Apr 28 (Lagos) - AIICO
Insurance Plc reported first quarter results that exceeded expectations as Profit after tax rose by 119% to N 937 million for the first three months of 2016.
Gross Premium written rose 3% to N 8.2 billion during the first quarter. AIICO
paid claims of 2.4 billion in the three month period.
Total comprehensive loss for the period was N 630 million mainly as a result of an item of other comprehensive loss of N 1.5 billion.
At the end of the first quarter AIICO
had cash and cash equivalents of N 12.99 billion as compared to N 8.45 billion at the end of financial year 2015.
Shareholders funds declined to N 8.9 billion at the end of the first quarter from N 9.3 billion at the end of Dec 31 2015.
Net Premium income rose to N 4.21 billion at the end of March 31 2016 from N 3.5 billion for the same period of last year.
Net Underwriting income rose to N 4.7 billion at the end of Q1 2016 from N 3.9 billion from the same period of last year.
Underwriting profit rose to N 1.3 billion in the first quarter of 2016 from N 453 million for the same period of 2015. Investment income rose to N 1.4 billion during the quarter from 1 billion for last year same quarter.
Earnings per share rose to 13 kobo per share for the first quarter up from 6 kobo for the same period of last year.
Shares of AIICO
trade at 76 kobo per unit at the Nigerian Stock Exchange in Lagos. These are some of the most undervalued stocks at the exchange in the Insurance basket. The market keeps on punishing the stock in spite of the Company dominating the Insurance sector with its Claims settlements numbers.
Even the Corporate arm of the World Bank, the International Finance Corporation (IFC) has invested in AIICO
so we can expect a higher dividend for 2016 than the 5 Kobo dividend Company is paying for 2015 to its shareholders.
This Company pays more in Claims than some Companies write as Premiums for the whole year. Sadly the stock market does not take that into consideration.
reporting for easykobo.com on Thursday, April 28 2016 from Lagos, Nigeria
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