GUINEA INSURANCE PLC: STOCK ANALYSIS
OVERVIEW
Guinea Insurance Plc is a key player in the Nigerian insurance industry, offering various insurance products and services, including motor insurance, fire and special perils insurance, marine insurance, and life insurance. Headquartered in Lagos, the company has demonstrated a strong presence in the market, contributing to its solid growth trajectory.
CURRENT STOCK PERFORMANCE:
As of September 23, 2024, the share price of Guinea Insurance Plc (GUINEAINS) stood at ₦0.48, a 2.1% increase from the previous close of ₦0.47. The company began 2024 with a share price of ₦0.29, reflecting a 65.5% gain year-to-date, placing it among the top 24 performers on the Nigerian Stock Exchange (NGX). Over the past month, the stock has also gained 17%, ranking 29th in performance on the NGX.
TRADING ACTIVITY:
In the last three months (June 26 - September 23, 2024), Guinea Insurance Plc has ranked as the 32nd most traded stock on the NGX, with a total trading volume of 168 million shares across 1,737 deals, valued at ₦72.9 million. The average daily trading volume was 2.66 million shares, with the highest volume of 18 million shares recorded on August 13, 2024.
2024 FINANCIAL SUMMARY (AS OF JUNE 30, 2024):
Total Revenue: ₦853.91 million
Total Operating Expenses: ₦571.56 million
Operating Income: ₦282.35 million
Pre-Tax Income: ₦269.01 million
Net Income: ₦264.65 million
Basic Earnings Per Share (EPS): ₦0.03
Outstanding Shares: 7.94 billion
Market Cap: ₦3.81 billion
MARKET POSITION:
Guinea Insurance Plc has shown consistent growth within the Nigerian insurance market, this improvement is a direct result of successful strategies aimed at expanding market presence and boosting customer satisfaction.
KEY FINANCIAL HIGHLIGHTS (2023-2024)
1. Profit Surge: Guinea Insurance Plc posted a profit after tax of ₦477.77 million for the year ending December 31, 2023, marking a significant turnaround from a loss of ₦83.27 million in 2022—a remarkable 673.7% increase.
2. Revenue Growth: The company's insurance contract revenue saw a 49.3% increase, reaching ₦2.08 billion in 2023, compared to ₦1.39 billion in 2022. This growth was driven by higher gross premium income and sound risk management practices.
3. Operating Expenses: Operating expenses slightly declined to ₦862.12 million, compared to ₦862.80 million in the prior year, indicating effective cost management.
4. Balance Sheet Strength:
Total Assets: Increased by 22.4%, reaching ₦4.14 billion, attributed to better management of cash and financial assets.
Equity: Rose to ₦3.50 billion from ₦2.08 billion, reflecting enhanced financial health and boosted investor confidence.
Insurance Contract Liabilities: Totaled ₦2.07 billion, aligned with IFRS 17 adjustments due to heightened business activity.
5. Pre-Tax Income: Improved to ₦499.65 million, a sharp increase from the 2022 loss of ₦75.36 million.
6. Investment and Reserves:
Contingency Reserve: Increased to ₦95.55 million from ₦40.78 million.
Other Operating Income: Stable at ₦113.61 million.
Fair Value Gains on Investment Properties: Remained steady at ₦6.70 million.
SWOT ANALYSIS:
STRENGTHS
Strong Market Presence: A well-established player in the Nigerian insurance industry.
Revenue Growth: 49.4% increase in 2023, highlighting successful strategic efforts.
Financial Stability: Solvency margin improvement by 58.6%, showcasing strong financial health.
Innovative Solutions: Focused on product diversification and customer service enhancements.
WEAKNESSES:
High Claims Ratio: The company faced a 176% increase in claims payments, which could affect profitability if not carefully managed.
Operational Costs: Rising insurance service expenses and reinsurance costs could pose challenges to future profitability.
OPPORTUNITIES:
Market Expansion: Potential for further market penetration within Nigeria and into other African markets.
Technological Integration: Leveraging technology to improve customer experiences and streamline operations.
New Product Development: Launching insurance products tailored to evolving market needs could widen Guinea’s customer base.
THREATS:
Regulatory Changes: Evolving insurance regulations could influence operational costs and profitability.
Economic Instability: Nigeria’s economic fluctuations could affect customer purchasing power and demand for insurance.
Increasing Competition: The growing competition in the insurance industry could challenge market share retention.
RECENT DEVELOPMENTS:
Executive Appointments: The company appointed Mrs. Ogonna Offor-Orabueze as Executive Director Technical and Mrs. Chioma Okigbo as Independent Non-Executive Director in 2024.
Campaign Launch: The #ComfortAssured Campaign was introduced to strengthen customer engagement and promote the company’s service commitment.
Suspension Lifted: The Nigerian Exchange Ltd. (NGX) lifted the suspension on trading of Guinea Insurance shares on August 12, 2024, allowing trading activities to resume.
OVERVIEW
Guinea Insurance Plc is a key player in the Nigerian insurance industry, offering various insurance products and services, including motor insurance, fire and special perils insurance, marine insurance, and life insurance. Headquartered in Lagos, the company has demonstrated a strong presence in the market, contributing to its solid growth trajectory.
CURRENT STOCK PERFORMANCE:
As of September 23, 2024, the share price of Guinea Insurance Plc (GUINEAINS) stood at ₦0.48, a 2.1% increase from the previous close of ₦0.47. The company began 2024 with a share price of ₦0.29, reflecting a 65.5% gain year-to-date, placing it among the top 24 performers on the Nigerian Stock Exchange (NGX). Over the past month, the stock has also gained 17%, ranking 29th in performance on the NGX.
TRADING ACTIVITY:
In the last three months (June 26 - September 23, 2024), Guinea Insurance Plc has ranked as the 32nd most traded stock on the NGX, with a total trading volume of 168 million shares across 1,737 deals, valued at ₦72.9 million. The average daily trading volume was 2.66 million shares, with the highest volume of 18 million shares recorded on August 13, 2024.
2024 FINANCIAL SUMMARY (AS OF JUNE 30, 2024):
Total Revenue: ₦853.91 million
Total Operating Expenses: ₦571.56 million
Operating Income: ₦282.35 million
Pre-Tax Income: ₦269.01 million
Net Income: ₦264.65 million
Basic Earnings Per Share (EPS): ₦0.03
Outstanding Shares: 7.94 billion
Market Cap: ₦3.81 billion
MARKET POSITION:
Guinea Insurance Plc has shown consistent growth within the Nigerian insurance market, this improvement is a direct result of successful strategies aimed at expanding market presence and boosting customer satisfaction.
KEY FINANCIAL HIGHLIGHTS (2023-2024)
1. Profit Surge: Guinea Insurance Plc posted a profit after tax of ₦477.77 million for the year ending December 31, 2023, marking a significant turnaround from a loss of ₦83.27 million in 2022—a remarkable 673.7% increase.
2. Revenue Growth: The company's insurance contract revenue saw a 49.3% increase, reaching ₦2.08 billion in 2023, compared to ₦1.39 billion in 2022. This growth was driven by higher gross premium income and sound risk management practices.
3. Operating Expenses: Operating expenses slightly declined to ₦862.12 million, compared to ₦862.80 million in the prior year, indicating effective cost management.
4. Balance Sheet Strength:
Total Assets: Increased by 22.4%, reaching ₦4.14 billion, attributed to better management of cash and financial assets.
Equity: Rose to ₦3.50 billion from ₦2.08 billion, reflecting enhanced financial health and boosted investor confidence.
Insurance Contract Liabilities: Totaled ₦2.07 billion, aligned with IFRS 17 adjustments due to heightened business activity.
5. Pre-Tax Income: Improved to ₦499.65 million, a sharp increase from the 2022 loss of ₦75.36 million.
6. Investment and Reserves:
Contingency Reserve: Increased to ₦95.55 million from ₦40.78 million.
Other Operating Income: Stable at ₦113.61 million.
Fair Value Gains on Investment Properties: Remained steady at ₦6.70 million.
SWOT ANALYSIS:
STRENGTHS
Strong Market Presence: A well-established player in the Nigerian insurance industry.
Revenue Growth: 49.4% increase in 2023, highlighting successful strategic efforts.
Financial Stability: Solvency margin improvement by 58.6%, showcasing strong financial health.
Innovative Solutions: Focused on product diversification and customer service enhancements.
WEAKNESSES:
High Claims Ratio: The company faced a 176% increase in claims payments, which could affect profitability if not carefully managed.
Operational Costs: Rising insurance service expenses and reinsurance costs could pose challenges to future profitability.
OPPORTUNITIES:
Market Expansion: Potential for further market penetration within Nigeria and into other African markets.
Technological Integration: Leveraging technology to improve customer experiences and streamline operations.
New Product Development: Launching insurance products tailored to evolving market needs could widen Guinea’s customer base.
THREATS:
Regulatory Changes: Evolving insurance regulations could influence operational costs and profitability.
Economic Instability: Nigeria’s economic fluctuations could affect customer purchasing power and demand for insurance.
Increasing Competition: The growing competition in the insurance industry could challenge market share retention.
RECENT DEVELOPMENTS:
Executive Appointments: The company appointed Mrs. Ogonna Offor-Orabueze as Executive Director Technical and Mrs. Chioma Okigbo as Independent Non-Executive Director in 2024.
Campaign Launch: The #ComfortAssured Campaign was introduced to strengthen customer engagement and promote the company’s service commitment.
Suspension Lifted: The Nigerian Exchange Ltd. (NGX) lifted the suspension on trading of Guinea Insurance shares on August 12, 2024, allowing trading activities to resume.