AIICO boosts earnings from general insurance, sale of stake in subsidiary
AIICO Insurance Plc has announced a Gross Written Premium (GWP) of N45.5 billion in the half year 2022, up by 21.4 per cent compared with N37.481billion recorded within the same of in 2021. This was on the back of high inflation environment and currency devaluation.
Inflation rate increased to 18.60 per cent as at end of June 2022, highest in 11 months due to increased food costs, supply chain disruptions, the depreciation of the Naira, insecurity, and deteriorating infrastructure.
The growth in gross written premium was due to a Y-o-Y increase of 39.4 per cent in General Insurance to N15.5 billion in H1 2022 from N11.1 billion accounted in H1 2021.
Life Insurance premiums increased by 14.2 per cent Y-o-Y to N29.6 billion in H1 2022 from N25.9 billion in H1 2021 and underwriting income from our Health Maintenance Organisation (HMO) increased by 31.4 per cent Y-o-Y to N599.9 million in H1 2022 from N456.4 million in H1 2021
AIICO completed the sale of its stake in AIICO Pensions, recording a profit from discontinued operations of N2.9 billion. As a result, profit for the interim period rose by 51.4 per cent to N4.9 billion in H1 2022 from N3.3 billion in H1 2021.
Accordingly, the company’s unaudited report obtained from the Nigerian Exchange Limited, shows that AIICO Insurance also earned gross premium income of N40.573 billion or 17.8 per cent from N34.435 billion.
Conversely, Net premium income which refers to gross premium income less applicable reinsurance expense stood at N34 billion for the company, a growth of 16.7 per cent compared with the group’s N33.671billion.
The operating income in Asset Management however declined by 9.5 per cent Y-o-Y to N697.6million in H1 2022 from N770.5 million in H1 2021.
Profit Before Income tax from continuing operations increased by 146.9 per cent Y-o-Y to N2.2 billion in H1 2022 from N908.6 million in H1 202.
Profit before income taxes across the company and its subsidiaries increased Y-o-Y contributing to the reported increase for the period. The company said this was due to improved topline and investment performance for the period compared to H1 2021.
Commenting on the results, Mr. Babatunde Fajemirokun, the Managing Director and Chief Executive Officer said, “Our half year results are a testament to the resilience of our business model, our focus on AIICO Insurance Plc.”
“Creating products that our customers need to navigate uncertain periods in their lives and the trust that our customers have that we will be there when they need us. Every insurance policy we sell is a contract with our customers and a promise that we take very seriously. For us at AIICO Insurance, all our efforts are geared towards ensuring that our customers can believe us when we say that we are here for the long haul, come rain or shine,” said Mr Fajemirokun.
