Guinea Insurance Plc has reported a 69 per cent drop in its profit for the year ending December 31, 2024.

According to its financial statement filed on the Nigerian Exchange on Thursday, the insurer posted a profit of N147.6m, down from N477.8m in 2023, reflecting a decline in its profitability over the period.

The decline in profit was attributed to a combination of factors, including rising operating expenses and increased claims.

In its statement, Guinea Insurance disclosed a revenue of N2.84 bn for 2024, marking a 36.5 per cent increase from N2.08 bn in the previous year.

Despite the increase in revenue, the company faced a rise in insurance service expenses, which surged by 62.5 per cent to N1.82 bn, compared to N1.12 bn in 2023.

Furthermore, Guinea Insurance’s investment income grew by 62.5 per cent to N326.7m, compared to N201m in 2023. However, this increase was not enough to offset the higher claims and operating expenses, which led to a drop in profit for the period.

The insurer’s statement also showed a negative cash flow from operating activities, amounting to N497.9m. This marks an improvement from the N507.4m cash outflow recorded in 2023.

On the balance sheet, the company’s cash and cash equivalents stood at N793.5m as of December 31, 2024, a decrease from N1.03bn at the start of the year.

Guinea Insurance’s basic earnings per share stood at 0.91 kobo, down from 1.11 kobo in 2023, reflecting the decline in overall profit.