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AIICO Insurance reports N32.1bn gross premium

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AIICO Insurance reports N32.1bn gross premium
  • .To pay shareholders N0.05kobo dividend

 

Foremost underwriting firm, AIICO Insurance Plc, has reported a gross premium of N32.1billion at the end of the financial year ended December 31, 2017. Disclosing this in Lagos, the Managing Director/CEO of the company, Mr. Edwin Igbiti, said that the premium income grew by 19 per cent or N5.03 billion from N27.06 billion for the year ended December 31, 2016. He also proposed a dividend of 5kobo to shareholders of the company, saying the 19 per cent growth was due to improved performance in life business. According to him, “our life business grew 15 per cent from N18.8 billion to N21.6 billion in 2017.

This growth was driven by the increased popularity of our traditional life products. The ordinary life business grew 29 per cent in 2017 to N16.4 billion from N12.8 billion in 2016.” Igbiti, who was represented by the Chief Operating Officer (COO), Tunde Fajemirokun, said growth in the non-life business rose from N7.6 billion in 2016 to N8.7 billion in 2017, representing an increase of N1.1 billion or 15 per cent.

“We have worked to improve our relationships with agents, brokers and various intermediaries this year to improve performance,” he added. While noting that investment and other income rose massively by 92 per cent in 2017 to N15.1 billion from N7.8 billion reported in 2016, he said total comprehensive income was not left out as it increased to a profit of N2.4 billion from a loss position of N655 million reported in 2016.

Total assets grew 19 per cent to N92 billion in 2017 from N77.5 billion in 2016, while total shareholders’ equity also appreciated 25 per cent to N10.9 billion in 2017 from N8.7 billion in 2016. The growth of over N2.2 billion was achieved despite the complete derecognition of deferred tax assets in the company’s balance sheet.

This, he said, translated to a net asset per share (Book value per share) of N1.58k compared to N1.25k in 2016. Speaking further on investment income, he said: “We will continue to pursue an active investment strategy to take advantage of market conditions and improve our investment performance. The relatively low-interest rate environment provided an opportunity for the company to make some gains through trading.

This was responsible for net realised gains of N5.3 billion compared to N336 million in 2016.” He affirmed that the company’s financial position remained robust, and an area of focus for the company and an indicator of “our capacity and strength. Assets remain adequately matched to liabilities and legacy concerns have been appropriately addressed. Value has been created over the last 5 years.

“We experienced significant growth as a company in 2017. We had to significantly increase our capacity and improve our processes to meet up with customer demands. Over the next few years, we have plans to grow our businesses; this means we must invest in technology and people to ensure our processes are more efficient to increase our capacity and improve our processes to meet up with customer demands.

Over the next few years, we have plans to grow our businesses; this means we must invest in technology and people to ensure our processes are more efficient to increase customer service levels,” Igbiti noted.

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