Insurance

AIICO Insurance leverages agency, brokers to grow insurance market

From left: Head, Non-Life Business, AIICO Insurance Plc, Adewale Kadri; Executive Director, Babatunde Fajemirokun; Managing Director/CEO Edwin Igbiti and Chief Financial Officer, Ayodele Bamidele at the event in Lagos.

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Chuks Udo Okonta

AIICO Insurance Plc says it will continue to leverage close relationship with insurance brokers and agents to grow insurance market premium.

Its Managing Director/Chief Executive Officer Edwin Igbiti, disclosed this on Thursday during a pre-Annual General Meeting (AGM) media briefing in Lagos. He noted that firm will continue to engage with its partners to ensure that it find mutually beneficial ways to work with one another.

He remarked that the firm will internally focus on improving efficiency across it businesses while embedding a culture of rigorous performance management across the organisation, stressing that the firm will also continue to invest in its people to increase human capital. According to him, a motivated workforce will represent the company better to its clients.

Igbiti said the insurer’s underwriting profitability increased from a loss of N5.5 billion to a profit of N12.45 billion across the group driven by slight underwriting improvements in the non life business release of the reserves in the life business.

He noted that due to the reduction in its annuity reserves which is recorded as a decreased in unearned premiums in its income statement and a released to profits, the company recorded a gross premium income of N30 billion in 2016 when compared with N10.4 billion reported in same period of 2015; indicating 188 percent increase.

He maintained that actual investment income appreciated by 27 percent from N5.7 billion in 2015 to N7.2 percent at the end of 31, December 2016.

The AIICO boss maintained that the company’s asset management capabilities continue to be a key strength for the company following its outstanding performance in investment income due to high yield.

He added that profit after tax rose 756 percent from N1.195 billion to N10.2 billion in 2016, while Profit before tax rose to N11.835 billion in 2016 as against N1.799billion achieved in 2015; representing 558 percent increase.

According to him, the firm’s total assets came down by N2.6 billion from N80.1 billion achieved in 2015 to N77.5 billion which he said was due mainly to the reduction in the value of financial income assets and the one time expenses which decreased cash holdings and financial assets.

He said company’s gross premium dropped to N27.1billion in 2016 as against N32.9billion recorded in the financial period of 2015; representing 17. 8 percent largely because of its strategic decision to reduce premiums written in the long term business due to higher market risks

Executive Director of the company, Babatunde Fajemirokun, who is responsible for the firm’s operations, said the firm is eyeing a gross premium income of N30 to N32 billion from 2017 underwriting business.

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