AIICO Insurance is Well Capitalised as Solvency Ratio Strengthens

AIICO Insurance continues to be well capitalised relative to risk taken as its solvency position strengthens, which indicates the insurer has been recording consistent growth in earnings.

The largest listed quoted insurer by total asset recorded solvency ratio of 433 percent as at September 2024, from 296 percent as at September 2023, according to data gathered by MoneyCentral.

The improvement in solvency ratio for AIICO Insurance reflects an uptick in premium revenue, as customers are accepting the company’s product as well as higher investment income that lifted profit.

The insurer’s profit after tax (PAT) surged by 103.38 percent to N12.40 billion as at September 2024, from N5.92 billion as at September 2023.

Gross premium written (GPW) rose by 53.72 percent to N130.87 billion in the period under review from N85.13 billion the previous year.

Insurers’ earnings have been growing steadily on the back of a gradual economic recovery as investors have confidence in the bold reforms of president Bola Tinubu.

Also, another driver of earnings is the magnified awareness about the usefulness of taking up a cover and prompt claims payment.

Nigeria’s economy recorded a 3.46 per cent year-on-year growth in Gross Domestic Product during the third quarter of 2024, in the latest GDP report from the National Bureau of Statistics (NBS).

AIICO Insurance Fund business has been thriving.

For instance, the AIICO Eurobond Fund closed the month of September with a year-to-date (YTD) yield of 6.96 percent . The Eurobond market opened with bearish sentiments, driven by weaker-than-expected U.S. economic data and global geopolitical tensions. These factors exerted downward pressure on the market.

Over the last couple of years, the company’s assets under management have grown from N20billion in January 2013 to over N200 billion as at December 2020. We have also delivered returns to clients significantly in excess of portfolio benchmarks over the period.

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