Moses Uwagbale<\/p>\n\n\n
AIICO Insurance has announced that it recorded N60.7 billion as its Gross Written Premium in its audited results for 2020.<\/p>\n\n\n
This is contained in a statement signed by the insurer\u2019s Head of Marketing Strategy and Communication, Mr Segun Olalandu, and made available to newsmen in Lagos on Tuesday.<\/p>\n\n\n
Olalandu said that the N60.7 billion represented 21.3 per cent growth, when compared to the 2019 financial year figure of N50.1 billion.<\/p>\n\n\n
He attributed the growth to continuous investment in the agency\u2019s force, increased focus on partnerships and better relationship with corporates.<\/p>\n\n\n
The spokesman said that the firm recorded an underwriting loss of N36.3 billion in 2020 compared to N7.7 billion in 2019.<\/p>\n\n\n
He hinged the loss on two main factors \u2014 reserving requirements for new policies underwritten in the life business in 2020 and changes in actuarial reserves in the life business for policies written in 2020 and prior years.<\/p>\n\n\n
\u201cThere were significant movements in investment yields which affected the value of liabilities and assets in our life business.<\/p>\n\n\n
\u201cOn the short and long ends of the yield curve, yields declined by about 7.7 per cent and 5.5 per cent respectively in 2020.<\/p>\n\n\n
\u201d The effects of these changes are reflected in the change in life and annuity funds, as well as fair value gains or losses on the income statement.<\/p>\n\n\n
\u201d In addition, changing client preferences mean that there has been a change in our retail product mix.<\/p>\n\n\n
\u201cSome of these products require higher reserving requirements which results in an increase in our liabilities, thereby reducing reported underwriting profits, \u201d he said.<\/p>\n\n\n
According to him, the underwriting performance in the general business also declined due to increased claims in fire because of the civil unrest across the country and special oil lines.<\/p>\n\n\n
Olalandu said that the investment income of the insurer grew by 13.1 percent year-on- year to N11.7 billion in 2020 financial year from N10.4 billion in 2019 financial year from increased assets under management.<\/p>\n\n\n
He said profit before tax from continuing operations declined by 22.6 per cent year-on-year to N4.6 billion in 2020 financial year from N6.0 billion in 2019 financial year.<\/p>\n\n\n
According to him, the drop was due to the lower-than-expected profits in the company\u2019s Life business as a result of higher-than-expected reserving requirements\/low yields.<\/p>\n\n\n
\u201cHowever, our General Insurance and Wealth Management businesses increased their contribution to profits,\u201d he said.<\/p>\n\n\n
Olalandu said that the profit after tax from continuing operations declined by 12.9 per cent year-on-year to N5.0 billion in 2020 from N5.7 billion in 2019 financial year.<\/p>\n\n\n
He said profit for the year declined by 11.1 per cent year-on-year to N5.2 billion in 2020 financial year from N 5.9 billion in 2019 financial year.<\/p>\n\n\n
The spokesman said the company\u2019s total asset increased by 52.4 per cent to N 243.1 billion in 2020 financial year from N159.5 billion in 2019 financial year.<\/p>\n\n\n
According to him, AIICO\u2019s total liability also grew by 59.6 per cent to N 208.4 billion in 2020 financial year from N130.6 billion in 2019 financial year .<\/p>\n\n\n
He said the firm\u2019s total equity increased by 19.9 per cent to N34.7 billion in 2020 financial year from N28.9 billion in 2019 financial year.<\/p>\n\n\n
Mr Babatunde Fajemirokun, Managing Director \/Chief Executive Officer of the insurance company was quoted in the statement to have said that the pandemic caused a questionble global marketplace and led to a global economic upheaval.<\/p>\n\n\n
Fajemirokun explained that the Nigeria economy slipped into its second recession in five years, with the business environment further impacted by incidents of civil unrest.<\/p>\n\n\n
\u201d Despite these unprecedented macroeconomic disruptions, AIICO grew its total assets by 52.5 per cent in the year under review.<\/p>\n\n\n
\u201d We delivered sound results having taken decisive early actions to protect our workforce, improve our financial strength, streamline operations and reinforce our distribution strategy .<\/p>\n\n\n
\u201d Over the past 5 years, we invested substantially in human capital and technology to significantly elevate our customer experience.<\/p>\n\n\n
\u201d This resulted in our gross written premiums growing 23.6 per cent year-on-year despite restrictions caused by the pandemic, \u201d he said.<\/p>\n\n\n
According to the managing director, the company\u2019s financial position remains strong, inspiring confidence in its ability to assume the risks it\u2019s customers wishes to transfer.<\/p>\n\n\n
Fajemirokun said the insurer\u2019s investors showed their commitment, as its rights issue announced in September 2020 was oversubscribed by about 26 per cent .<\/p>\n\n\n
He noted that the capital was deployed judiciously, generating risk-adjusted returns for its shareholders and ensuring that it continue to keep its promises.<\/p>\n\n\n
AIICO Insurance is a leading composite insurer in Nigeria with a record of serving clients for over 50 years.<\/p>\n\n\n
Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services to create and protect wealth for individuals, families, and corporate customers.<\/p>\n\n
Moses Uwagbale AIICO Insurance has announced that it recorded N60.7 billion as its Gross Written Premium in its audited results for 2020. This is contained in a statement signed by the insurer\u2019s Head of Marketing Strategy and Communication, Mr Segun Olalandu, and made available to newsmen in Lagos on Tuesday. Olalandu said that the N60.7 […]<\/p>\n","protected":false},"author":1,"featured_media":11553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125,126],"tags":[676],"class_list":["post-29422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-money","category-trade-and-industry","tag-aiico","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n