AIICO Company with rich experience since 1963 that was incorporated, registered and licensed in Nigeria as American Life Insurance Company Limited – as a wholly owned subsidiary of ALICO/AIG – in 1970 – to offer Life and insurance services. According to the record the Company was renamed American International Insurance Company Limited (“AIICO”) upon the acquisition of a 60% stake by the Federal Government of Nigeria, and later listed on the Nigerian Stock Exchange in 1990, after which both shareholders – the Federal Government of Nigeria and AIG divested.
The AIICO Insurance Company in its operational statement for earnings forecast for the third quarter ending 30 September 2021 sent to Nigerian Exchange (NGX) which was endorsed by Babatunde Fajemirokun (MD) Dated June 10 2021 saying our business is cyclical by nature, in which profits do not accrue evenly over the months but rather accrues more in the second half than the first half.
Hence, the forecast for second half is better than the first half forecast, he added.
VMT: all value figures use in this report are in N’000.00
Gross Written Premium 53,823,905
Unexpired Risk Premium (4,626,349)
Gross Premium Income 49,197,555
Reinsurance costs (6,058,376)
Net Premium Income 43,139,179
Commission received 1,350,426
Total Insurance Income 44,489,605
Net Claims incurred 29,903,445
Underwriting expense (Commission and maintenance) 6,003,418
Change in Life Fund 9,386,080
Total Underwriting costs 45,292,943
Underwriting profit (803,337)
Investment Income 9,594,466
Profit from Deposit Administration 85,606
Other income 654,744
Total Operating Income 9,531,479
Profit Before Tax 3,118,657
Profit After Tax 3,052,234
Also, the AIICO’s cashflow forecast for the third quarter ending 30 September 2021 showed as follow:
Net cash flows from operating activities 2,703,790
Net cash flows from investing activities (40,643)
Net cash flows from financing activities
– Net increase in cash and cash equivalents 2,663,147 Cash and cash equivalents – Opening 9,279,577
Cash and cash equivalents – Closing 11,942,724
- Gross Written Premium projected for the third quarter of 2021 is N53.82 billion representing 75% of 2021 full year budget.
- The Non-Life business represents 28% of the stated GWP while the Ordinary Life, Group Life and Annuity businesses represent 60%, 10% and 2% respectively.
- Investment income will be driven largely by our bond investments and our investment in other short-term financial assets.
- The following non cash transactions were included in the Statement of Profit or Loss and Other comprehensive income:
– Depreciation of Non-current asset in line with the Group’s policy
– Amortization of intangible assets
– Net fair value gain/loss on financial assets.
- Reinsurance expenses is projected at an average of 9% of the projected Gross Written Premium.