February 23, (THEWILL) — Guinea Insurance Plc reported a substantial profit decline of 69.4 percent according to its financial statements for the period ending December 31, 2025. Within this time frame, the company’s post-tax profit fell to N286 billion from N936.55 billion in 2024 – a staggering shortfall of N650.45 billion.
An analysis of the financial statements revealed a slight revenue increase of 3.2 percent, rising from N2.83 billion in the previous year to N2.92 billion in 2025. This modest earnings growth resulted in a similarly modest insurance return of 1.28 billion, compared to 1 billion in the same period last year.
The organisation reported a foreign exchange loss of N62.54 billion on fixed deposits, in contrast to the N485.55 billion earned in the previous year, which resulted in a decline of its net investment income to N721.55 billion, compared to N1.17 trillion in the preceding year. This amounted to a N448.73 billion shortfall during the review period.
On the balance sheet side, total assets growth was positive – rising to N7.14 trillion from N6.95 trillion in 2024 which constitutes an increase of N188.3 billion or 2.7 percent.
Earlier signs
The company’s FY 2025 result was preceded by massive diminishing returns in its nine months results as of September 30, 2025, during which it recorded a significant post-tax decline of 93.2 percent. According to its interim Q3 2025 report filed with the Nigerian Exchange (NGX), the profit after tax plunged to N37.65 billion in the nine months of 2025, from N555.32 billion garnered in the equivalent period of 2024.
The development signaled the insurer’s possible return to the era of profit and dividend drought during which the firm trudged on the path of diminishing returns. While the key financial ratios showed strong fundamentals, the shareholders are likely to see another year of no dividend in 2025.
Guinea Insurance posted a loss after tax of N114.7 million in the first half of 2025, compared to a profit of N115.94 million in the same period of 2024 and N936.55 million for the full year 2024.
By this, the 68-year-old insurer launched back into the profit and dividend drought regime it had exited about two years earlier.
Before the landmark exit from the profit drought in 2023, Guinea Insurance had recorded a cumulative five-year post-tax loss of N1.3 billion as of 2022 – a figure above its N1.2 billion market capitalisation at the time. The firm posted the last profit of N251 million in 2017, after which it launched into the ‘Loss Expressway’ that lasted five consecutive years to 2022.
The antecedent, capital raise
The exit from the profit and dividend drought period saw Guinea Insurance bounce into profit, recording profit after tax (PAT) of N477.77 million in 2023, constituting a 673.7 percent gain compared to the loss of N83.27 million in the previous year. The growth trajectory culminated in N936.55 million PAT in FY 2024.
The positive trend came on the heels of the regulatory approval by the National Insurance Commission (NAICOM), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Group (NGX) for Guinea Insurance to proceed with its plan to shore up its capital base.
To strengthen the company on the path of growth the Board of Directors of Guinea Insurance obtained shareholders’ approval to raise up to N15 billion in additional capital. The capital-raising efforts come on the heels of the passage of the Nigerian Insurance Industry Reform Act 2025, which stipulates higher Minimum Capital Requirements for players in the insurance sector.
According to NIIRA 2025, the minimum capital base for non-life insurers has been raised to N15 billion, while the capital requirement for life insurance firms is now at least N10 billion. Reinsurance companies received the steepest increase, with their capital threshold now pegged at N35 billion.
The company recorded a major milestone in its ongoing transformation journey as shareholders approved the company’s recapitalisation and capital raise plan at an Extraordinary General Meeting (EGM) held virtually in Lagos in December 2025.
The meeting, which was conducted in full compliance with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020, attracted strong participation from shareholders, regulators, and other key stakeholders, underscoring broad confidence in the company’s strategic direction.
At the EGM, shareholders approved an increase in the company’s minimum issued share capital from N4.0 billion, comprising 8 billion ordinary shares of 50 kobo each, to N19.0 billion, made up of 38 billion ordinary shares of 50 kobo each. They also endorsed plans to raise up to N15.0 billion in fresh equity through a combination of Rights Issue and Private Placement.
The approvals follow a No-Objection from the National Insurance Commission (NAICOM), signalling regulatory confidence in the Board’s recapitalisation strategy and providing a clear pathway for strengthening the company’s capital base.
Action steps
Speaking at the meeting, Chairman of the Board, Mr. Temitope Borishade, described the shareholders’ approval as a defining moment in the company’s transformation.
“The overwhelming support of our shareholders reflects their confidence in the Board and Management’s strategy to rebuild Guinea Insurance Plc into a stronger, more resilient, and more competitive insurer,” Borishade said. “This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders.”
Following the successful passage of all resolutions, Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue.
The proposed offer, involving 5,295,200,000 ordinary shares at N1.10 per share, is structured on the basis of two new shares for every three existing shares, with a qualification date of January 21, 2026, for eligible shareholders.
The application, submitted through stockbrokers Forte Financial Limited and Mega Equities Limited, is now awaiting regulatory approval and listing by NGX. Upon clearance, transfer agents will dispatch rights circulars and communicate the offer timetable.
The expanded capital structure is expected to not only restore Guinea Insurance’s statutory capital position but also provide the financial headroom required for targeted investments in technology, data-driven underwriting, digital distribution, and service automation.
On the Nigerian Exchange, Guinea Insurance closed its last trading day (Friday, February 20, 2026) at N1.42 per share, recording a 1.4 percent gain over its previous closing price of N1.40. The stock began the year with a share price of N1.33 and has since gained 6.77 percent on that price valuation.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
