AIICO to grow market premium

The Managing Director/Chief Executive Officer, AIICO Insurance Plc, Edwin Igbiti, has disclosed that plans are underway to grow market premium by maintaining close relationship with brokers and agents.

Speaking with journalists at a pre-yearly general meeting in Lagos, Igbiti said the firm will continue to engage with its partners to ensure that it found mutually beneficial ways to work with them.

According to him, “We will focus on improving efficiency across it businesses while embedding a culture of rigorous performance management across the organisation.”

He said: “We will continue to invest in our people to increase our human capital, adding we believe that a motivated workforce will represent the company better to our clients.

“Despite the present economic conditions, we have never been more optimistic about the future of this company. We know exactly who we are and where we want to be.”

Speaking further, Igbiti disclosed that underwriting profit increased by 326 per cent from a loss of N5.5 billion to a profit of N12.45 billion across the group, driven by slight underwriting improvements in the non-life business release of the reserves in the life business.

He however said the firm’s gross premium written declined by 18 per cent from N32.9 billion in 2015 to N27.1 billion in 2016, because of its strategic decision to reduce premiums written in long term business due to higher market risks.

He noted that due to the reduction in annuity reserves, which recorded a decrease in unearned premiums, AIICO recorded a gross premium income of N30 billion in 2016, compared with N10.4 billion reported in 2015; indicating 188 per cent increase.

Meanwhile, the actual investment income rose to N7.2 billion in 2016, representing 27 per cent increase compared with N5.7 billion achieved in the previous year.

Similarly, the Executive Director, AIICO, Babatunde Fajemirokun, who is responsible for the firm’s operations, said the firm is eyeing a gross premium income of N30 to N32 billion from 2017 underwriting business.

Igbiti also noted that the company’s asset management capabilities continue to be a key strength, following its outstanding performance in investment income due to high yield.

He said the firm’s total assets came down by N2.6 billion to N77.5 billion from N80.1 billion achieved in 2015, which he said was due mainly to the reduction in the value of financial income assets and the one-time expenses which decreased cash holdings and financial assets.