AIICO Insurance premiums increase by 23% to N17.6bn in first quarter

AIICO Insurance Plc on Thursday announced a Gross Written Premiums of ₦17.6 billion for first quarter of 2020, indicating 23 per cent increase from N14.3 billion recorded in the same period of 2019.

The Company’s spokesman, Mr Ademola Adenekan, said in statement that the growth was driven by the group’s sustained positive performance which included retail, corporate and institutional businesses.

It said the group also recorded a 24 per cent increase in Profit Before Tax (PBT) of N1.44 billion, compared to N1.17bn in first quarter of 2019.

“Profit After Tax (PAT) also grew by 129 per cent to N1.88 billion, compared to N0.82 billion attained in first quarter 2019,” it said.

Mr Babatunde Fajeromirokun, Managing Director/Chief Executive Officer of the firm, said that AIICO delivered excellent first quarter results.

Fajeromirokun noted that this demonstrated the overall strength of the company and its ability to continue to meet the obligations to stakeholders even in the face of the COVID-19 global pandemic.

“We are living in a period of uncharted waters and recognise the situation presents both challenges and opportunities.

“Our resilient business continuity plans and robust technology infrastructure ensured we remained operational throughout the lockdown period.

“We have rolled out additional digital channels for the convenience and safety of our customers, and our employees have embraced the Work-From-Home (WFH) concept – indeed this is the new normal,” he said.

According to him, in the light of these outcomes, the firm recorded strong growth in its Retail Life business, which grew by 34 per cent to N10.97 billion (Q1 2019: N8.2billion ); and an increase of six per cent in its Corporate and Institutional business to N6.2 billion (Q1 2019: N5.9 billion).

Fajeromirokun explained that within the period under review, the group’s balance sheet improved with total assets growing by 11 per cent to N176 billion, compared to N159 billion in Dec 2019.

He said shareholders’ funds also rose by 0.28 per cent to N27.99 billion (Dec 2019: N27.91billion).

The Managing Director stated that insurance has a critical role to play in the economy and business environment in which we operate.

“With the advent of this pandemic, we are seeing increasing requests from corporations in Nigeria trying to understand how insurance can be deployed as a strategy for building resilience within their businesses.

“On the retail side, we are seeing new trends emerge; one of which is the shift towards a low touch world, where close-contact interaction is discouraged.

“In response, we are positioning to take advantage of these trends and opportunities presented by the COVID-19 pandemic to reshape and disrupt the way we operate, interact and our go-to-market strategy.

“I am, however, confident that we will get through this difficult times and emerge stronger,” Fejemirokun said.