Yemisi Izuora
AIICO Insurance Plc has announced a Profit After Tax (PAT), of N13.6bn for the financial period, representing a 12 per cent increase from the N12.1bn recorded in the previous year.
According to the company’s financial statements filed on the Nigeria Exchange Limited recently, the growth in profit was driven by premium income, investment returns, and cost management.
The company’s gross written premium rose by 45 per cent to N159.3bn, up from N110bn recorded in the corresponding period of the previous year. The firm’s insurance revenue also grew by 49 per cent to N108.2bn, compared to N72.8bn in the prior year.
Investment income played a crucial role in the company’s improved earnings, as net investment income surged by 53 per cent to N42.1bn, which the company attributed to improved returns from its financial assets, including fixed-income securities and equities.
Despite the positive performance, the insurer reported a 33 per cent decline in service results, which fell to N3.6bn due to higher claims payments and underwriting expenses. The company’s total claims expenses increased to N89.2bn.
In the period under review, the firm’s total assets grew by 28 per cent to N407.8bn. Shareholders’ funds also rose by 25 per cent to N64.3bn. AIICO further disclosed that foreign exchange gain on shareholders’ assets stood at N3.9bn, influenced by currency revaluation.
In addition, profit before tax rose by 21 per cent to N15.1bn, compared to N12.5bn in the previous year. Its total comprehensive income increased by eight per cent to N14.9bn, reflecting stable growth in financial performance.