AIICO Insurance Plc has said that it is targeting to achieve N63.33 billion gross written premium (GWP) for the third quarter ending September 2022.
In its Forecast Profit and Loss Accounts Information for the Q3 earnings obtained from the Nigerian Exchange Limited (NGX), the insurance firm also projected N2.99 billion as profit after tax and N3.18 billion as profit before tax for the period.
AXA-Mansard’s projection for net premium income stood at N51.94 billion while Net Claims incurred was N34.09 billion.
AIICO Insurance posted a N5.2 billion profit for the first quarter of the year 2022, a whopping 441% increase from the N0.96 billion it reported same period last year.
A cursory analysis of the data shows that the significant profit recorded was on the back of the impressive performance on investment and other income, as the company rallied from a negative record in the first quarter of last year to a positive record this year.
The profit record is despite the presence of double-digit inflation as the company increased its other expenses by over 100% during the period.
AIICO Insurance saw its Gross premium written valued at N25 billion in the first quarter of 2022. The amount is 25% high compared to the N20 billion in the same period last year while its gross premium income also recorded an increase of 17% to N20 billion from N17 billion in the first quarter of last year.
Net premium income for the period of study was valued at N17 billion in the first quarter of 2022, a 19% increase from N14 billion in the early months of last year.
Claims expenses was almost at per with last year’s, with just a slight 1% increase to N11 billion from N10.98 billion as the year 2022 continues to be a recovery year for the insurer.
Meanwhile, the company sustained an underwriting loss of N0.287 as against the profit of N27.7 billion in the first quarter of 2022.
Investment and other loss income stood at N4.6 million in first months of the year, signalling a 119% rebound from the N23 billion loss last year.
Other expenses rose by 105% to close at N5.8 billion in the first quarter of 2022 from N2.8 billion.
Other key projections
- The Non-Life business represents 28% of the stated GWP while the Ordinary Life, Group Life and Annuity businesses represent 53%, 11% and 8% respectively.
- Investment income will be driven largely by the firm’s bond investments and our investment in other short-term financial assets.
- The following non-cash transactions were included in the Statement of Profit or Loss and Other comprehensive income: – Depreciation of Non-current asset in line with the Group’s policy – Amortization of intangible assets – Net fair value gain/loss on financial assets.
- Reinsurance expenses is projected at an average of 12% of the projected Gross Written Premium.