Investors on the Nigerian stock exchange market on Monday laud AIICO insurance Plc with higher prices on company’s strong earnings during the period Q2 2019, providing respite for stocks amid market rout.
AIICO’s stock price picked up 5 percent as at the end of trading on Monday pulling up investors’ value per share from a year low of N0.60 to N0.63.
AIICO insurance plc in the second quarter of the year 2019 maintained consistently a 2-year growth in its net income position year on year to record N2.94 billion against N1.93 billion in corresponding period of 2018.
Analysis revealed that the underwriting giant grew its profit after tax (PAT) during the period by 52 percent, although a slower growth when compared to growth recorded in 2016 and 2018 respectively in the last 5 years.
This is on the back of a surge by 43 percent in company’s net premium income to N20.6 billion against N14.4 billion in 2018, driven by a significant jump in annuity premium income stream by 180 percent to N3.10 billion.
This coupled with a N14.83 billion in premium income from its Life segment which constitutes about 58 percent of total premium income saw gross income pick up 37 percent to N23.38 billion in Q2 2019.
Net underwriting profit also trended northwards by 38 percent to N22.06 billion on positive effect from growth in net premium income despite income from fees and commission slid marginally to N1.45 billion from N1.53 billion in the previous period.
Meanwhile, AIICO’s underwriting loss position worsened by 742 percent to a loss of N4.9 billion in Q2 2019 from a loss N593 million in Q2 2018. This is no thanks to the company’s surge by 64 percent in total underwriting expenses to N27.05 billion against N16.53 billion.
A look into company’s cash flow statement revealed that as part of its investment activities during the period, AIICO increased exposure on in the Nigeria bond market by 68 percent after investing N35.32 billion. Also exposure in treasure bill increased 19 percent from to N3.77 billion against N3.17 billion in 2018.
Meanwhile, year-on-year AIICO recorded an increase by 23 percent in its total assets. Assets grew to N135.5 billion in Q2 2019 against N109.9 billion in the previous corresponding period. In the same vein, total liability grew however at a faster pace by 25 percent to N118.07 billion from N94.71 billion.
David Ibidapo
