AIICO Insurance Grows Underwriting Profit By 326%
By Ebere Nwoji
AIICO Insurance Plc, said it grew its underwriting profit for the year ended December 31st,2016 by 326 percent.
Its Gross Premiums for the period however witnessed slide from N32.9 billion in 2015 to N27.1billion in 2016 down by N5.8billion (or 17.8per cent).
Announcing this to shareholders at the 2016 annual general meeting of the company held in Lagos recently, AIICO Insurance Managing Director, Edwin Igbiti, explained that the reduction in the company’s gross premium during the period was due to its strategic decision to reduce premiums written in the long-term business (retirement product) as a result of higher market risks.
Igbiti said AIICO’s underwriting profit for the period, increased from a loss ratio of N5.5billion to a profit of N12.45billion across the group driven by slight underwriting improvements in the non-life business and release of the reserves in the life business.
He added: “Our decision to diversify the long-term business to include protection and endowment products – this increased by N3.4 billion (36%) in 2016.
“Economic conditions that affected business in 2016 key accounts in the corporate business segment were not renewed.
We recorded Gross Premium Income of N30 billion in 2016 up N19.6 billion (or 188%) from N10.4 billion in 2015.”
He said this was as a result of the reduction in the company’s annuity reserves, which is recorded as a decrease in unearned premiums in its income statement and a release to profits.
Furthermore, he said: “Actual investment income increased by 27 percent in 2016 to N7.2 billion from N5.7 billion. Our asset management capabilities continue to be a key strength for the company as we recorded a significant increase in investment income due to high yield.”
According to him, book value of equity/shareholders’ funds as at December 31, 2016 was N8.3billion, down by N1billion (or 11%).
He attributed this to the reduction in the value of assets as interest rates increased.
Igbiti said the company also incurred some one-time expenses during the year (such as bank duty taxes) totaling almost N2 billion, adding that the cumulative effect of the reduction in asset values is found in other comprehensive income as a loss in available-for-sale assets and is reflected in a reduction in shareholder’s equity.
Furthermore, he explained that total assets of the company as at December 31,2016 stood at N77.5 billion down by N2.6 billion from N80.1 billion, explaining that this was due mainly to the reduction in the value of financial assets and the one-time expenses which decreased cash holdings and financial assets of the company.
He told shareholders at the meeting that the company is poised to remain committed to its clients spread across the country, even as he said that the company’s plan is to grow the insurance market premium by maintaining its close relationship with insurance brokers and its agency network.
Adeshina Appointed into Board of Premium Pension Ltd
Premium Pension Limited, a Pension Fund Administrator (PFA), has announced the appointment of Mr. ‘Bade Adeshina into its Board of Directors.
A statement by the company’s Head, Corporate Communications, Mr. Paddy Ezeala, said that Adeshina’s appointment was ratified during the firm’s recently held annual general meeting (AGM).
Adeshina, who is currently Managing Director, Goldfield Group, is expected to bring his wealth of experience from working in the private and public sectors to bear on his new appointment.
He holds B.Sc. and M.Sc. degrees in Finance from University of Lagos and obtained a diploma in Information Science/Systems from University of Ibadan.
He is an Honorary Member of the Chartered Institute of Bankers of Nigeria, a Fellow of Certified Pension Institute of Nigeria, and Association of Investment Advisers & Portfolio Managers, member of the Institute of Directors and Chartered Institute of Stockbrokers.
Adeshina started his career as a Graduate Assistant/Senior Information Officer with the University of Lagos from where he moved to the banking sector.
He has over 30 years’ experience in Financial Management services in both commercial and investment banks amongst which are Afribank Nigeria Plc (formerly Mainstreet Bank and now part of Skye Bank Group), Afribank International Bank Limited (Merchant Bankers) and Access Bank Plc.
From Access Bank, he resigned his appointment as General Manager to join CDL Asset Management Limited as the pioneer Managing Director/CEO. He was Special Adviser (Ministry of Economic Planning, Budget & Development) to the Executive Governor of State of Osun.
The 58-year old Osun State-born technocrat has attended several local and international training programmes during the course of his career at renowned business schools including the prestigious Harvard Business School.
He is currently on the Board of Apricot Investments Limited as well as being the Chairman, Board of Directors, Crownhead Capital Limited and Aremott Banwill & Co. Limited, a reputable insurance brokerage firm of over thirty years operation.
Because of his wealth of experience and proven record of performance, Adeshina is acknowledged as a professional with the Midas touch.
Before his resignation from CDL Asset in 2013, he ensured that he the firm better than he met it. Hear him: “As the Managing Director of CDL Asset, I provided overall direction, leadership and guidance, which positioned the company at the forefront in the industry.”
Also, under his watch, Goldfield Group, which comprises organisations offering financial and management consulting to high net worth individuals; corporate and project finance advisory services, securities brokerage and real estate investment/management as well as pension funds management, has become the toast of clients from diverse sectors.