Insurance World

AIICO Insurance Grows GWP By 23% , Profit By 129% In Q1 2020

BY NKECHI NAECHE-ESEZOBOR–AIICO Insurance Plc, one of the leading underwriting firms in the country has witnessed impressive growth in key indices in its First quarter (Q1) 2020 financial account.

According to statement released by the company that it recorded a growth of 23 percent in its Gross Written Premium to stand at N17.6billion when compared to N14.3 billion achieved in same period of 2019.

The lead underwriter noted that the growth is driven by sustained positive performance across the major lines of business of the Group: Retail and Corporate & Institutional businesses.

The statement added that the group also recorded a 24% increase in profit before tax (PBT) from N1.17bn in Q1 2019 to N1.44 billion in the period under review, while profit after tax (PAT) also grew to N1.88 billion as against N0.82 billion attained in Q1 2019, this representing a growth of 129 percent.

Speaking on its performance the Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun, “AIICO delivered excellent first quarter results, demonstrating the overall strength of our Company and ability to continue to meet our obligations to stakeholders even in the face of the COVID-19 global pandemic. We are living in a period of uncharted waters and recognize the situation presents both challenges and opportunities. Our resilient business continuity plans and robust technology infrastructure ensured we remained operational throughout the lockdown period. We have rolled out additional digital channels for the convenience and safety of our customers, and our employees have embraced the Work-From-Home (WFH) concept – indeed this is the new normal”.

He further said “In light of these outcomes, we recorded strong growth in our Retail Life business, which grew by 34% to N10.97bn (Q1 2019: N8.2bn); and an increase of 6% in our Corporate and Institutional business to N6.2bn (Q1 2019: N5.9bn).
Within the period under review, the Group’s balance sheet improved with total assets growing by 11% to N176 billion compared to N159 billion in Dec 2019. Shareholders’ funds, also rose by 0.28% to N27.99 billion (Dec 2019: N27.91 billion). He added that “Insurance has a critical role to play in the economy and business environment in which we operate.

With the advent of this pandemic, we are seeing increasing requests from corporates in Nigeria trying to understand how insurance can be deployed as a strategy for building resilience within their businesses. On the retail side, we are seeing new trends emerge; one of which is the shift towards a low touch world, where close-contact interaction is discouraged. In response, we are positioning to take advantage of these trends and opportunities presented by the COVID-19 pandemic to reshape and disrupt the way we operate, interact and our go-to-market strategy. I am however confident that we will get through this difficult times and emerge stronger.”

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