) repored first quarter results for 2019 that blew away investor expectations. Gross Premium income rose 44% to N 12.39 billion in Q1 2019 from N 8.56 billion in Q1 of 2018.
Net Claim expenses rose by 14% to N 6.42 billion in Q1 2019.
Profit before tax rose 19.5% to N 1.16 billion in the quarter from N 970 million in same period of last year.
Total comprehensive profit rose by 40% to N 1.38 billion in the first quarter from N 980 million in same period of last year.
Most impressive was the 9.2% increse in Net Assets to N 15.85 billion in the firist quarter. This is after almost 50% increase in Net Assets reported in full year 2018 results.
AIICO is clearly coasting ahead in the Insurance sector and delivering on its leadership position which has been slipping for the past few years. The Company recently put in place a new CEO and Chairman, both of them are young and dynamic leaders who have risen from within the Organization.
The stock of
AIICO currently trades at 75 Kobo per unit and this sharply below its book value. The Nigerian stock market continues to punish investors in the Insurance sector.
There is also a possibility of a private placement into this Company, approval for which has already been received from shareholders. It should be noted that IFC, the investment arm of World Bank is already an investor in AIICO.
The AGM is slated in May and that is when the 6 Kobo dividend will be approved by shareholders. The dividend was raised by 20% for 2018 but investors were hoping for a higher dividend from the EPS of 44 Kobo that the Company reported in 2018.
It is possible that Company is going hard to regain its market share and that is why they did not pay a higher dividend but shareholders will be expecting a big improvement next year based on these results.