By Ngozi Onyeakusi Shareholders of AIICO Insurance Plc, have applauded the growth trajectory achieved by the firm, as it recorded N7.55 billion Profit After Tax (PAT) in the year 2022, as against N4.92 billion achieved in 2021.
 
Speaking at the company’s 53rd Annual General Meeting (AGM) on Thursday in Lagos, the shareholders commended the board and management of the firm for the financial performance and sustained dividend payout.
 
The National Coordinator, Independent Shareholders Association of Nigeria, (ISAN), Moses Igbrude, said the company’s financial performance amid enormous challenges in the country is commendable.
 
Whilst applauding the firm for a 3kobo dividend payout, he implored the firm to do more in insurance education, stressing that getting more policyholders, would beget more profits and return on investment to shareholders.
 
Another Shareholder, Managing Director Lancelot Ventures Limited, Adebayo Adeleke, commended the firm for recording such a good financial performance.
 
He enjoined the company to do more in onboarding more policyholders through the deployment of robust technology; needs meeting products and also leveraging its huge fund to invest in opportunities created by deregulation policies of the federal government.
 
Chairman of AIICO Insurance Plc, Mr. Kundan Sainani, at the meeting, told shareholders that the firm’s Gross Premium Written (GPW) stood at N88.28 billion in 2022, compared to N71.63 billion recorded in 2021, while the Gross Premium Income (GPI) was N74.03 billion, as against N61.10 billion achieved in the previous year.
 
Sainani maintained that the company’s net claims payment was N44.99 billion in the year under review, contrary to N39.91 billion expended in the previous year. According to him, the firm’s total assets in the year were N270.33 billion; total equity, N45.01 billion, and shareholders’ fund, N44.59 billion.
 
On dividends to shareholders, he submitted that the company’s approach to capital allocation has not changed, adding that the firm still has to manage the tension between reinvesting in its businesses and returning cash to shareholders while keeping regulatory and economic capital constraints in view. 
 
“To manage these tensions, and in recognition of the importance of returning cash to Shareholders, the company has a dividend policy that stipulates a percentage of profits to be returned to shareholders, whenever possible. 
 
“In the 2021 fiscal year, the company returned a dividend per share of 2 kobo to shareholders, considering our constraints. This year, the company is happy to announce that it is proposing a dividend of 3 kobo per share to shareholders, a 50% rise from the payout in the last year. The 
company’s management has determined that subject to economic capital targets, this sum represents the optimal cash transfer to shareholders, based on the 2022 full-year performance,” he said.
 
The Chairman said the company recorded impressive revenues and growth in shareholders’ value in 2022, adding that the achievement is part of the company’s efforts to improve engagement with shareholders and the investment community. 
 
He stated that the group’s insurance business remains its flagship business, generating the bulk of profits for the group. “This year, the Non-Life and HMO businesses increased their contributions to profit, leading to an 81.2% increase in profit before tax at group level to N5.1 billion from N2.8 billion in 2021,” he added.
 
Sainani noted that in 2022, the company completed the sale of AIICO Pensions to FCMB Group, a process that began in 2021, stating that the company recognised an additional gain of about N2.9 billion from the sale of this subsidiary, leading to total profits after discontinued operations rising 53.6% to N7.6 billion from N4.9 billion in 2021. 
 
He submitted that in total, the gain on sale of the subsidiary across the two years – 2021 and 2022 was N5.2 billion. 
 
In closing, the 53rd Annual General Meeting of AIICO Insurance Plc showcased the company’s resilience, commitment, and dedication to all stakeholders. Together, shareholders, board members, and management look forward to another fruitful year ahead, building on the accomplishments and momentum gained.