AIICO Looks Forward to N1.13bn Profit Next Three Months
AIICO Plc is looking at declaring N1.13 billion as profit in the first quarter of 2022, according to the Insurance company latest regulatory filing. To achieve the profit level, the company sets its gross written premium expectation for the first quarter at N24.99 billion.
However, unexpired risk premium outflow is expected at N5.564 billion, thus reducing the Insurer gross premium income expectation to N19.40 billion.
Out of the sum, the company plans to meet its reinsurance costs of N2.574 billion, leaving AIICO with a net premium income of N16.856 billion.
In the period, the insurer is expecting to receive a commission of about N611 million from its investments, which push the expected net insurance income to N17.466 billion.
It is also expecting to make significant payments for claims, total underwriting costs would take away as much as N17 billion in the first three months in 2022.
The components of the Insurer total underwriting costs include net claims incurred, underwriting expenses which normally includes commission and maintenance expenses as well as costs associated with a change in life fund.
In the first three months in 2022, AIICO is expecting to see an underwriting profit of a little less than N460 million, the regulatory filing with Nigerian Exchange shows.
However, the management expects to boost the company’s projected bottom line with investment income and other income line items worth N3.215 billion.
It also expects more than N32 million income from its deposit administration. In the period, AIICO sees an estimated total operating income above N3.7 billion, while total overhead is estimated at N2.531 billion.
Profit after tax is expected to settle at N1.13 billion following a N42.386 billion tax provision against its pretax profit estimate of N1.175 billion, the company said in a statement signed by Managing Director Babatunde Fajemirokun and Chief Financial Officer Oladeji Oluwatola.
Based on the projection, the company hinted that the Non-Life business represents 30% of the stated gross written premium while the ordinary Life, Group Life and Annuity businesses represent 43%, 9% and 2% respectively.
It said investment income will be driven largely by bonds and investment in other short term financial assets. Reinsurance expense is projected at an average of 10% of the projected Gross Written Premium, AIICO clarifies. #AIICO Looks Forward to N1.13bn Profit Next Three Months
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