According to the audited statistics for 2020 released by AIICO Insurance Plc, the company’s Gross Written Premium was N60.7 billion.
This is stated in a statement provided to newsmen in Lagos on Tuesday and signed by Mr. Segun Olalandu, the insurer’s Head of Marketing Strategy and Communication.
Olalandu claimed that when compared to the N50.1 billion figure for the 2019 financial year, the N60.7 billion figure showed a rise of 21.3%.
He credited the expansion to ongoing investments in the agency’s workforce, a stronger emphasis on partnerships, and improved corporate ties.
The firm suffered an underwriting loss of N36.3 billion in 2020 as opposed to N7.7 billion in 2019, according to the spokeswoman.
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He blamed the loss mostly on two elements: the need for reserves for new life business policies underwritten in 2020 and adjustments to actuarial reserves in the life business for policies issued in 2020 and earlier years.
The value of obligations and assets in our life business were impacted by large changes in investment yields.
In 2020, yields decreased by roughly 7.7% and 5.5% at the short and long ends of the yield curve, respectively.
These changes have an impact on life and annuity funds, as well as income statement gains or losses attributable to fair value.
Additionally, our retail product mix has changed as a result of shifting customer preferences.
According to him, “several of these products entail greater reserve requirements, which increases our liabilities and lowers reported underwriting earnings.
AIICO Insurance Gross Premium
He said that the rise in fire claims brought on by nationwide civil unrest and specific oil lines also contributed to a drop in underwriting performance in the general business.
According to Olalandu, the rise in assets under control caused the insurer’s investment income to climb by 13.1% annually to N11.7 billion in the 2020 financial year from N10.4 billion in the previous financial year.
He claimed that from N6.0 billion in the 2019 financial year, profit before tax from continuing activities decreased by 22.6% annually to N4.6 billion in the 2020 financial year.
He claimed that the lower-than-anticipated profits in the company’s life business as a result of higher-than-anticipated reserving requirements/low yields were the cause of the decline.
However, he added, “our Wealth Management and General Insurance businesses boosted their contribution to profitability.
According to Olalandu, the profit after tax from continuing activities decreased by 12.9% annually from N5.7 billion in the 2019 financial year to N5.0 billion in 2020.
He claimed that the profit for the year dropped from N5.9 billion in the 2019 financial year to N5.2 billion in the 2020 financial year, a reduction of 11.1% year over year.
The company’s total asset climbed by 52.4% to N243.1 billion in the 2020 fiscal year from N159.5 billion in the previous fiscal year, according to the spokesman.
He claims that from N130.6 billion in the 2019 financial year to N208.4 billion in the 2020 financial year, AIICO’s total liability increased by 59.5 percent.
He claimed that from N28.9 billion in the 2019 fiscal year to N34.7 billion in the 2020 fiscal year, the firm’s total equity climbed by 19.9%.
According to the statement, Mr. Babatunde Fajemirokun, Managing Director/Chief Executive Officer of the insurance company, the epidemic generated a dubious global marketplace and resulted in a global economic upheaval.
According to Fajemirokun, the Nigerian economy entered its second recession in five years, and incidences of civil disturbance also had an adverse effect on the economic climate.
“Despite these extraordinary macroeconomic upheavals, AIICO saw a 52.5 percent increase in total assets during the reviewed year.
“We produced solid results after making quick decisions to safeguard our workers, bolster our distribution plan, strengthen our financial position, and streamline operations.
“We made enormous investments in human capital and technology over the previous five years to considerably improve our client experience.
“As a result, despite the pandemic’s limitations, our gross written premiums increased by 23.6% year over year,” he said.
The company’s financial standing, in the managing director’s opinion, is still good, giving clients confidence that they can transfer their risks to the company with ease.
Investors in the insurer demonstrated their dedication, according to Fajemirokun, since the rights offering it announced in September 2020 was around 26% oversubscribed.
He stated that the cash was wisely used, producing risk-adjusted returns for its shareholders and making sure that it kept its commitments.
With over 50 years of experience in providing clients with insurance, AIICO Insurance is a top composite insurer in Nigeria.
AIICO, which was established in 1963, offers wealth-building and wealth-protection services to individuals, families, and business clients through life and health insurance, general insurance, investment management, and pension management. (NAN)
Last Updated on February 7, 2023 by NetworkPalava Admin