AIICO Insurance has announced its financial results for the year ended December 31, 2018, as it recorded a growth of 140 per cent in it’s profit after tax when it increased from N1.3 billion in 2017 to N3.1 billion in 2018.
The companys Gross written premiums for the year ending 31 December 2018 also increased by 17.4 per cent from N32.1 billion in 2018.
Executive Director of the company, Mr. Babatunde Fajemirokun, explained that the outstanding performance was predominantly driven by growth in both the Life and Non-life businesses of the company.
He said, 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”.
According to him, the companys 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.
The Managing Director of the company, Mr. Edwin Igbiti, said 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 companys statement of financial position.”
The companys 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.
