AIICO Insurance Plc, on Friday presented its audited financials for the year ended December 31, 2017, indicating a return to profit, amidst a 19% growth in gross premium written.
This resulted in total comprehensive profit for the year of N2.405bn, as against the previous year’s N655.054m loss, following which the directors have proposed a dividend of 5 kobo per share, as against previous year’s two kobo. The dividend is payable to shareholders whose names appear in the register of member as at the close of business on Monday, May 18, 2018, which is the qualification date. Closure of register is from May 21 to 23, while the dividend will be paid on May 25, 2018, subject to approval at the annual general meeting the day before.
Gross premium written for the period increased by N5.033bn or 19% to N32.097bn from N27.064bn; while gross premium income fell to N21.291bn from N30.029bn, representing a decline of N8.737bn or 29%.
A slight rise in reinsurance expenses to N3.3.79bn, as against the previous N3.341bn, left net premium income dropping by N9.186bn or 34% to N17.5bn, as against the previous N26.687bn; just as net claim expenses rose from N13.096bn to N20.774bn, a N7.677bn or 59%.
Net underwriting income fell to N19.857bn from N28.804bn, helped by the growth in pension and other contracts of N1.61bn from N1.334bn, and insurance contract from N783.349m from N746.084m.
Gross claims expenses climbed to N23.273bn from N14.94bn, even as claims expenses recovered from reinsurer increased from N1.844bn to N2.499bn; resulting in net claims expenses of N20.774bn from N13.096bn.
Underwriting expenses of N3.105bn from N3.26bn resulted in total underwriting expenses of N23.879bn, up from N16.356bn; leaving underwriting loss of N4.022bn, as against the profit of N12.448bn in 2016.
Investment income rose to N8.632bn from N7.249bn; profit from deposit administration increased to N212.773m from N141.091m; and net realized gains of N5.338bn from just N335.799m. Personnel expenses grew slightly to N2.944bn from N2.617bn; and other expenses at N4.936bn, down from N5.119bn.
Profit before tax stood at N3.04bn, down by N74% from the N11.835bn reported in the corresponding period of 2016; while profit after tax closed at N1.283bn, down by 87% from N10.893bn; bringing other comprehensive profit to N1.122bn from N10.893bn. Total comprehensive profit for the year therefore came to N2.405bn, which was 467% better than the previous N655.0654m, representing earnings per share of 18 kobo, up from N1.47each.