AIICO Reports 95.6% Growth In Half-Year Net Profit

Directors of AIICO Insurance Plc, on Thursday gave shareholders enough reasons to anticipate juicier returns on investment at year end. That will however depend on the ability of management to sustain the superlative performance recorded in the first half of the year till year-end.
According to the half-year score-card, AIICO reported robust growth in profit, helped by growth in such line items as profit from net realized gains, other operating income and the significant drop in impairment loss on financial assets.
Gross premium written rose 30.16% to N19.296bn from the previous N14.825bn; while gross premium income notched 34.41% from N12.691bn to N17.058bn; and reinsurance expenses increased to N2.658bn, up by 33.2% from N1.995bn.
Net premium income improved by 34.63% from N10.696bn in 2017Q2, to N14.4bn;
Insurance contract rose by 55.99% from N359.79m to N561.238m; pension and other contracts appreciated to N977.95m from N849.483m; net underwriting income stood at N15.939bn from N11.905bn; just as net claims expenses rose 28.85% from N8.872bn to N11.431bn; and underwriting expense from N1.556bn to N1.912bn. Total underwriting expenses increased to N16.532bn, 40.17% increase over the previous half-year’s N11.794bn.
Investment income growth was flat at N4.256bn, compared to the N4.206bn reported in the 2018Q2; even as profit from deposit administration increased to N120.579m from N70.998m. Net realized gains soared by a significant 798.74% to N2.038bn from prior half-year’s N226.796m; just as other operating income jumped 187.56% from N168.7m to N485.11m.
Personnel expenses increased by 22.58% to N1.785bn from N1.456bn; other operating expenses stood at N2.621bn from N2.108bn, representing a 24.33% rise; finance cost rose to N159.993m from N128.43m. Impairment loss on financial assets dropped to N15,000 from N1.278m; resulting in profit before tax of N2.196bn, representing a 92.8% growth over the N1.139bn reported in the prior second quarter.
Although, tax for the period rose by 74.43% to N263.632m from N151.138m, net profit soared by 95.6% from N988.294m to N1.933bn; following which Earnings Per Share increased to 27 kobo from 14 kobo.
Shareholders’ fund also rose 50.79% to N13.435bn from N8.91bn.

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