Business Journal

Insurance

AIICO Insurance Grows GWP by 21.4% to N45.5bn in H1 2022 

AIICO Insurance Plc, foremost and most resilient insurance services provider has announced a Gross Written Premium (GWP) of N45.5billion in the H1 2022, up by 21.4per cent compared with N37.481billion recorded within the same of in 2021.

While the company posted a growth of 21.4per cent in 2022, the group grossed N45.5billion year-on-year (y-o-y) in the first half of the year from N37billion or 21.6per cent within the period under review.

The company’s unaudited results represent the firm’s performances for the interim period ended 30 June 2022. Accordingly, the company’s unaudited report published recently, shows that AIICO Insurance also earned gross premium income of N40.573billion or 17.8per cent from N34.435billion or 17.9per cent from respectively.

Conversely, Net premium income which refers to gross premium income less applicable reinsurance expense stood at N34billion for the company or 16.7per cent compared with the group’s N33.671billion and equally 16.7per cent growth. Gross written premium grew by 21.4per cent y-o-y to ₦45.5 billion in H1 2022 (H1 2021: ₦37.5 billion).

This was due to a y-o-y increase of 39.4per cent in General Insurance to ₦15.5 billion (H1 2021: ₦11.1 billion). Life Insurance premiums increased by 14.2per cent y-o-y to ₦29.6 billion (H1 2021: ₦25.9 billion) and underwriting income from our Health Maintenance Organization (HMO) increased by 31.4per cent y-o-y to ₦599.9 million (H1 2021: ₦456.4 million).

The operating income in Asset Management however declined by 9.5per cent y-o-y to ₦697.6million (H1 2021: ₦770.5 million). Profit before income tax from continuing operations increased by 146.9per cent y-o-y to ₦2.2 billion in H1 2022 from N908.6million in H1 2021. Profit before income taxes across the company and its subsidiaries increased y-o-y contributing to the reported increase for the period. The company said this was due to improved topline and investment performance for the period compared to H1 2021.

AIICO did also complete the sale of its stake in AIICO Pensions, recording a profit from discontinued operations of ₦2.9 billion. As a result, profit for the interim period rose by 51.4per cent to ₦4.9 billion in H1 2022 from the H1 2021 -₦3.3 billion.

Commenting on the results, Mr. Babatunde Fajemirokun, the Managing Director and Chief Executive Officer said, “Our half year results are a testament to the resilience of our business model, our focus on AIICO Insurance Plc.”

“Creating products that our customers need to navigate uncertain periods in their lives and the trust that our customers have that we will be there when they need us. Every insurance policy we sell is a contract with our customers and a promise that we take very seriously. For us at AIICO Insurance, all our efforts are geared towards ensuring that our customers can believe us when we say that we are here for the long haul, come rain or shine,” said Mr Fajemirokun.

AIICO Insurance Plc is a leading composite insurer in Nigeria with a record of accomplishment of serving its clients that dates back over 50 years. Founded in 1963, AIICO provides life and health insurance, general insurance, and investment management as a means to create and protect wealth for individuals, families and corporate customers.

The Life Insurance segment offers savings, protection products and other long-term contracts (both with and without insurance risk). It comprises a wide range of whole life, term assurance, guaranteed pensions, pure endowment pensions and mortgage endowment products. Revenue from this segment is derived primarily from insurance premium, fees and commission income and investment income.

The General Insurance segment comprises general insurance to individuals and businesses. General insurance products offered include auto, household, commercial and business interruption insurance. These products offer protection of policyholder’s assets and indemnification of other parties that have suffered damage as a result of policyholder’s accident.

The Health segment is a Health Maintenance Organisation for prepaid health plans to cater for the health needs of individuals and corporate organizations. The segment became a full subsidiary of AIICO Insurance Plc on July 1, 2012.

 

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