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•We’ll do more –Chairman
By Henry Uche
Shareholders of AIICO Insurance Plc, have applauded the growth trajectory of the firm which recorded N7.55billion Profit After Tax (PAT) in the year 2022, as against N4.92billion achieved in 2021, a 53 percent increase.
Speaking at the company’s 53rd Annual General Meeting (AGM) recently in Lagos, Chairman of AIICO, Mr. Kundan Sainani, told shareholders that the firm’s Gross Premium Written (GPW) stood at N88.28billion in 2022, compared to N71.63billion recorded in 2021, while the Gross Premium Income (GPI) was N74.03billion, as against N61.10billion achieved in the previous year.
Sainani maintained that the company’s net claims payment was N44.99billion in the year under review, contrary to N39.91billion expended in the previous year, while total assets in the stood at N270.33billion; total equity, N45.01billion, and shareholders’ fund, N44.59billion.
On dividend, the company’s approach to capital allocation has not changed, and the firm still had to manage the tension between reinvesting in its businesses and returning cash to shareholders while keeping regulatory and economic capital constraints in view. “To manage these tensions, and in recognition of the importance of Return On Investment (ROI), the company has a dividend policy that stipulates a percentage of profits to be returned to shareholders, whenever possible.
“In 2021 fiscal year, the company returned a dividend per share of 2 kobo to shareholders, considering our constraints. This year, we are proposing a dividend of 3 kobo per share to shareholders, a 50 per cent rise from the payout last year. Subject to economic capital targets, this sum represents the optimal cash transfer to shareholders, based on the 2022 full-year performance,” he said.
He stated that the group’s insurance business remains its flagship business, generating the bulk of profits for the group. “This year, the Non-Life and HMO businesses increased their contributions to profit, leading to an 81.2 per cent increase in profit before tax at group level to N5.1billion from N2.8billion in 2021,” he added. Sainani noted that in 2022, the company completed the sale of AIICO Pensions to FCMB Group, a process that began in 2021, stating that the company recorded an additional gain of about N2.9billion from the sale of this subsidiary, leading to total profits after discontinued operations rising 53.6 per cent to N7.6bn from N4.9billion in 2021.
He added that the gain on sale of the subsidiary between 2021 and 2022 was N5.2billion, as shareholders, board members, and management look forward to another fruitful year ahead, building on the accomplishments and momentum gained. Shareholders including the National Coordinator, Independent Shareholders Association of Nigeria, (ISAN), Moses Igbrude, commended the board and management of the firm for the financial performance and sustained dividend payout.
Reacting, shareholders implored the underwriter to do more on insurance education which would translate to more profits and ROI. They also urged Management to consider onboarding more policyholders through deployment of robust technology; tailored- made products and also leverage its huge fund to invest in opportunities created by deregulation policies of the federal government.
