AIICO Insurance Plc, has announced its gross written premium for the second quarter of 2020 increased by 26 per cent, to N31.9 billion from N25.4 billion recorded in 2019 .
The underwriter also disclosed that its group’s shareholders’ funds increased by 9.39 per cent from N27.9 billion in 2019, to N30.5 billion noting it was 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.
According to the result, the group’s profit before tax (PBT) declined by 28 per cent to N2.17 billion, compared to N3.01 billion in the second quarter of 2019. The firm explained the reduction was due to 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),” the company noted.
Commenting on this performance, the Managing Director, Babatunde Fajemirokun, attributed its growth to sustained positive performance across the major lines of business of the Group.
“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, Fajemirokun said. He added that AIICO’s profitable outcomes amid general uncertainties, challenging macro-economic and the highly competitive business environment is a clear indication that it remains an insurer of choice and is well positioned for long-term market leadership.