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AIICO Insurance Group has announced a 28.1 per cent Year-on-Year (Y-o-Y) increase in group revenues to ₦14.8 billion for first quarter 2023, up from ₦11.5 billion in the same period last year.
The company said it also reported a 28.7 per cent growth in premiums written to ₦31.7 billion under the IFRS 4 standard.
The insurance service result, which is the insurance revenue less expenses, increased by 318.0 per cent to ₦1.95 billion in Q1 2023, up from ₦466 million in Q1 2022, primarily due to the increase in revenue during the quarter. As a result, the total income, or net insurance and investment, grew by 4.9% to ₦4.7 billion compared to ₦4.5 billion in Q1 2022, it submitted.
AIICO maintained that while profit before income tax from continuing operations declined by 12.3 per cent to ₦1.4 billion in Q1 2023 compared to ₦1.6 billion in FY 2022, AIICO Insurance’s continuing operations have benefited from improved asset-liability management and risk selection, especially in its corporate business. This has reduced the company’s financial position volatility, which is expected to persist over time.
Total assets increased by 2.2 per cent to ₦280.6 billion, driven mainly by an 87.7 per cent growth in cash and cash equivalents, constituting approximately 10.6 per cent of the total assets. Total liabilities also increased by 2.2 per cent to ₦236.0 billion due to a 21.8 per cent growth in fixed income liabilities relating to the company’s non-pension asset management business. Total equity increased by 1.9 per cent to ₦44.6 billion, mainly due to a 5.3 per cent increase in retained earnings to ₦16.1 billion as of Q1 2023.
AIICO Insurance’s CFO, Oladeji Oluwatola, commented on the new IFRS 17 standard for insurance reporting: “The new reporting standard heralds a shift, not just in how we report, but how investors and analysts should examine the fundamentals of a sustainable insurance business.” In addition, the new standard will enable the investing public to compare results between firms better, regardless of their business model or the types of products they sell.
