Great Nigeria Insurance Plc (GNI) has recorded a strong financial rebound, posting a profit after tax of ₦2 billion for the 2023 financial year. This marks a remarkable turnaround from the ₦736 million loss reported in 2022. The achievement was announced during the company’s 53rd Annual General Meeting (AGM) held recently in Lagos.
Addressing shareholders, Chairman of the Board, Mr. Bade Aluko, described 2023 as a year of recovery and growth for GNI, driven by improved investment performance and the company’s resilience amid difficult economic conditions. He noted that despite inflationary pressures, foreign exchange volatility, and other macroeconomic headwinds, the firm maintained operational discipline and adapted effectively to the evolving business climate.
During the year under review, GNI adopted the International Financial Reporting Standard (IFRS) 17, a significant regulatory transition that altered the framework for insurance revenue reporting. Under this new standard, the company recorded an insurance revenue of ₦2.5 billion in 2023.a slight decline of 3.8% compared to ₦2.6 billion in 2022. Insurance service expenses, however, rose to ₦2 billion, from ₦1.5 billion in the previous year.
One of the major highlights of GNI’s 2023 performance was its impressive net investment income, which surged to ₦4.6 billion, representing a 254% rise compared to ₦1.3 billion in 2022. This sharp increase, according to the company, was the key catalyst behind the profit rebound. Aluko noted that prudent portfolio management and favorable market conditions contributed to the strong investment returns.
He further commended the company’s ability to remain profitable despite global and domestic challenges such as the lingering effects of the COVID-19 pandemic, the Russia-Ukraine conflict, and the impact of Nigeria’s recent economic reforms. “Our organisation has weathered multiple economic storms, yet we have emerged stronger. The resilience we demonstrated is reflected in our financial statements,” Aluko stated.
Looking ahead, the chairman highlighted key trends expected to shape the future of the Nigerian insurance landscape. These include regulatory transformation through IFRS 17, economic reforms, technological advancement, and the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Aluko explained that the adoption of IFRS 17 will enhance transparency and improve investor confidence by standardising how insurers report their financial performance. He expressed optimism that these regulatory changes would attract more foreign capital and allow easier comparison among insurance companies.
On the NIIRA 2025, he noted that the law introduces bold reforms aimed at restoring trust and increasing insurance penetration in Nigeria. The Act also strengthens financial safeguards for policyholders and creates mechanisms to prevent insolvency among insurers.
While acknowledging the positive policy environment, Aluko cautioned that persistent macroeconomic challenges,such as inflation, exchange rate instability, and low disposable income,could still pose risks to industry growth if not properly addressed. Nonetheless, he assured shareholders of GNI’s determination to remain adaptable and forward-looking.
“We will continue to pursue operational excellence and innovation while strengthening our risk management framework,” he said. “Our focus remains on delivering sustainable value to shareholders and maintaining our leadership position within the Nigerian insurance market.”
In a related development, GNI is currently the subject of a mandatory takeover by Insurance Resourcery and Consultancy Services Limited, which plans to acquire 500 million ordinary shares of the company at ₦1.30 per share under the provisions of the Investments and Securities Act 2025.
With a renewed strategic direction, improved profitability, and a stronger capital structure, Great Nigeria Insurance Plc enters 2024 positioned for continued growth and long-term success in Nigeria’s evolving financial landscape.
