Net premium income of AIICO Insurance Plc, a key player in the Nigerian insurance industry, appreciated in double-digit at 14 percent in full year 2018, triggered by more than 25 percent rise in life business, which accounted for 64 percent of its gross premium written.
The insurer posted N31.9 billion as net premium income in the review period, an uptick from N27.9 billion reported in the previous year. Net underwriting income trended northwards by 15 percent to N34.8 billion in the review period driven by elevated income from insurance contracts, pension and other contracts.
The insurer was able to overturn an underwriting loss of N4.02 billion posted in full year 2017, to a profit of N3.21 billion, even as profit before taxation appreciated by 15 percent to N3.49 billion in the review period, an uptick from N3.04 billion posted in the prior year, while post-tax profit skyrocketed by 145 percent to N3.15 billion in 2018.
The insurer recommended for shareholders’ approval a final dividend of 6 kobo per share of ordinary 50 kobo each, payable to shareholders’ whose names appear on the Registrars of Members by May 9, 2019.
Earnings per share, which captures the profit allocated to each unit of common stock, appreciated by 25 kobo to 35 kobo in the review period.
Total assets of the insurer appreciated by 19.4 percent to N109.9 billion in 2018, thanks to increase in cash & cash equivalents, financial assets, reinsurance assets and property & equipment among others, while shareholders’ fund hit N14.5 billion, representing 37.7 percent increase over N10.6 billion posted in the preceding year.
AIICO Insurance Plc specializes in pension and asset management, general and health insurance, annuity and life assurance, serving corporations, individuals, financial institutions and government in the country.
Shares of the insurer gained 2.74 percent last Thursday to 0.75, outperforming the financials industry and insurance sector that lost 0.24 percent and 0.12 percent respectively. The insurer has returned 19 percent since the start of 2019.
ISRAEL ODUBOLA
