AIICO Insurance sees premium rise 24% to N56.4bn in H1’23

By Cynthia Ezekwe.

AIICO Insurance Plc has recorded a  gross premiums written of N56.404 billion in its unaudited results for the first half (H1) of the year ended 30 June 2023, marking a significant increase from N45.5 billion it recorded in the first half of 2022.

The insurance company, in its half year unaudited financials disclosed that the Group’s  revenue increased 22.0 per cent year-on-year to N27.9 billion from N22.9 billion in 2022.

According to AIICO, under the IFRS 4 standard, premiums written grew 24.0 per cent to N56.4 billion  against N45.5 billion in H1 2022, while  insurance service result, which is insurance revenue less expenses, appreciated 175.9 per cent year-on-year to N6.9 billion in H1, 2023, driven by the increase in revenue during the first half of the year.

The risk underwriting and non-financial services provider noted that its total income or net insurance and investment result grew 47.0 per cent to N12.2 billion from N8.3 billion in H1, 2022, as a result of the increased income and the exchange rate effects of the devaluation of the naira on our foreign exchange holdings.

The company’s profit before income tax from continuing operations increased 117.9 per cent to N5.8 billion in H1 2023, an increase from N2.7 billion achieved in H1, 2022, driven by  improved asset-liability management and risk selection, especially in its corporate business, which has reduced the volatility of the company’s financial position.

The  total assets increased by 7.0 per cent to N293.7 billion as of H1, 2023 as against N274.6 billion recorded in full year, 2022, driven mainly by a 6.6 per cent growth in financial assets, which constitutes 81.9 per cent of the total assets, while its  total equity increased by 10.0 per cent to N48.1 billion as of H1, 2023 compared to N43.7 billion in full year 2022.

Commenting  on the results,  Babatunde Fajemirokun,  the managing director and chief executive officer of AIICO Insurance, said: “our resilience and dedication reinforce our ability to maintain the trust of our valued customers, despite the prevailing economic challenges in the first half of 2023. Our performance stands as a testament to the sustainability of our business model and the successful execution of our strategic investments.’’

“As we work towards realizing our vision, our approach is to strengthen our market position, expand our product offering and leverage technology in our ambition to become a well-rounded consolidated group,” Fajemirokun added.

Oladeji Oluwatola, the chief financial officer (CFO) of AIICO Insurance, noted the implementation of IFRS 17 in the insurance industry has marked a notable shift, impacting not only financial reporting practices but also how stakeholders evaluate the financial performance and risk management of businesses.”

According to him, the updated accounting standard provides investors with a more precise means of assessing the industry, enabling them to make informed decisions and comparisons across various institutions.