11 million to N850.1 million.
According to the company’s financial statement for the period ended March 31, 2026, Guinea Insurance recorded a net gain on reinsurance contracts of N109.34 million, compared to the net expense of N174.73 million incurred in Q1 2025.
Consequently, the company, the 16th largest insurer in the insurance industry, suffered a N22.11 million loss in the first quarter of this year, failing to replicate the N437.78 million insurance service result reported in Q1 2025.
The company’s financial woes continued with a 21.54 percent decline in its investment income, which decreased to N121.41 million in Q1 2026, below the N154.75 million recorded in the same period last year.
Also, Guinea Insurance incurred N2.72 million as unrealised foreign exchange loss on fixed deposits in Q1 2026, compared to the zero recorded in the corresponding period in 2025.
This resulted in net investment income declining to N118.68 million during the period under review, compared to the N157.2 million posted in the first quarter of 2025, representing a 21.54 percent decrease.
In addition to the unimpressive earnings of Guinea Insurance, the insurer reported zero insurance finance income or expense from insurance contracts issued in Q1 2026, compared to the N57.42 million expense posted in Q1 2025.
Similarly, Guinea Insurance reported zero insurance finance income or expense from reinsurance contracts held in Q1 2026, failing to achieve the N18.81 million income recorded in the same period last year.
As a result, the insurer recorded zero net insurance finance expenses during the period under review, compared to the N38.60 million posted in the first quarter of 2025.
Additionally, net insurance and investment result plunged to N96.57 million in Q1 2026, below the N556.37 million earned in the corresponding period last year, reflecting an 82.64 percent decline.
Following the poor earnings, Guinea Insurance suffered a N348.01 million loss before tax in Q1 2026, as it was unable to achieve the N135.78 million profit before tax (PBT) recorded in Q1 2025.
This led to the company’s tax expense declining by 15.11 percent year-on-year, from N5.47 million to N4.64 million.
However, the drop in tax was not enough to save Guinea Insurance’s bottom line, as the company recorded a N352.65 million loss after tax in the first quarter of 2026, compared to the N130.31 million profit after tax (PAT) achieved in the same period in 2025.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
