AIICO records 26% growth in gross written premium
AIICO Insurance Plc has reported gross written premiums of ₦31.9 billion, representing 26 rise from the same period in 2019 (Q2’19: N25.4bn). The growth was driven by sustained positive performance across the major lines of business of the group.
A statement made available to New Telegraph said the group’s shareholders’ funds increased by 9.39 per cent from N27.9 billion in 2019 to N30.5 billion, driven by the group’s earnings for the period and its strong matching of long term asset and liabilities, despite volatile yields along the yield curve.
However, the group’s profit before tax (PBT) reduced by 28 er cent to N2.17 billion, compared to N3.01 billion in Q2’19.
The reduction was as a result of changes in product mix in the retail life business due to changes in clients’ preferences. These product preferences were, however, impacted by the lower interest yield environment – leading to a 71 er cent increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund).
Mr. Babatunde Fajemirokun, the MD/CEO, speaking on the financial results, stated: “Besides our operational resilience and strategic marketing within the period, our brand equity, advanced level of automation and business continuity plans enabled us to quickly adjust our business model to meet the emerging demands of the low touch economy, triggered by the global pandemic. The strong committed relationship we have built with our customers continue to endear them to us for repeat business, new businesses and referrals.
“As the local and global economies gradually recover from the impact of the pandemic, we will seize opportunities for continuous growth. Our response strategy includes product innovation, technology-enabled operating and distribution models, and unparalleled customer experience. We remain optimistic that the second half of 2020 will be better.”
AIICO’s profitable outcomes amid general uncertainties, challenging macro-economic and highly competitive business environment is a clear indication that it remains an insurer of choice and is well positioned for long-term market leadership.
AIICO Insurance is a leading composite insurer in Nigeria with a track record of serving its clients that dates back over 50 years. Founded in 1963, AIICO provides life and health insurance, general insurance and investment management services as a means to create and protect wealth for individuals, families and corporate customers.