Gross Written Premiums (GWPs) of AIICO Insurance Plc jumped to N31.9 billion, representing an increase of up 26 per cent from the same period in 2019 which stood at N25.4 billion, as the firm announced its half year financial report.
According to AIICO, in a statement made available to Abeyanews, this growth was driven by sustained positive performance across the major lines of business of the Group.
The Group’s Shareholders’ funds increased by 9.39 per cent from N27.9bn in 2019 to N30.5 billion, driven by the Group’s earnings for the period and its strong matching of long term asset and liabilities, despite volatile yields along the yield curve.
However, the profit before tax (PBT) reduced by 28 per cent to N2.17bn, compared to N3.01bn in Q2, 2019.
The reduction was as a result of changes in product mix in the Retail Life business due to changes in clients’ preferences. These product preferences were however impacted by the lower interest yield environment – leading to a 71 per cent increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund).
Commenting on the Half Year financial report, Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun, explained that operational resilience and strategic marketing, among others, helped lift its brand in meeting with the challenging times.
This is just as the AIICO boss expressed optimism for a better concluding half of the financial year 2020.
“Besides our operational resilience and strategic marketing within the period, our brand equity, advanced level of automation and business continuity plans enabled us to quickly adjust our business model to meet the emerging demands of the low touch economy, triggered by the global pandemic. The strong committed relationship we have built with our customers continue to endear them to us for repeat business, new businesses and referrals.
“As the local and global economies gradually recover from the impact of the pandemic, we will seize opportunities for continuous growth. Our response strategy includes product innovation, technology-enabled operating and distribution models, and unparalleled customer experience. We remain optimistic that the second half of 2020 will be better.
“AIICO’s profitable outcomes amid general uncertainties, challenging macro-economic and highly competitive business environment is a clear indication that it remains an insurer of choice and is well positioned for long-term market leadership,” he said.