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Business News of Monday, 16 November 2020

Source: Punch

Our Q3 premium rose to N47.2bn – AIICO

AIICO Insurance Plc has said its gross written premium rose by 27 per cent year-on-year from N37bn in the third quarter of 2019 to N47.2bn in Q3 2020.

The firm disclosed this in a statement entitled ‘AIICO Insurance announces third quarter 2020 results’ on Friday.

It said its profit before tax reduced by seven per cent year-on-year, from N5.0bn in Q3 2019 to N4.7bn in Q3 2020.

Profit after tax increased 17 per cent year-on-year to N5.2bn for the interim period ended September 30, 2020 from N4.5bn in the corresponding period in 2019.

Total assets increased by 55 per cent year-to-date to N245.8bn from N159.5bn in December 2019, driven by an increase in financial assets, including cash and cash equivalents.

Financial assets increased because of the decline in investment yields and judicious investment of funds received for policies sold.

The firm said its total liabilities increased 63 per cent to N212.6bn from N130.6bn in December 2019, driven mainly by increases in insurance contract liabilities (from the decline in yields and reserving for new businesses) and fixed income liabilities (third-party funds under management) in its asset management business.

Total equity grew by 15 per cent year-to-date to N33.2bn from N28.9bn in December 2019.

The Managing Director and Chief Executive Officer, Babatunde Fajemirokun, said, “Global and local macroeconomic headwinds continue to test the resilience of our business, and operating models as well as our business continuity plans and the strength of our relationships with our customers and partners.”

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