Shareholders of AIICO Insurance Plc., on Friday commended the firm for recording N7.55 billion profit after tax in 2022 financial year, as against N4.92 billion achieved in 2021.
They gave the commendation at the company’s 53rd Annual General Meeting (AGM) in Lagos.
The National Coordinator, Independent Shareholders Association of Nigeria, (ISAN), Mr Moses Igbrude, also commended the company’s financial performance, especially amid the enormous challenges in the country.
Igbrude lauded the firm for declaring three kobo dividend payout, while urging it to do more on insurance education.
According to him, this will make more policyholders to get more profits and return on investment to the shareholders.
Another shareholder, Mr Adebayo Adeleke, Managing Director, Lancelot Ventures Ltd., urged the management of the firm to bring more prospective customers on board through the deployment of robust technology.
He told the underwriter to leverage its funds to invest in opportunities created by deregulation policies of the Federal Government.
In his address, Chairman of AIICO, Mr Kundan Sainani, said the firm’s Gross Premium Written (GPW) stood at N88.28 billion as at Dec.31, 2022, compared to N71.63 billion recorded in 2021.
Sainani said the insurance company’s Gross Premium Income (GPI) for the year under review was N74.03 billion, as against N61.1 billion achieved in the previous year.
He stated that the company’s net claims payment was N44.99 billion in 2022, contrary to N39.91 billion expended in the previous year.
According to him, the firm’s total assets in the year under review was N270.33 billion, total equity was N45.01 billion, while shareholders’ fund was N44.59 billion.
On dividends to shareholders, the chairman stated that the company’s approach to capital allocation had not changed.
Sainani added that the underwriting firm had to manage the tension between reinvesting in its businesses and returning cash to shareholders, while keeping regulatory and economic capital constraints in view.
“To manage these tensions and in recognition of the importance of returning cash to shareholders, the company has a dividend policy that stipulates a percentage of profits to be returned to shareholders, whenever possible.
“In the 2021 fiscal year, the company returned a dividend per share of two kobo to shareholders, considering our constraints.
“This year, the company is happy to announce that it is proposing a dividend of three kobo per share to shareholders, a 50 per cent rise from the payout in the last year.
“The company’s management has determined that subject to economic capital targets, this sum represents the optimal cash transfer to shareholders, based on the 2022 full year performance,” he said.
The chairman explained that the company recorded impressive revenues and growth in shareholders’ value in 2022, adding that the achievement was part of its effort to improve engagement with shareholders and the investment community.
He stated that the group’s insurance business remains its flagship business, generating the bulk of profits for the group.
“In year 2022, the non-life and HMO businesses increased their contributions to profit, leading to an 81.2 per cent increase in profit before tax at group level to N5.1 billion from N2.8 billion in 2021,” he said.
According to him, the insurance company, in 2022, completed the sale of AIICO Pensions to FCMB Group, a process that began in 2021
Sainani stated that the company recognised an additional gain of about N2.9 billion from the sale of this subsidiary, leading to total profits after discontinued operations rising 53.6 per cent to N7.6 billion from N4.9 billion in 2021.
He said that the gain on sale of the subsidiary across the two years 2021 and 2022, in total, was N5.2 billion.
AIICO Insurance is a composite insurer in Nigeria, founded in 1963 to provide life, general and health insurance and investment management services to create and protect wealth for individuals, families and corporate customers.
