Insurance

AIICO Insurance posts N25.4bn gross written premium in half year 2019

From left: Head, Strategic Marketing & Communications, AIICO Insurance Plc, Segun Olalandu; Divisional Head, Shared Services, Olusanjo Shodimu; Executive Director/Chief Operating Officer, Babatunde Fajemirokun; Head, Corporate & Institutional Business, Adewale Kadri and Chief Financial Officer, Oladeji Oluwatola at the event.

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Chuks Udo Okonta

The Executive Director/Chief Operating Officer, AIICO Insurance Plc, Babatunde Fajemirokun, today said AIICO Group reported Gross Written Premium (GWP) of ₦25.4 billion, in half year 2019, as against N19.2 billion achieved the same period in 2018 indicating an increase of 32 per cent.

Fajemirokun, who said this at a press conference in Lagos, noted that the growth was driven by continued solid performance across the major lines of business of the group: life and corporate & institutional businesses.

“This performance is a demonstration of a focused implementation of our renewed strategy, notwithstanding the challenging operating environment,” he said.

He posited that in line with the renewed strategic aspirations for market leadership with focus on profitable growth, the company recorded a 42 per cent increase in Profit before tax (PBT) of N3.11 billion, compared to N2.19 billion in H1 2018. Profit after tax (PAT) also grew by 52 per cent to N2.94 billion, compared to N1.93 billion attained in H1 2018.

Speaking further, Fajemirokun said, “customer-centric product innovations, sustained investments and automation of our agency salesforce continues to yield dynamic results as we recorded strong growth in our retail life business, which grew by 47 per cent to N15.5bn (H1 2018: N10.6bn); and an increase of 14 per cent in our corporate and institutional business to N9.5bn (H1 2018: N8.2bn).

“Within the period under review, the Group’s balance sheet improved with total assets growing by 24 per cent to N135 billion compared to N109 billion in Dec 2018. Also, noteworthy, is the growth in shareholders’ funds, which rose by 14 per cent to N16.6 billion (Dec 2018: N14.5 billion).”

Commenting on the new capital requirements for the insurance industry, he said “AIICO has put adequate strategies in place that will ensure we not only meet the new capital requirement for a composite underwriter but also surpass same with sufficient solvency margins.

“Going into the second half of the year, we remain committed to the execution of our strategic objectives whilst staying focused on our primary purpose of protecting our customers and delivering superior returns to shareholders. As we look to the future, we remain guided by our mandate to provide shared protection to every family and business, so they can live life with confidence amidst uncertainty.”

From left: Executive Director/Chief Operating Officer, AIICO Insurance Plc, Babatunde Fajemirokun; Head, Corporate & Institutional Business, Adewale Kadri and Head, Technical, Retail Business Division, Titilola Okunlola at the event.

Head, Technical, Retail Business Division of the underwriting firm, Titilola Okunlola, said the company recently unveiled a products – AIICO’s Moneywise Term Assurance, which according to her is a life cover that guarantees 100 per cent cash back to policyholders when policy elapses without claims.

“This provides our customers with a win-win situation: financial protection for your loved ones within the duration of the policy, if life happens or full refund of premiums should the policyholder survive the period,” she said.

She identified the features and benefits of the product to include, guaranteed payment of the sum assured; Flexible policy tenure between 5 – 20 years; Affordable premium; Cover amount is determined by policyholder; Convenient premium payment options; monthly, quarterly, semi-annual, annual or single premium payment and Premium payments certificates can be used for tax relief, among others.

From left: Chief Financial Officer, AIICO Insurance Plc, Oladeji Oluwatola; Divisional Head, Shared Services, Olusanjo Shodimu; Executive Director/Chief Operating Officer, Babatunde Fajemirokun at the event.

The firm’s Head, Corporate & Institutional Business, Adewale Kadri, also spoke on another innovative products unveiled by the company – AIICO’s Travel Insurance, which covers local and international trips.

According to him, “In this season of summer holidays, we will like to inform the public of AIICO’s World Travel Insurance, which has a cover with benefits of up to $200,000:
Highlights of cover include: Loss or theft of baggage; Emergency medical expenses; Medical Evacuation, Repatriation or Transport to Medical Centre Expenses and Follow up treatment in Nigeria and lots more”

He noted that AIICO’s Schengen cover offers more than the Embassy standard requirement cover of €30,000.

From left: Head, Strategic Marketing & Communications, AIICO Insurance Plc, Segun Olalandu; Chief Financial Officer, Oladeji Oluwatola and Divisional Head, Shared Services, Olusanjo Shodimu at the event.

On AIICO’s Domestic Air Travel Insurance, he said the policy which was recently approved by the National Insurance Commission (NAICOM) is basically for the personal benefits of the air passengers entitling them to compensation for death, permanent disability, medical expenses consequent on accident, flight cancellations and baggage loss or delay as defined by the policy.

He maintained that the policy is not a substitute for the obligations of the Airline Operators to their passengers as provided by the Nigeria Civil Aviation Laws and Regulations, but only a benefit policy an individual passenger can take for his or her own comfort.

Speaking on the scope of cover, he noted that the policy provides compensation to airline passengers on local routes (travelling within Nigeria) who purchase flight tickets and pay the requisite premium against losses covered.

He posited that the cover is basically for passengers with valid airline ticket with the undernoted variations: Free cover for one accompanying infant (below age two years) who is named in the confirmation slip, adding that this free coverage is limited only to Personal Accident benefit for up to N100,000.00.

Kadri, said Children between the ages of 2 to 12 years will have 50 per cent benefit and therefore pay 50 per cent premium, stressing that this provision is also limited to personal accident.

He noted that the domestic standard provides coverage from the check in time up to landing at the airport of final destination.

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