AIICO Insurance Plc is expecting to achieve a pre-tax profit of N17.6 billion, which is a 46% increase from the N12 billion recorded in the 2023 financial year. This forecast follows a strong first half of 2024, where the company reported a pre-tax profit of N14.4 billion, a significant 98% increase from the N7.3 billion profit in H1 2023. During this period, AIICO also spent N42.5 billion on claims and other insurance service expenses.
In its earnings projection, AIICO anticipates a gross written premium of N141 billion, a 29% growth from the previous year, and a 27% increase in insurance revenue to N90.8 billion. The company also expects an insurance service gain of N3.45 billion, a notable improvement from the loss recorded in 2023.
AIICO paid out N68.3 billion in claims in 2023, with a majority of the payments made in the second half of the year. In the first half of 2024, the company saw a 70% growth in claims payment and is projected to pay up to N100 billion in claims for the year. AIICO aims to generate a net cash flow inflow of N23 billion from operating activities, primarily driven by premiums received.
The company is forecasting a 39% growth in net income for the 2024 financial year, with a projected net income of N16.7 billion. This positive performance indicates that AIICO may increase its dividend payout from the 5 kobo per share paid in 2023. AIICO Insurance continues to demonstrate strong financial performance and is poised for its best earning year yet.
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