From Ngozi Onyeakusi, Lagos
AIICO Insurance PLC has announced a gross premium growth of N32.1 billion for its financial results year ended December 31, 2017.
This showed an increase of N5.03 billion or 19 per cent when compared to N27.06 billion recorded in the comparable period of 2016.
Life business grew by 15% from N18.8 billion in 2016 to N21.6 billion in 2017. This growth was driven by the increased popularity of the firm’s traditional life products while ordinary life business grew 29% in 2017 to N16.4 billion from N12.8 billion in 2016.
Non-life business grew from N7.6 billion in 2016 to N8.7 billion in 2017.
“We experienced significant growth as a company in 2017…” said Edwin Igbiti, MD/CEO of AIICO Insurance “We had to significantly increase our capacity and improve our processes to meet up with customer demands. Over the next few years, we have plans to grow our businesses; this means we must invest in technology and people to ensure our processes are more efficient to increase customer service levels.”
Profits after tax however declined to N1.3 billion from N10.2 billion in 2016. Though total comprehensive income increased to a profit of N2.4 billion from a loss of N655 million in 2016.
The decline in profits after tax is due mainly to the decline in gross premium income, While we recognize changes in the value of our liabilities in the income statement, changes in the values of the assets backing these liabilities are recognized in the statement of comprehensive income. This provides a more holistic picture of our performance as a company.