AIICO Insurance Plc has increased its Profit after Tax (PAT) from N3.2 billion in 2018 to N5.9 billion as at the end of the 2019 financial year. This represents an 88% growth. The insurance company’s gross written premiums for FY 2019 also increased by 33% from N37.7 billion in 2018 to N50.1 billion last year.
AIICO’s profit before tax (PBT) for the period under review stood at N6.2 billion, marking an increment of 78% compared to the N3.5 billion achieved in 2018. Its earnings per share (EPS) also increased by 89% from 44 kobo in 2018 to 83 kobo in 2019.
The company’s performance was predominantly driven by growth across all lines of business within the group. Chief Executive Officer, Babatunde Fajemirokun, explained that in the course of 2019, the company undertook a thorough review of its businesses with a clear aspiration to attain market leadership through profitable growth. Based on the progress made so far, he said:
“It is my belief that we are on course and have the right strategy in place to deliver even more sterling performance in the years ahead.
“In accordance with our commitment to the fulfilment of our obligations to our clients, gross claims grew by 6% from N29.0 billion in 2018 to N30.6 billion in 2019. From this amount, about 75% was for benefits and claims payment in our Life business with the remaining 25% incurred in the Non-Life business.”
READ MORE: Analysis: MTN’s blow out Q1 profit vs Covid-19 headwinds
Following the approval to increase the authorized share capital of the company, AIICO’s shareholders’ equity increased by 92% from N14.5 billion in 2018 to N27.9 billion. This was driven by the successful completion of a private placement investment by LeapFrog Nigeria Insurance Holdings Limited and AIICO Bahamas Nigeria Limited; two strategic investors. Improvements in retained earnings also contributed to this.
The development also led to an upward review of the company’s paid-up share capital, increasing from N6.1 billion to N11.3billion. Plans are underway to raise the outstanding capital by way of a rights issue. According to the company, the new capital injection is expected to strengthen its balance sheet and provide additional capacity to underwrite more risks.
“We are in unprecedented times, and only the bold and agile will survive. That is why AIICO will continue to push boundaries to break new grounds and more importantly, we will keep adapting to change, identifying and introducing innovative ways of working and providing our customers with distinctive experiences. This is the only way to succeed in the long term,” the AIICO boss added.
