The board of AIICO Insurance Plc, on Thursday reported a three-digit rise in net profit for the year ended December 31, 2016, despite the N5.854bn or 18% decline in gross premium written, following which basic Earnings Per Share rose 717% up to 147 kobo from 18 kobo in the corresponding period of 2015.
The board has however recommended a two kobo dividend, up from 0.02 kobo in the corresponding period of 2015.
According to the report, gross premium written fell to N27.064bn from N32.918bn in 2015, with gross premium income of N30.029bn, up N19.618bn or 188% from previous year’s N10.41bn.
Reinsurance expenses of N3.341bnm, slightly lower that the previous N3.662bn, brought Net premium income to N26.687bn, up by N19.939bn or 295% from N6.748bn; while fees and commission income in the form of insurance contract of N782.349m from N782.349m and N1.334bn from pension and other contracts, as against the previous N1.355bn, raised net underwriting income to N28.804bn from N8.848bn in 2015.
Gross claims expenses for the year stood at N14.94bn from N13.045bn; while a negative ‘claims expenses recovered from reinsurer’ of N1.844bn, down from N2.377bn, left net claim expenses rose at N13.096bn from N10.667bn, an increase of about 23%. Total underwriting expenses rose to N16.356bn from N14.347bn in 2015; just as underwriting profit for the year stood at N12.448bn from N5.498bn.
The figure was further enhanced by investment income of N7.249bn, as against the prior year’s N5.717bn, which was enough to take care of the N2.617bn personnel expenses, up from N3.039bn; and ‘other operating expenses’ of N5.119bn. These, among others, brought profit before tax to N11.835bn, up by N10.035bn or 558%. Income taxes of N1.533bn, up from N557.68m in 2015 resulted in after tax profit of N10.238bn, an improvement by about N9.042bn or 756% from N1.195bn.