Emmanuel Ochayi
AIICO Insurance Plc is set to record growth in 2024, with the company forecasting a pre-tax profit of N17.6 billion, which marks a 46% increase from the N12 billion posted in the 2023 financial year.
The company’s growth trajectory is driven by its strong first-half performance in 2024, as it looks to solidify its place in Nigeria’s insurance industry.
Join our WhatsApp ChannelAIICO Insurance Reports Impressive 2024 H1 Performance
AIICO Insurance achieved a remarkable result in the first half of 2024, reporting a pre-tax profit of N14.4 billion.
This figure represents a 98% year-on-year increase from N7.3 billion recorded in the same period in 2023.
The company also highlighted its claim payments, noting that N42.5 billion was spent on claims and other insurance service expenses during the period.
Mr. Babatunde Fajemirokun, AIICO Insurance’s Managing Director, expressed optimism about the company’s future, stating, “Our first-half results demonstrate the strength of our business model and the effectiveness of our strategies. We are focused on delivering value to our shareholders and policyholders, and we remain committed to maintaining this momentum.”
Gross Written Premium and Revenue Forecasts
For the 2024 financial year, AIICO Insurance is projecting a gross written premium of N141 billion, reflecting a 29% growth from N109.4 billion recorded in 2023.
Additionally, the company is forecasting a 27% increase in insurance revenue, expecting it to reach N90.8 billion from N71.6 billion in 2023.
READ ALSO: Equity Market Records Positive Close As Stocks Show Mixed Performance
The company’s insurance service gain is also expected to improve significantly, with a projected gain of N3.45 billion in 2024, a sharp contrast to the N1.62 billion loss recorded in 2023.
Fajemirokun added, “We are particularly pleased with the turnaround in our insurance service results. The projected gains for 2024 reflect our efforts to optimise our operations and enhance profitability.”
AIICO’s Life and General Business Segments
AIICO Insurance continues to perform well across both its Life and General Business segments. In the first half of 2024, the company posted insurance revenue of N23.9 billion from its Life Business, while its General Business segment brought in N24.3 billion.
However, the company reported an N871 million loss in its General Business, whereas its Life Business posted a gain of N2.3 billion.
Dividend Growth Anticipated
In the 2023 financial year, the company paid a dividend of 5 kobo per share, representing a 15.2% dividend payout ratio.
With the company’s net income projected to grow by 39% in 2024, reaching N16.7 billion, there is a strong likelihood that AIICO will increase its dividend payout in the coming year.
Financial analyst, Mrs. Ngozi Olayemi, commented on AIICO’s performance, saying, “AIICO Insurance has shown resilience and consistent growth. Shareholders can look forward to increased returns, especially with the projected boost in net income.”
Significant Claims Payments Continue
AIICO Insurance has established itself as a leading company in claims payments. In 2023, the company paid out a total of N68.3 billion in claims, with 63% of those claims made in the second half of the year.
The first half of 2024 saw AIICO report a 70% year-on-year growth in claims payment, and it is projected that the company could pay out as much as N100 billion in claims by the end of 2024.
Between 2019 and 2023, AIICO paid out a total of N236 billion in claims, marking the highest spend on claims by any insurance company listed on the Nigerian Exchange (NGX) during that period.
Positive Outlook for 2024
AIICO Insurance is projecting a net cash inflow of N23 billion from its operating activities in 2024, with a significant portion of this amount expected to come from premiums received.
The company’s growth in claims payments and operating income signals a promising year ahead, with management optimistic about achieving its financial targets.
Fajemirokun concluded, “We are well-positioned to continue our upward trajectory in 2024, and we remain focused on delivering value to our stakeholders.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
