Business Journal

Insurance

AIICO Insurance Reports Group Revenue of N15bn in Q1, 2023

 

Mr. Babatunde Fajemirokun

Group Managing Director/CEO

AIICO Insurance Plc

AIICO Insurance Group, one of Nigeria’s leading insurance companies, has announced a 28.1% year-on-year increase in group revenue to ₦14.8 billion for Q1 2023, up from ₦11.5 billion in the same period last year. The company also reported a 28.7% growth in premium written to ₦31.7 billion under the IFRS 4 standard.

The insurance service result, which is the insurance revenue less expenses, increased by 318.0% to ₦1.95 billion in Q1 2023, up from ₦466 million in Q1 2022, primarily due to the increase in revenue during the quarter. As a result, the total income, or net insurance and investment, grew by 4.9% to ₦4.7 billion compared to ₦4.5 billion in Q1 2022.

While profit before income tax from continuing operations declined by 12.3% to ₦1.4 billion in Q1 2023 compared to ₦1.6 billion in FY 2022, AIICO Insurance’s continuing operations have benefited from improved asset-liability management and risk selection, especially in its corporate business. This has reduced the company’s financial position volatility, which is expected to persist over time.

Total assets increased by 2.2% to ₦280.6 billion, driven mainly by an 87.7% growth in cash and cash equivalents, constituting approximately 10.6% of the total assets.

Total liabilities also increased by 2.2% to ₦236.0 billion due to a 21.8% growth in fixed income liabilities relating to the company’s non-pension asset management business.

Total equity increased by 1.9% to ₦44.6 billion, mainly due to a 5.3% increase in retained earnings to ₦16.1 billion as of Q1 2023.

AIICO Insurance’s CFO, Oladeji Oluwatola, commented on the new IFRS 17 standard for insurance reporting: “The new reporting standard heralds a shift, not just in how we report, but how investors and analysts should examine the fundamentals of a sustainable insurance business.” In addition, the new standard will enable the investing public to compare results between firms better, regardless of their business model or the types of products they sell.

 

AIICO Insurance Group, one of Nigeria’s leading insurance companies, has announced a 28.1% year-on-year increase in group revenue to ₦14.8 billion for Q1 2023, up from ₦11.5 billion in the same period last year. The company also reported a 28.7% growth in premium written to ₦31.7 billion under the IFRS 4 standard.

The insurance service result, which is the insurance revenue less expenses, increased by 318.0% to ₦1.95 billion in Q1 2023, up from ₦466 million in Q1 2022, primarily due to the increase in revenue during the quarter. As a result, the total income, or net insurance and investment, grew by 4.9% to ₦4.7 billion compared to ₦4.5 billion in Q1 2022.

While profit before income tax from continuing operations declined by 12.3% to ₦1.4 billion in Q1 2023 compared to ₦1.6 billion in FY 2022, AIICO Insurance’s continuing operations have benefited from improved asset-liability management and risk selection, especially in its corporate business. This has reduced the company’s financial position volatility, which is expected to persist over time.

Total assets increased by 2.2% to ₦280.6 billion, driven mainly by an 87.7% growth in cash and cash equivalents, constituting approximately 10.6% of the total assets.

Total liabilities also increased by 2.2% to ₦236.0 billion due to a 21.8% growth in fixed income liabilities relating to the company’s non-pension asset management business.

Total equity increased by 1.9% to ₦44.6 billion, mainly due to a 5.3% increase in retained earnings to ₦16.1 billion as of Q1 2023.

AIICO Insurance’s CFO, Oladeji Oluwatola, commented on the new IFRS 17 standard for insurance reporting: “The new reporting standard heralds a shift, not just in how we report, but how investors and analysts should examine the fundamentals of a sustainable insurance business.” In addition, the new standard will enable the investing public to compare results between firms better, regardless of their business model or the types of products they sell.

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