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AIICO Insurance’s profit rises by N2.718bn on growth in gross premium

AIICO Insurance’s profit rises by N2.718bn on growth in gross premium

Underwriter, AIICO Insurance Plc, has reported an increase in its after-tax profit for Full Year 2019 to the tune of N2.718 billion on the back of a significant rise in its gross premium.

This and other details of its financial performance in the period under review are published in its Fourth Quarter Report 31 December 2019, posted on the website of the Nigerian Stock Exchange (NSE) on Thursday.

Gross Premium Written rose from N37.666 billion at FY2018 to N50.131 billion in the corresponding period of 2019, translating to a 33% increase.

Profit Before Taxation (PBT) leapt by 76%, moving from N3.496 billion at FY2018 to N6.140 billion in the relative period last year.

Profit After Taxation (PAT) grew considerably, climbing up to N5.869 billion in the period under reiew from N3.152 billion at FY2018, signalling an 86% growth.

However, its Total Benefits, Claims and Other Expenses escalated, rising from N37.853 billion at FY2018 to N43.733 billion at FY2019, a 16% increase as a matter of fact.

Similarly, an Underwriting Loss adding up to N6.900 billion was posted at FY2019 compared to an Underwriting Gain of N3.214 billion in the relative period of 2018, representing a negative growth of 315%.

Basic Earnings Per Share (EPS) appreciated by 90.7% from N0.43 at FY2018 to N0.82 at FY2019.

AIICO Insurance was established in Nigeria in 1963 as an agency office of American Life Insurance Company (ALICO). It was listed on the NSE in 1990 following the divestment of its then two principal shareholders – the Federal Government of Nigeria and the American International Group (AIG).

AIICO’s key business lines include health insurance, general insurance, investment management, pension management services, life insurance and annuity, and asset management.

It currently has outstanding shares of 6.93 billion with a  dividend yield of 6.98%.

AIICO Insurance currently trades on the floor of the NSE at N0.86 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After-Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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