AIICO Insurance Posts N31.9bn Gross Written Premium, Half Year 2020

By LOVETH AZODO, Lagos

AIICO Insurance Plc has reported a Gross Written Premiums of ₦31.9bn representing 26% increase compared to Q2 2019, N25.4bn.

According to the statement by the company, the growth was driven by sustained positive performance across the major lines of business of the Group.

It stated that the Group’s Shareholders’ funds also increased by 9.39% from N27.9bn in 2019 to N30.5 bn, driven by the Group’s earnings for the period and its strong matching of long term asset and liabilities, despite volatile yields along the yield curve.

“However, the Group’s profit before tax (PBT) reduced by 28% to N2.17bn, compared to N3.01bn in Q2, 2019. The reduction was as a result of changes in product mix in the Retail Life business due to changes in clients’ preferences. These product preferences were however impacted by the lower interest yield environment – leading to a 71% increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund).”

“Mr. Babatunde Fajemirokun, the MD/CEO, speaking on the financial results stated, “Besides our operational resilience and strategic marketing within the period, our brand equity, advanced level of automation and business continuity plans enabled us to quickly adjust our business model to meet the emerging demands of the low touch economy, triggered by the global pandemic. The strong committed relationship we have built with our customers continue to endear them to us for repeat business, new businesses and referrals.”

“As the local and global economies gradually recover from the impact of the pandemic, we will seize opportunities for continuous growth. Our response strategy includes product innovation, technology-enabled operating and distribution models, and unparalleled customer experience. We remain optimistic that the second half of 2020 will be better.”

“AIICO’s profitable outcomes amid general uncertainties, challenging macro-economic and highly competitive business environment is a clear indication that it remains an insurer of choice and is well positioned for long-term market leadership.”