AIICO Insurance announces 26% premium growth

AIICO Insurance Plc, said it grew its gross written premium for the second quarter of 2020 by 26 per cent, from N25.4 billion in the second quarter of 2019, to N31.9 billion as of the second quarter of 2020.

AIICO Insurance Managing Director, Mr. Babatunde Fajemirokun, attributed the company’s premium growth to sustained positive performance across the major lines of business of the AIICO Group.

According to Fajemirokun, the group’s shareholders’ funds increased by 9.39 per cent from N27.9 billion in 2019, to N30.5 billion.

He said this was 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.

He, however, said the group’s profit before tax (PBT) declined by 28 per cent to N2.17 billion, compared to N3.01billion in the second quarter 2019, explaining that 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 per cent increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund).

“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, Fajemirokun said.

He said 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.