From Ngozi Onyeakusi, Lagos
AIICO Insurance Plc has announced a Profit after tax increase of 146% to close at N3.1 billion for for the financial year ended December 31, 2018, compared to N1.3billon recorded in 2017.
Gross written premium as well rose to N37.7 billion representing an increase of 17.4% when compared with N32.1 billion recorded 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.