AIICO sees full-year profit more than double to N12bn

AIICO Insurance Plc, an insurer in Nigeria, has continued its strong growth trajectory recording a profit after tax of N12 billion for the financial year ended December 31, 2023, up from the N5.2 billion posted in 2022.

Disclosing these shareholders at the 54th annual general meeting of the company in Lagos, Kundan Sainani, chairman of the board noted that the profit after tax increased by 132.6 percent.

Sainani further disclosed that the year 2023 produced other significant gains for the company because of the meticulous execution of its business strategy, resulting in a gross written premium of N110.1 billion during the review year as against N88.3 billion in 2022.

The result, according to him, was achieved as the company transitioned from using IFRS 4 to IFRS 17 standard, which resulted in the recognition of insurance revenue of about N72.6 billion from N54.8 billion in 2022, demonstrating the company’s commitment to transparency and robust financial practices.

The AIICO chairman said these results were achieved amid serious socio-economic challenges typified by increases in monetary policy rate, inflation, removal of fuel subsidy, forex scarcity, and the 2023 Fiscal Bill, all of which contributed to the rise of domestic prices.

“Despite this unsettling landscape, 2023 was another strong year for AIICO, with the firm generating impressive record revenue and substantial growth. Our profits for the period increased by 132.6 percent to N12 billion from N5.2 billion in 2022, reflecting strong underlying performance across our businesses”, he said.

Referencing the dynamics in the economy and projecting into the future, Sainani said AIICO remains resilient and adaptable, ready to provide more favourable terms to its valued customers and strategically invest in opportunities that yield advantageous returns.

On his part, Babatunde Fajemirokun, AIICO’s managing director/CEO, assured the shareholders of high value and better returns on investment in the years ahead.

Fajemirokun said both the board and management were considering devoting a bigger chunk of future profits to dividend payments.

Other major highlights of the annual general meeting included the election of Kemi Adewole to the board of AIICO as an Independent Non-Executive Director and the official welcome of Gbenga Ilori as an executive director.