AIICO to Realise N2.9 Billion in Profit in Nine Months Ended September 2022

AIICO Insurance Plc has projected a gross written premium of N63.333 billion from January to September 2022.

Investors King observed from the company’s earnings forecast signed by the Managing Director (MD), Babatunde Fajemirokun, that the leading insurance company expected to generate a net premium income of N51.938 billion, while the commission received is estimated at N1.747 billion, bringing the total insurance income to N53.685 billion.

AIICO forecasts net claims incurred to be N34.096 billion, while the underwriting expense (commission and maintenance) is estimated to be N7.190 billion. Change in life fund on the other hand would peak at N12.092 billion, according to this projection.

For underwriting costs, the company expected to spend a total of  N53.378 billion in the period.

Profit before tax was estimated at N3.177 billion while the profit after tax for the 9 months prediction is N2.995 billion.

AIICO further estimates Profit from discontinued operations at N3.389 billion while profit after discontinued operations would be N6.385 billion.

The insurance firm explains that the Non-Life business represents 28% of the stated GWP while the Ordinary Life, Group Life and Annuity businesses represent 53%, 11% and 8% respectively.

Further, investment income will be driven mainly by bond investments and investments in other short-term financial assets.

Likewise, the reinsurance expenses is projected at an average of 12% of the projected gross written premium.

AIICO’s further estimations include:

• Cash and cash equivalents – Opening N25,490 billion
• Cash and cash equivalents – Closing N25,495 billion