AIICO Insurance Plc has posted a Profit After Tax of N5.2 billion for the period ended September 2020. The latest figures indicate an increase of 17 per cent from N4.5 billion posted in the corresponding period last year.
The company’s gross premiums written in 2020 grew by 27 per cent YoY, from N37.0 billion in Q3 2019 to N47.2 billion.
The company’s total assets increased to N245.8 billion from N159.5 billion as at December 2019, indicating a 55 per cent increase while total liabilities also increased from N130.6 billion as at December 2019 to N212.6 billion, indicating 63 per cent.
Commenting on the latest financials, the Managing Director and Chief Executive Officer, AIICO Insurance, Babatunde Fajemirokun said, “Global and local macroeconomic headwinds continue to test the resilience of our business, and operating models, as well as our business continuity plans and the strength of our relationships with our customers and partners.
“Our 3rd quarter results demonstrate that our business remains steady, despite the changing client preferences and risk exposures that have accompanied the COVID-19 pandemic. We have recorded strong top-line growth year-on-year, as well as improved contribution from subsidiaries in our Group, especially our asset management business.
”In our core insurance business, we will continue to offer innovative products that help our customers create and protect their wealth while leveraging the latest technology to meet our clients where they are. In addition, strong asset-liability management remains a pillar of our operating model. As a diversified financial services group, we will continue to ensure that businesses across our Group offer attractive products that enable us create value for all stakeholders.”
He finally asserted that, “Our financial position remains strong, inspiring confidence in our ability to assume the risks our customers wish to transfer. We deploy this capital judiciously, generating risk adjusted returns for our shareholders, and ensuring that we can continue to keep our promises.”
The growth recorded in the total assets were driven by an increase in financial assets, including cash and cash equivalents.
Financial assets increase because of the decline in investment yields and judicious investment of funds received for policies sold
The increase in total liabilities were driven mainly by increase in insurance contract liabilities and fixed income liabilities in the firm’s asset management business.