By Henry Uche
AIICO Insurance Plc has announced a remarkable profit after tax (PAT) of N12 billion for the financial year ending December 31, 2023, representing a substantial increase from the N5.2 billion recorded in the previous year. The 132.6% surge in profitability was revealed during the company’s 54th annual general meeting held recently in Lagos, where shareholders were updated on the firm’s robust financial performance.
Chairman of AIICO, Mr. Kundan Sainani, attributed the significant profit growth to the meticulous execution of the company’s business strategy, which also led to a gross written premium of N110.1 billion for the year, up from N88.3 billion in 2022. The transition to the IFRS 17 accounting standard played a crucial role in this achievement, allowing the recognition of insurance revenue at approximately N72.6 billion, compared to N54.8 billion under IFRS 4 in the previous year. This change underscores AIICO’s commitment to transparency and sound financial practices.
Despite facing numerous challenges, including a high monetary policy rate, rising inflation, the removal of fuel subsidies, forex scarcity, and the pressures of the 2023 Fiscal Bill, AIICO demonstrated resilience and adaptability. Mr. Sainani emphasized the company’s ability to thrive in a challenging economic environment, delivering impressive revenue and profit growth. He reiterated AIICO’s readiness to provide more favorable terms to customers and to strategically invest in opportunities for advantageous returns.
Managing Director and Chief Executive Officer, Mr. Babatunde Fajemirokun, reassured shareholders of continued high value and promising returns on investment. He noted that the board and management are considering allocating a larger portion of future profits to dividends, enhancing shareholder value.
The annual general meeting also marked the election of Mrs. Kemi Adewole as an Independent Non-Executive Director and the welcoming of Mr. Gbenga Ilori as an Executive Director. Shareholders expressed appreciation for the company’s strong financial fundamentals and growing asset base. Dr. Alex Adio, a shareholder, lauded AIICO for its consistent dividend payments and encouraged the board to increase the dividend payout in the coming year. Additionally, Dr. Anthony Omojola praised the company’s share buy-back scheme, highlighting its potential to boost earnings per share and enhance share value.
AIICO Insurance, a leading composite insurer in Nigeria, has a 60-year history of providing high-quality services. Established in 1963, the company offers life and general insurance, health insurance, and investment management services, aiming to create and protect wealth for individuals, families, and corporate clients.