AIICO projects 46% profit growth in 2024 as it pays out N42.5 billion claims in six months
AIICO Insurance Plc is forecasting a pre-tax profit of N17.6 billion, representing a 46% increase from the N12 billion pre-tax profit posted in the 2023 financial year.
The group’s forecast comes off an impressive 2024 first half, posting a pre-tax profit of N14.4 billion, marking a 98% year-on-year increase from the N7.3 billion pre-tax profit posted in H1 2023. In the first half of 2024, the company also spent N42.5 billion on the payment of claims and other insurance service expenses.
In its earnings forecast, the company projected a gross written premium of N141 billion, marking a 29% growth from the N109.4 billion recorded in FY 2023. The company is also projecting a 27% growth in its insurance revenue to N90.8 billion from N71.6 billion recorded in 2023.
AIICO forecasts an insurance service gain of N3.45 billion, significantly improving from the N1.62 billion loss recorded in 2023. Also, the company’s revenue from its General Business during the half-year was about N24.3 billion, while it posted an insurance revenue of N23.9 billion from its Life Business. However, the gain posted on the Life Business was about N2.3 billion, while the General Business posted an N871 million loss during the period.
The company is projecting a 39% growth in net income for the 2024 financial year, with a forecasted net income of N16.7 billion, in contrast with the N12 billion recorded in FY 2023.
For the 2023 financial year, AIICO Insurance paid a dividend of 5 kobo per share, representing a dividend payout ratio of 15.2%. With net income projected to increase, it is projected that the company will pay an increased dividend.
The group is on course for its best earning year in history.
Paid out N68.3 billion claims in 2023
In 2023, AIICO Insurance was very high up on the list of claims payments in Nigeria as it paid out claims totalling about N68.3 billion during the year. About 63% of these claims were paid in the second half of the year.
With the company already posting a 70% year-on-year growth in claims payment in the first half of 2024, it is projected that the company may pay out up to N100 billion in claims in 2024. AIICO is projecting a net cash flow inflow of N23 billion from its operating activities with the bulk expected to come from premiums received.
Between 2019 and 2023, AIICO Insurance paid out about N236 billion in claims and other expenses, the highest spend on claims by an insurance company listed on the NGX within that period.
