By Esther Agbo
AIICO Insurance has reported impressive financial results for the second quarter of 2024, with a profit before tax (PBT) surge of 121.55 per cent compared to the same period last year, reaching N14.1 billion.
The notable increase was driven by a 49.23per cent year-over-year revenue growth for the period ending June 30, 2024, primarily attributed to the company’s transition from IFRS 4 to IFRS 17 accounting standards.
The shift to IFRS 17 has not only modernized AIICO’s accounting practices but also enhanced risk adjustment methodologies, reflecting the company’s commitment to aligning with international best practices. This strategic upgrade has bolstered investor confidence and customer loyalty, contributing to a notable rise in net insurance and investment income in Q2 of 2024, which jumped 116.51per cent to N14.1 billion from 6.5 billion the previous year.
Revenue, +48.1 billion, 49.23per cent YoY, Net expenses from reinsurance, -8.2 billion, 50.57per cent YoY, Net insurance and investment result, +14.1 billion, 116.51per cent YoY, Pre-tax profit: +14.1 billion, 121.55per cent YoY, Profit for the period, +12.6 billion, 116.61per cent YoY.
The company’s earnings per share for Q2 2024 rose to 35 kobo, representing a 118.75per cent increase from the previous year, underlining the profitability and appeal of AIICO’s common stock.
Total assets also saw a healthy growth of 13.93per cent, reaching N324.0 billion, further solidifying AIICO’s financial foundation. The positive financial outcomes, coupled with the IFRS 17 upgrade, have positioned the company favorably in the market, with its current share price at N1.03 and a short-term target of N1.50, reflecting strong buy momentum.
The results indicate not only AIICO’s robust operational health but also its strategic foresight in adopting contemporary accounting frameworks. As the company continues to attract increased patronage and investment, it is poised for sustained growth in the coming quarters.