AIICO Insurance plc has recorded a 23.5 per cent drop in Profit After Tax during the third quarter ended September 30, 2011.
In a report from the Nigerian Stock Exchange(NSE),the unaudited result for the third quarter showed a Profit After Tax of N1.329 billion as against N1.641 billion recorded in comparable period of 2010, representing a decrease of 23.4 per cent.
The company’s Gross Premium grew to N13,507.43 billion from N11,101.6 billion in the comparable period of 2010, representing a marginal increase of 18 per cent. Profit After Tax stood at N1,329.6 million compared to N1,641.63 million in 2010.
The Net Asset Value stood at N11,076.85 billion compared to N14,024.73 billion in December 2010.
The company had paid claims totaling N2.44 billion within the first eight months of 2011 as against N1.4 billion claims paid during the same period in 2010.
The company’s Managing Director, Mr. David Sobanjo, said the payment was in line with keeping faith with its promise to pay all genuine claims promptly.
Sobanjo who stated this while filing questions from newsmen in Lagos recently, assured that the insurance firm would continue to discharge its responsibility in the area of claims payment whenever the need arises.
He explained that out of the total claims of N2.44 billion paid during the eight months period in 2011, over N1.19 billion was paid as claims under General Insurance business while the Life Insurance business accounted for N1.25 billion claims.
The breakdown of the claims paid during the first eight months of the current year from general insurance business showed that N543 million was paid on Motor Insurance, N212 million was recorded on fire insurance, N19.8 million went into claims settlement on Oil & Energy, while N169 million claims was paid on goods in transit class.
Besides, Fire and Special Perils claims amounted to N107. 9 million, Marine paid out N25 million, while claims from Construction All Risks, (CAR) amounted to N26 million, fidelity guarantee accounted for N53 million and N59 million was paid on workmen compensation, among others.
On life insurance business, he stated that about N1.18 billion was paid as death claim from group life insurance while the total claims paid from individual life insurance amounted to about N73.8 million.
Having already paid this quantum of claims during the eight months of the year, he said one could only imagine the total amount that would be paid as claims by the time the year runs out.
Sobanjo assured that the insurance firm was not going to shirk its responsibility in the area of claims payment, pointing out that the company is determined to ensure that its customers get the full benefits of insurance services.
“We recognise the fact that the only credible way we insurers can remain on top of our business is to pay claims as at when due. At AIICO Insurance Plc, our customers are our kings and are treated as such, especially when claims crystallise for payment,” he said.
Sobanjo noted that the company has been making profit without neglecting its duty to clients who have suffered one loss or another, adding that “prompt claims settlement is our culture in our company”.
He reassured brokers, clients and other stakeholders that the underwriting company is being reengineered for better service and more innovative products which will better meet the needs of the insuring public and endear insurance to them.