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AIICO posts 27% growth in gross premium in Q3

AIICO Insurance Plc has recorded a 27 per cent year-on-year growth in gross premiums written in 2020, from N37 billion in the Third Quarter (Q3) 2019 to N47.2 billion in Q3 2020.

Profit-after-taxes increased 17 per cent year-on-year to N5.2 billion for the interim period ended September 30, 2020 from N4.5 billion in the corresponding period in 2019 while profit before taxes reduced seven per cent year-on-year, from N5.0 billion in Q3 2019 to N4.7 billion in Q3 2020.

The company’s total assets increased by 55 per cent year-to-date to N245.8 billion from N159.5 billion in December 2019 driven by an increase in financial assets, including cash and cash equivalents.

Financial assets increased because of the decline in investment yields and judicious investment of funds received for policies sold. Total liabilities increased 63 per cent to N212.6 billion from N130.6 billion in December 2019 driven mainly by increases in insurance contract liabilities from the decline in yields and reserving for new businesses and fixed income liabilities (3rd party funds under management) in their asset management business.

Total equity also grew 15 per cent year-to-date to N33.2 billion from N28.9 billion in December 2019.

The Managing Director and Chief Executive Officer, Babatunde Fajemirokun said their financial position remains strong, inspiring confidence in their ability to assume the risks their customers wish to transfer.

According to him, the company deployed capital judiciously, generating risk adjusted returns for shareholders, and ensuring that they can continue to keep promises.

He said: “Global and local macroeconomic headwinds continue to test the resilience of our business, and operating models as well as our business continuity plans and the strength of our relationships with our customers and partners. Our 3rd quarter results demonstrate that our business remains steady, despite the changing client preferences and risk exposures that have accompanied the COVID-19 pandemic. We have recorded strong top-line growth year-on-year as well as improved contribution from subsidiaries in our Group, especially our asset management business”, he added.

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