AIICO’s gross written premium rose by 26% to N31.9bn in H1 2020

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By Raphael Innocent

AIICO Insurance Plc has reported a Gross Written Premium (GWP) of N31.9 billion as at June 2020, which signifies a 26 per cent increase, compared to N25.4 billion recorded in comparative period of 2019.

A statement made available by the firm in Lagos on Monday said that the growth was driven by sustained positive performance across the major lines of business of the Group.

It said that the group’s shareholders’ funds increased by 9.39 per cent from N27.9 billion in 2019 to N30.5 billion.

According to the statement, the growth is driven by the group’s earnings for the period and its strong matching of long-term asset and liabilities, despite volatile yields along the yield curve.

“However, the Group’s Profit Before Tax (PBT) reduced by 28 per cent to N2.17 billion, compared to N3.01 billion in the second quarter of 2019.

“The reduction was as a result of changes in product mix in the Retail Life business, due to changes in clients’ preferences.

“These product preferences were, however, impacted by the lower interest yield environment – leading to a 71 per cent increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund), “ it said.

Commenting, Managing Director and Chief Executive Officer (CEO) AIICO, Mr. Babatunde Fajemirokun said that other factors besides the company’s operational resilience and strategic marketing within the period contributed to the successes recorded.

Fajemirokun mentioned its brand equity, advanced level of automation and business continuity plans as factors that enabled the company to quickly adjust its business model to meet the emerging demands of the low touch economy, triggered by the global pandemic.

“The strong committed relationships we have built with our customers continue to endear them to us for repeat business, new businesses and referrals,” he said.

According to him, as the local and global economies gradually recover from the impact of the pandemic, the firm will seize opportunities for continuous growth.

The managing director noted that the response strategy included product innovation, technology-enabled operation and distribution models, coupled with unparalleled customer experience.

“We remain optimistic that the second half of 2020 will be better.

“AIICO’s profitable outcomes, amid general uncertainties, challenging macro-economic and highly competitive business environment, is a clear indication that it remains an insurer of choice and is well positioned for long-term market leadership,” he said.