Gross premium earned advanced by 37.13% YoY to NGN35.56bn (vs. NGN25.93bn in Q3:2018), driven by the extensive distribution network of the firm. The firm’s life insurance segment was the most significant contributor to premium growth; the business segment was the fastest growing during the period (43.18% YoY) and accounted for 73.32% of total gross premium income. Premium income from the non-life and health businesses also rose by 23.66% and 8.98% respectively. While the growth rate of the nonlife business was higher than its 3 year average growth rate (21.07%), the faster growth recorded in the life business dwarfed the contribution of the nonlife business to topline during the period. Hence, the contribution of the non-life business came in at 25.36%, lower than its 5-year average contribution of 30.58%. The low contribution of the business segment reinforces the need for the firm to strengthen the weak capital base of its nonlife business (with a solvency margin of NGN6.34bn) to improve the performance of the business segment. We expect 11.50% YoY rise in total premium earned by 2019FY, given its stance as one of the dominant life insurers in the industry and its large agent force (over 4,000 retail outlets) and its well-diversified product designs. Kindly find attached the full report.
Earnings Update- AIICO: 9M 2019.
Gross premium earned advanced by 37.13% YoY to NGN35.56bn (vs. NGN25.93bn in Q3:2018), driven by the extensive distribution network of the firm. The firm’s life insurance segment was the most significant contributor to premium growth; the business segment was the fastest growing during the period (43.18% YoY) and accounted for 73.32% of total gross premium income. Premium income from the non-life and health businesses also rose by 23.66% and 8.98% respectively. While the growth rate of the nonlife business was higher than its 3 year average growth rate (21.07%), the faster growth recorded in the life business dwarfed the contribution of the nonlife business to topline during the period. Hence, the contribution of the non-life business came in at 25.36%, lower than its 5-year average contribution of 30.58%. The low contribution of the business segment reinforces the need for the firm to strengthen the weak capital base of its nonlife business (with a solvency margin of NGN6.34bn) to improve the performance of the business segment. We expect 11.50% YoY rise in total premium earned by 2019FY, given its stance as one of the dominant life insurers in the industry and its large agent force (over 4,000 retail outlets) and its well-diversified product designs. Kindly find attached the full report.