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- Reiterates commitment to customer satisfaction
By Henry Uche, Lagos
AIICO Insurance Group, one of Nigeria’s leading insurance companies, has announced a 28.1% year-on-year increase in group revenue to ₦14.8bn for Q1 2023, up from ₦11.5bn in the same period last year. The company also reported a 28.7% growth in premiums written to ₦31.7bn under the IFRS 4 standard.
The insurance service result, which is the insurance revenue fewer expenses, increased by 318.0% to ₦1.95bn in Q1 2023, up from ₦466m 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 ₦4.7bn compared to ₦4.5bn in Q1 2022.
While profit before income tax from continuing operations declined by 12.3% to ₦1.4bn in Q1 2023 compared to ₦1.6bn 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% to ₦280.6bn, driven mainly by an 87.7% growth in cash and cash equivalents, constituting approximately 10.6% of the total assets. Total liabilities also increased by 2.2% to ₦236.0bn due to a 21.8% growth in fixed income liabilities relating to the company’s non-pension asset management business. Total equity increased by 1.9% to ₦44.6bn, mainly due to a 5.3% increase in retained earnings to ₦16.1bn as of Q1 2023.
AIICO Insurance’s Chief Financial Officer(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.
“More so, 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,” he affirmed.
