By Ngozi Onyeakusi — AIICO Insurance PLC has announced 17.4% growth in Gross written premiums for its financial results for the year ended December 31,

2018.
The company’s Gross written premiums grew to N37.7 billion from N32.1

billion in 2017. This outstanding performance was predominantly

driven by growth in both the Life and Non-life businesses of the

company.

According to the Executive Director / Chief Operating Officer, Mr.

Babatunde Fajemirokun, “the year 2018 was significant for our

company, as it marked the end of a 5-year transformation plan.

The meticulous execution of our transformation plans continue

to yield expected results with year-on-year improvements in our

performance”.

“Profit after tax (PAT) continued on the same positive path with a

146% improvement to close at N3.1 billion for FY’18 compared

to N1.3billon in 2017. Earnings per Share (EPS) increased by

144% from 18k in 2017 to 44k in 2018.

The company’s deliberate approach to risk selection, superior

technical underwriting capabilities, actuarial excellence, asset /

liability management, reinsurance arrangements and positive

movement in yields contributed to over 180% improvements in

underwriting profits from negative N4 billion in 2017 to over N3.2 billion in 2018.

According to the MD/CEO, Mr. Edwin Igbiti, “as a company, we are in

the business of bringing relief to our esteemed clients in times of

losses”. This is evidenced by over 25% growth in gross claims from

N23.3 billion in 2017 to N29.1 billion in 2018. From this amount,

about 76% was for benefits and claims payment in our Life business

with the remaining 24% incurred in the Non-Life business.

We expect that as the company continues to grow, claims expenses will

grow accordingly, however, sound reinsurance arrangements (for

Non-Life) and conservative reserves (for Life benefits & claims) have

been put in place to moderate impact on the company’s statement of financial position.

The company’s financial position remains robust and continues to

improve with total assets witnessing a 19% growth from N92.4 billion

in 2017 to N109.9 billion in 2018. Shareholders’ equities also increased

by 38% to N14.5 billion (from N10.5 billion in 2017). Our financial

position is an indicator of our capacity and ability to continue to

provide protection and risk assurance services to our clients over the long-term.

In line with decision to adopt a progressive dividend policy, the Board

shall recommend to the shareholders a 20% increment in dividend

payout for approval at the annual general meeting of shareholders.

This shall translate to a payment of N415,812,268.80, representing six

kobo per ordinary share of fifty kobo each for the financial year ended

December 31, 2018. The proportion of earnings recommended for

dividend pay-out this year has taken into account regulatory solvency

requirement for future business growth. As stated earlier, with the

adoption of a progressive dividend payout policy, our shareholders

and investors can expect to benefit from sustained and improved performance in the coming years.

Speaking on the company’s strategic aspirations, Mr. Fajemirokun,

stated that AIICO’s main strategic objective over the next 5years is to

regain market leadership through rapid and profitable growth. To

deliver on this renewed mandate, we will streamline and leverage

capabilities across the group to grow market share, increase

shareholder value and build customer centric capabilities powered by

digital technologies for superior service delivery.

We believe that AIICO is well-equipped to Go Above and Beyond

current performance levels as we commence this next phase of our

journey to transform and take our company to much greater heights.