AIICO Insurance declares N5bn profit, increase four per cent YnY 2021

By Philemon Adedeji

AIICO Insurance Plc on Sunday declared a profit  of N5 billion profit for the year 2021, a slight rise from the N4.8 billion reported the previous year. The year 2021 was a recovery year for the insurer as it improved its premium written and income during the year.

However, a cursory look at the result shows that the amount reported as profit was almost flat despite that the insurer improved gross premium income by a whopping 17 per cent to N70 billion from N60 billion during the pandemic period.

Further analysis shows that this was driven by high claims expenses accompanied by a loss in ‘other income’ during the period when compared with the previous year.

Gross premium written was high by 16 per cent to close at N71 billion from the N61 billion witnessed during the COVID year. This shows that the insurer rode on the year of recovery to improve its performance.

Net premium income stood at N57 billion in 2021 from N52 billion in 2020, the result shows a 11 per cent high from the previous year following reinsurance expenses valued at N12 billion in 2021.

Net Claims expenses amounted to a negative N40 billion in 2021 against the positive N31 billion in the previous year, depicting a 226 per cent difference in both years.

The insurer sustained an underwriting profit of N30 billion in 2021.

The result is impressive when compared with the negative N37 billion in 2020.

The company’s total assets recorded was declined by N20 billion, to represent 9 per cent from N243 billion in corresponding period of 2020 to N222 billion in previous year.

At the close of market on Friday, 8th April 2022, the market capitalisation of AIICO Insurance was N24.5 billion while its share sold at N0.67.