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AIICO Insurance Plc is the cream of crop as the insurer’s solid solvency that indicates a healthy balance sheet and adequate liquidity validates a strong earnings position even amid an unfavorable underwriting position.
For the first nine months through September 2023, AIICO Insurance’s solvency margin ratio stood at 182 percent, higher than 154 percent recorded in 2022, according to data from the company’s website.
A stable solvency margin ratio means AIICO Insurance has the resources to meet its financial obligation such as payment of claims and there is no threat to the going concerns.
The company’s solvency-which is excess of total admissible assets over admissible liabilities of N32.18 billion, exceeds total liabilities of N18 billion.
In its third quarter unaudited results for the interim period ended 30 September 2023, the company saw gross premiums written rise by 22.5 percent to N85.1 billion under the IFRS 4 standard.
Group revenues increased 31.9 percent year-on-year to ₦51.3 billion (9M 2022: ₦38.9 billion).
AIICO Insurance service result, which is insurance revenue less expenses declined year-on-year to ₦215.8 million in 9M 2023 (9M 2022: ₦1.3 billion) due mainly to the increase in insurance service expenses compared to 9M 2022.
Total income or net insurance and investment result however grew 83.1% to ₦8.7 billion (9M 2022: ₦4.8 billion) as a result of the increased investment income and the exchange rate effects of the devaluation of the naira on our foreign exchange holdings.
Profit before income tax from continuing operations increased 182.0% to ₦6.7 billion in 9M 2023 (9M 2022: ₦2.4 billion).
Total assets increased by 11.8 percent to ₦300.7 billion as of 9M 2023 (FY 2022: ₦269.0 billion) driven mainly by a 9.4 percent growth in financial assets, which constitutes ca. 82.0 percent of the total assets.
Total equity increased by 11.3 percent to ₦44.1 billion as of 9M 2023 (FY 2022: ₦39.6 billion) mainly due to a 30.3 percent increase in retained earnings to ₦14.6 billion as of 9M 2023 (FY 2022: ₦11.2 billion) from profits made in the first half of the year.
“Commenting on the results, Mr. Babatunde Fajemirokun, the Managing Director and Chief Executive Officer said, “Our performance in the third quarter stands as a testament to our resilience and the enduring sustainability of our business model, even amidst the challenging macroeconomic landscape of 2023. It highlights the wisdom of our strategic investments aimed at improving our value proposition, diversifying our product range, and elevating our technological capabilities. Our commitment to maintaining the trust of our valued customers is unwavering and remains a core pillar of our values, especially during these challenging times. It underscores our dedication to delivering the highest quality products and services to them.”
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