AIICO Insurance Plc has reported its financial results for first half of 2019 which showed it achieved gross written premiums of N25.4 billion within the period.
This, the life underwriting specialist stated represents 32 per cent growth over N19.2 billion premium it achieved within the same period in 2018.
The company stated that the growth was driven by the firm’s continued solid performance across its major lines of business which includes life and corporate & institutional businesses.
Executive Director / Chief Operating Officer of AIICO, Mr. Babatunde Fajemirokun, who disclosed this while briefing journalists on the company’s performance during the first half of the year said the performance was a demonstration of a focused implementation of AIICO’s renewed strategy, notwithstanding the challenging operating environment.
He said in line with the firm’s renewed strategic aspirations for market leadership with focus on profitable growth, the company recorded a 42 percent increase in Profit before tax (PBT) having posted N3.11 billion in this regard, compared with N2.19 billion profit it made in the comparable period of 2018.
“Profit after tax (PAT) also grew by 52 percent to stand at N2.94 billion, compared to N1.93 billion attained in H1 2018,” he said.
Speaking further, Fajemirokun said, “customer-centric product innovations, sustained investments and automation of our agency salesforce continues to yield dynamic results as we recorded strong growth in our retail life business, which grew by 47 per cent to stand at N15.5 billion, as against first half 2018.”
He said within the period under review, the Group’s balance sheet improved with total assets growing by 24 per cent, to N135 billion, compared to N109 billion in December 2018.
Commenting on the new capital requirements for the insurance industry, Fajemirokun said AIICO insurance has put adequate strategies in place that would ensure that it does not only meet the new capital requirement for a composite underwriter but also surpasses same with sufficient solvency margins.
“Going into the second half of the year, we remain committed to the execution of our strategic objectives whilst staying focused on our primary purpose of protecting our customers and delivering superior returns to shareholders.
“As we look to the future, we remain guided by our mandate to provide shared protection to every family and business, so they can live life with confidence amidst uncertainty”, the AIICO insurance boss said.
Speaking on the new products, AIICO Moneywise Term Assurance product and travel insurance introduced by the company, Head Technical ,Retail Business Division Titilola Okunlola, described the product as a life cover that guarantees 100 per cent cash back to policyholders when policy elapses without claims.
According to her, the product provides AIICO Insurance customers with a win-win situation such as financial protection for loved ones within the duration of the policy, if life happens or full refund of premiums should the policyholder survive the period.
She listed features and benefits of the products as guaranteed payment of the sum assured, flexible policy tenure between 5 – 20 years, affordable premium, cover amount being determined by policyholder, convenient premium payment options; monthly, quarterly, semi-annual, annual or single premium paymen, as well as possibility of premium payments certificates being used for tax relief, among others.
She also spoke on AIICO’s World Travel and Domestic Air Travel Insurance saying
“In this season of summer holidays, we will like to inform the public of AIICO’s World Travel Insurance, which has a cover with benefits of up to $200,000.
According to her, highlights of the cover include: loss or theft of baggage, emergency medical expenses, medical evacuation, repatriation or transport to medical centre expenses and follow up treatment in Nigeria and lots more.
She said AIICO’s Schengen cover offers more than the embassy standard requirement cover of €30,000.
Recapitalisation: Sovereign Trust Insurance Offers Rights Issue to Shareholders
Sovereign Trust Insurance Plc is offering 4,170,411,648 ordinary shares by way of rights issue to its shareholders.
With this, the company seeks to upgrade its capital to the tune of N10 billion as a general business underwriter in response to the regulator’s new minimum required capital.
Sovereign Trust Insurance Chairman, Oluseun Ajayi, who announced this at the 24th Annual General Meeting of the company held in Lagos recently, said this was expected to be finalised by the third quarter of this year.
He urged the shareholders to pick up the offer while it last to beef up the company’s capital.
He said the company would consider other capital raising options during the course of the year, adding that this may involve bringing in foreign investors into the company.
On the performance of the company in 2018 business year, Ajayi, said with 118 per cent significant increase in the company’s profit after tax for the year ended December 31st, 2018, Sovereign Trust Insurance Plc, was poised and strategically positioned having set machinery in motion to remain afloat as a strong general insurance business underwriter to meet the regulator’s N10 billion capital requirement.
He said the company during the period under review grew its Gross Premium Written by 23 per cent to stand at N10.5 billion against N8.5 billion it made in 2017.
Its net premium equally grew by 31 per cent to N5.5 billion up from N3.85 billion figure in 2017.
Profit After Tax grew to N344 million, showing 118 per cent growth from N158 million net profit recorded by the company in 2017.
Commenting on the result, Ajayi said, “despite the challenging business environment, in the year 2018, I am delighted to report that your company returned to achieving steady revenue growth and continued our profit drive, our company was able to record gross premium written of N10.5 billion, representing a 23 per cent increase over N8.5 billion figure recorded in 2017.”
He attributed the profit track of the company to the management’s commitment to growth.
“This indicates the commitment to sustain the growth of both revenue and profitability, consequently, the return on capital employed recorded a positive performance of 9.29 per cent as against 1.87 per cent achieved in the corresponding year of 2017.
“Similarly. earnings per share improved by 118 percent from1.89 kobo in 2017 to 4.13 kobo in 2018,” he added.
He noted that the size and quality of the company’s balance sheet recorded improvement by the above performance for the year while total assets of the company, rose from N10.8billion in 2017 to N11.3 billion, representing five per cent growth.
“The shareholders’ fund increased by six per cent, from N5.5 billion in 2017 to N5.8 billion in 2018. In all, the company recorded a modest financial performance in the year under review,” Ajayi said.
