AIICO Sustains Profitability, Grows GWP By 32% To N25.4bn In H1 2019
By Ngozi Onyeakusi — AIICO Insurance Plc, one of the leading underwriting firms in the country has announced its financial results for H1 2019.
The Group reported gross written premiums of ₦25.4bn, up from the N19.2bn recorded within the same period of 2018.
This growth, according to the firm was driven by continued solid performance across the major lines of business of the group that is life and corporate & institutional businesses.
Briefing the media at a parley in Lagos, the Executive Director / Chief Operating Officer, Mr. Babatunde Fajemirokun stated, “this performance is a demonstration of a focused implementation of our renewed strategy, notwithstanding the challenging operating environment”.
In line with the renewed strategic aspirations for market leadership with focus on profitable growth, the company recorded a 42% increase in Profit before tax (PBT) of N3.11 billion, compared to N2.19bn in H1 2018. Profit after tax (PAT) also grew by 52% to N2.94 billion, compared to N1.93 billion attained in H1 2018.
Speaking further, Mr. Fajemirokun said, “customer-centric product innovations, sustained investments and automation of our agency salesforce continues to yield dynamic results as we recorded strong growth in our retail life business, which grew by 47% to N15.5bn (H1 2018: N10.6bn); and an increase of 14% in our corporate and institutional business to N9.5bn (H1 2018: N8.2bn).
Within the period under review, the Group’s balance sheet improved with total assets growing by 24% to N135 billion compared to N109 billion in Dec 2018. Also, noteworthy, is the growth in shareholders’ funds, which rose by 14% to N16.6 billion (Dec 2018: N14.5 billion). Commenting on the new capital requirements for the insurance industry, Mr. Fajemirokun said “AIICO has put adequate strategies in place that will ensure we not only meet the new capital requirement for a composite underwriter but also surpass same with sufficient solvency margins”.
Going into the second half of the year, we remain committed to the execution of our strategic objectives whilst staying focused on our primary purpose of protecting our customers and delivering superior returns to shareholders. As we look to the future, we remain guided by our mandate to provide shared protection to every family and business, so they can live life with confidence amidst uncertainty.