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FX Losses, Rising Expenses Weigh on Guinea Insurance As Profit Plunges By 66%

February 17, 2026
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In 2025, Guinea Insurance was able to up its revenue by 3.20 percent, but the single-digit growth was not enough to save its bottom line from plunging, as expenses and its inability to improve foreign exchange (FX) and investment gains weighed on the insurer’s earnings.

The company’s turnover increased to N2.92 billion last year, compared to the N2.83 billion generated between January and December 2024.

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In the company’s financial statements for the period ended December 31, 2025, the insurer revealed that insurance service expenses grew by 30.86 percent to N1.21 billion, from the N1.76 billion reported in the year before.

Guinea Insurance’s earnings were further impacted by a 1,445.68 percent increase in net expenses on reinsurance contracts, which surged to N426.60 million last year, surpassing the N27.60 million incurred in 2024.

Consequently, the insurer closed the period under review with N1.28 billion, compared to the N1.04 billion profit generated from underwriting activities in 2024, indicating a 22.47 percent increase.

The company improved its earnings with N648.13 million investment income in 2025, which soared by 99.25 percent, from the N325.27 million generated from the same segment in 2024.

However, Guinea Insurance recorded N62.54 million unrealised foreign exchange (FX) loss on fixed deposits last year, failing to replicate the N485,55 million unrealised FX gain on fixed deposits achieved in 2024, while net fair value gains on financial assets at FVTPL increased by 143.39 percent year-on-year, from N16.83 million to N40.96 million.

In addition, the insurer’s fair value gains on investment properties decreased significantly by 73.41 percent to N95 million in 2025, falling below the N357.35 million recorded in the year before.

As a result, the company’s net investment income plunged by 38.34 percent to N721.55 million between the first quarter (Q1) and the fourth quarter (Q4) of 2025, below the N1.17 billion achieved in 2024.

However, the company did not record insurance finance income from insurance and reinsurance contracts issued last year, failing to replicate the N1.37 million and N1.21 million generated in 2024, respectively.

Also, Guinea Insurance reported zero net Insurance finance income or expenses in 2025, compared to the N2.58 million net insurance finance income registered in the year before.

This led to the company’s net insurance and investment result declining by 9.70 percent to N2 billion during the period under review, compared to the N2.22 billion achieved between January and December 2024.

Additionally, the insurer’s other operating income plunged by 71.58 percent year-on-year to N48.01 million in 2025, from the previous year’s N168.97 million, while other operating expenses decreased by 17.89 percent to N1.75 billion, from N1.48 billion.

This further reduced Guinea Insurance’s profit before tax (PBT) by 66.61 percent to N301.90 million last year, failing to achieve the N904.41 million pretax profit reported in 2024.

Out of the profit, the firm paid N15.80 million in taxes during the period under review, compared to the N32.14 million tax credit reported the year before, leading to a 69.45 percent year-on-year decline in Guinea Insurance’s profit after tax (PAT), which dropped from N936.55 million to N286.09 million.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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