AIICO Insurance Plc has reported gross premiums written of N56.404 billion in its unaudited results for the first half (H1) of the year ended 30 June 2023.
The insurance company, in its half year results released on Nigerian Exchange (NGX) Limited, revealed that, Group revenues increased 22.0 per cent year-on-year to N27.9 billion from N22.9 billion in 2022.
Under the IFRS 4 standard, premiums written grew 24.0 per cent to N56.4 billion as against N45.5 billion in H1, 2022, while insurance service result, which is insurance revenue less expenses increased 175.9 per cent year-on-year to N6.9 billion in H1, 2023 due mainly to the increase in revenue during the first half of the year.
Total income or net insurance and investment result grew 47.0 per cent to N12.2 billion from N8.3 billion in H1, 2022, as a result of the increased income and the exchange rate effects of the devaluation of the naira on our foreign exchange holdings.
Profit before income tax from continuing operations increased 117.9 per cent to N5.8 billion in H1 2023, higher than N2.7 billion achieved in H1, 2022. The company’s continuing operations have benefited from improved asset-liability management and risk selection, especially in its corporate business, which has reduced the volatility of the company’s financial position.
Meanwhile, total assets increased by 7.0 per cent to N293.7 billion as of H1, 2023 as against N274.6 billion recorded in full year, 2022, driven mainly by a 6.6 per cent growth in financial assets, which constitutes 81.9 per cent of the total assets.
Also, total equity increased by 10.0 per cent to N48.1 billion as of H1, 2023 compared to N43.7 billion in full year 2022.
Speaking on the results, the managing director and chief executive officer of AIICO Insurance, Mr. Babatunde Fajemirokun said: “our resilience and dedication reinforce our ability to maintain the trust of our valued customers, despite the prevailing economic challenges in the first half of 2023. Our performance stands as a testament to the sustainability of our business model and the successful execution of our strategic investments.
“As we work towards realizing our vision, our approach is to strengthen our market position, expand our product offering and leverage technology in our ambition to become a well-rounded consolidated group.”
Also, the chief financial officer (CFO) of AIICO Insurance, Oladeji Oluwatola stated that, “the implementation of IFRS 17 in the insurance industry has marked a notable shift, impacting not only financial reporting practices but also how stakeholders evaluate the financial performance and risk management of businesses.”
According to him, this updated accounting standard provides investors with a more precise means of assessing the industry, enabling them to make informed decisions and comparisons across various institutions.
“In half year ended 30 June 2023, our profit before taxes from continued operations rose by 117.9 per cent to N5.8 billion from N2.7 billion in H1 2022, driven by increased profit in both our company and subsidiary businesses,” he stressed.
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