AIICO Insurance plc in the financial year ended December 31, 2013 recorded gross premium written income of N23.6 billion, a growth of 11 percent while net income also inched up by 13 percent to close at N18.2 billion, a performance that show strong ability for income generation.
Despite the growth in net premium, the Company recorded a loss of N739 million in the in the period under review due to write-offs and impairments.
The write-offs and impairments were necessitated by a need to strengthen its balance sheet, its business model and build on AIICO’s competitive advantages in this rapidly changing operating environment, the company said.
AIICO is a group of companies offering life, non-life insurance, pension management, health insurance and asset management.
The growth in premium it noted was impressive given the environment in which these growth levels were achieved as 2013 was a year in which the revenue generating ability of insurance operators significantly dropped following implementation of the “No Premium No Cover policy” policy in the industry.
The policy which has been largely commented required that insurance companies only recognize revenues materially on a cash-and-carry basis, a policy which has changed the face of insurance business for good.
This performance, according to the company shows its ability to generate revenue and a further validation of the strength of the AIICO franchise.
AIICO Insurance plc is the market leader in Life assurance and annuity services market. AIICO is the second largest insurer in Nigeria by gross premiums and has maintained a top three position over the last five years.
Modestus Anaesoronye
