AIICO insurance Plc has recorded a decline in gross premium by 18% from N32.9 billion in 2015 to N27.1 billion in 2016.
According to Managing Director/Chief Executive Officer, AIICO Insurance Plc, Edwin Igbiti who spoke at the firm’s Annual General Meeting in Lagos, the decline was because of the strategic decision to reduce premiums written in long term business due to higher market risks.
He also noted that due to the reduction in annuity reserves leading to a decrease in unearned premiums, AIICO recorded a gross premium income of N30 billion in 2016, compared with N10.4 billion reported in 2015; indicating 188% increase.
Speaking further, Igbiti disclosed that underwriting profit increased by 326 per cent from a loss of N5.5 billion to a profit of N12.45 billion across the group, driven by slight underwriting improvements in the non-life business release of the reserves in the life business.
Meanwhile, the actual investment income rose to N7.2 billion in 2016, representing 27 per cent increase compared with N5.7 billion achieved in the previous year.
He disclosed that plans are underway to grow market premium by maintaining close relationship with brokers and agents.
According to him, “We will focus on improving efficiency across it businesses while embedding a culture of rigorous performance management across the organisation.”
He said: “We will continue to invest in our people to increase our human capital, adding we believe that a motivated workforce will represent the company better to our clients.
“Despite the present economic conditions, we have never been more optimistic about the future of this company. We know exactly who we are and where we want to be.”