AIICO Insurance Plc (AIICO) announced its unaudited results for the interim period ended 30 September 2023, with gross premiums written rising 22.5% to N85.1 billion under the IFRS 4 standard.
“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.”
Group revenues increased 31.9%% 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).
The company’s continuing operations have benefited from improved asset liability management and risk selection, especially in corporate business, which has reduced the volatility of the company’s financial position.
“Our year-over-year business performance, highlighted by our 182.4% increase in profit compared to the same period last year highlights our strength and the effective execution of our business strategy, even in a challenging operating environment,” stated Oladeji Oluwatola, CFO of AIICO Insurance.
Total assets increased by 11.8% to ₦300.7 billion as of 9M 2023 (FY 2022: ₦269.0 billion) driven mainly by a 9.4% growth in financial assets, which constitutes ca. 82.0% of the total assets.
Total equity increased by 11.3% to ₦44.1 billion as of 9M 2023 (FY 2022: ₦39.6 billion) mainly due to a 30.3% 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.