AIICO Insurance plc has announced Profit After Tax of N7.55 billion for the year ended December 31, 2022 as against N4.92 billion profit in the same period in 2021.
The company announced this at its 53rd Annual General Meeting held in Lagos.
AIICO’s shareholders at the meeting applauded the growth trajectory achieved by the firm during the period commending the board and management of the firm for the positive financial performance and sustained dividend payout during the year.
Chairman of AIICO Insurance Plc, Mr. Kundan Sainani informed the shareholders that the firm’s Gross Premium Written (GPW) stood at N88.28 billion in 2022, compared to N71.63 billion recorded in 2021, while the Gross Premium Income (GPI) was N74.03 billion, as against N61.10 billion achieved in the previous year.
Sainani maintained that the company’s net claims payment was N44.99 billion in the year under review, contrary to N39.91 billion expended in the previous year. According to him, the firm’s total assets in the year were N270.33 billion; total equity, N45.01 billion, and shareholders’ fund, N44.59 billion.
He noted that the company’s approach to capital allocation has not changed, adding that the firm still has to manage the tension between reinvesting in its businesses and returning cash to shareholders while keeping regulatory and economic capital constraints in view.
“To manage these tensions, and in recognition of the importance of returning cash to Shareholders, the company has a dividend policy that stipulates a percentage of profits to be returned to shareholders, whenever possible.
“In the 2021 fiscal year, the company returned a dividend per share of 2 kobo to shareholders, considering our constraints. This year, the company is happy to announce that it is proposing a dividend of 3 kobo per share to shareholders, a 50 percent rise from the payout in the last year. The
company’s management has determined that subject to economic capital targets, this sum represents the optimal cash transfer to shareholders, based on the 2022 full-year performance,” he said.
He said the company recorded impressive revenues and growth in shareholders’ value in 2022, adding that the achievement was part of the company’s efforts to improve engagement with shareholders and the investment community.
Speaking at the meeting, the National Coordinator, Independent Shareholders Association of Nigeria, (ISAN), Moses Igbrude, said the company’s financial performance amid enormous challenges in the country was commendable.
Whilst applauding the firm for a 3kobo dividend payout, he implored the firm to do more in insurance education, stressing that getting more policyholders, would beget more profits and return on investment to shareholders.
Another Shareholder, Managing Director Lancelot Ventures Limited, Adebayo Adeleke, commended the firm for recording such a good financial performance.