May 8 (Lagos) -
AIICO Insurance Plc reported 2019 results that blew away analyst expectations with Premium income of N 50 billion up from N 37 billion in 2018.
Claims expenses rose slightly to N 25 billion in 2019 from N 23 billion in 2018.
Profit before tax rose by 78% to N 6.23 billion in 2019 from N 3.49 billion in 2018.
Shareholders funds of
AIICO group rose to N 27.41 billion in 2019 from N 14.52 billion in 2018. Out of the increase N 5.28 billion is for new shares which will be issued for their investment in the Company's life Insurance development.
The Nigerian stock market has long punished the shareholders of this Company along with most of the sector. The reason for that is the lack of corporate accountability that existed or still exists in some companies in the sector. However this result shows why
AIICO is an undervalued gem in the basket of Insurance stocks that are listed on the exchange.
This year has seen accumulation in the stock and a slow increase in stock price but this could really open the floodgates to investors who would want a piece of the stock before the rights issue or bonus.
Shareholders will also be thinking about the dividend because this is a dividend stock as well and with eps of 83 kobo for the group, memories of the pre-2008 market crash would come rushing back. If you told people 12 years back that this stock will sell for 89 kobo 12 years after - they would have taken you for a joke.
reporting for easykobo.com on Thursday, May 8 2020 from Lagos, Nigeria