Yemisi Izuora
AIICO Insurance Plc has announced that its underwriting profit increased 326 percent at the close of financial year ended 31st December 2016.
The managing Director/ CEO Mr Edwin Igbiti disclosed during a pre- AGM media briefing in Lagos that the insurer’s underwriting profitability increased from a loss of N5.5billion to a profit of N12.45billion across the group driven by slight underwriting improvements in the non life business release of the reserves in the life business.
He said due to the reduction in its annuity reserves which is recorded as a decreased in unearned premiums in its income statement and a released to profits, the company recorded a gross premium income of N30 billion in 2016 when compared with N10.4 billion reported in same period of 2015; indicating 188 percent increase.
He said that actual investment income appreciated by 27 percent from N5.7 billion in 2015 to N7.2 percent at the end of 31, December 2016.
Igbiti noted that the company’s asset management capabilities continue to be a key strength for the company following its outstanding performance in investment income due to high yield.
He added that profit after tax rose 756 percent from N1.195 billion to N10.2 billion in 2016, while Profit before tax rose to N11.835 billion in 2016 as against N1.799billion achieved in 2015; representing 558 percent increase.
However it’s total assets came down by N2.6 billion from N80.1 billion achieved in 2015 to N77.5 billion which he said was due mainly to the reduction in the value of financial income assets and the one time expenses which decreased cash holdings and financial assets.
The company’s gross premium dropped to N27.1billion in 2016 as against N32.9billion recorded in the financial period of 2015; representing 17. 8 percent largely because of its strategic decision to reduce premiums written in the long term business due to higher market risks
He assured that the oldest insurer in Nigeria is poised to remain committed to its clients spread across the country.
The AIICO boss further said that their plan is to grow the insurance market premium by maintaining its close relationship with insurance brokers and its agency network.