July 26 (Lagos) - Shares of
AIICO Insurance Plc rose by 10% today after a strong second quarter performance.
The most impressive metric from the result is the sharp rise in Net Assets to N 13 billion which is very close to the new NAICOM requirement of N 15 billion to operate as a Tier 1 Company (effective Jan 1 2019).
Gross Premium income rose to N 8.81 billion in Q2 2018 up from N 6.97 billion in Q2 2017.
Net Premium income rose to N 7.3 billion in Q2 2018 from N 5.73 billion in Q2 2017, this is a big positive from
AIICO in this quarter.
Net Claims expenses tose to N 5.8 billion in Q2 2018 from N 5.4 billion in Q2 2017.
Underwriting loss decreased to N 180 million in Q2 2018 from N 497 million in Q2 2017.
On the negative side, Operating expenses rose to N 1.13 billion in Q2 2018 from N 884 million in Q2 2017.
Profit before tax rose to N 1.04 billion in Q2 2018 from N 466 million in Q2 2017.
Profit after tax rose to N 943 million in Q2 2018 from N 441 million in Q2 2017.
Totoal comprehensive income rose to N 584 million in Q2 2018 from loss of N 70 million in Q2 2017.
For the first 6 months of 2018, total comprehensive income rose to N 1.74 billion compared with N 394 million in the same period of last year.
For 2017,
AIICO paid dividend of 5 Kobo per unit to its shareholders and they will be expecting a higher payout for current year after this result.
AIICO group is 55 years old in Nigeria and consists of
AIICO Insurance Plc,
AIICO Capital Ltd,
AIICO Multishield HMO and
AIICO Pension Managers.
In our opinion, the shares can rise higher based on these results and seek to challenge the 52 week high of 88 Kobo per unit set earlier this year.