AIICO projects higher dividends for shareholders

AIICO Insurance Plc is considering committing a higher portion of its profits to the dividend payout.

According to a statement from the firm on Monday, this was disclosed by the Managing Director/Chief Executive Officer, Mr Babatunde Fajemirokun, at the firm’s 54th annual general meeting held in Lagos.

Fajemirokun assured the shareholders of high value and better returns on investment in the years ahead.

“Fajemirokun said both the board and management were considering devoting a bigger chunk of future profits to dividend payments,” the firm stated.

Meanwhile, the Chairman of AIICO, Mr Kundan Sainani, said 2023 produced significant gains for the company as a consequence of the meticulous execution of its business strategy, resulting in a gross written premium of N110.1bn during the review year as against N88.3bn in 2022.

The result, according to him, was achieved as the company transitioned from using IFRS 4 to IFRS 17 standard, which resulted in the recognition of insurance revenue of about N72.6bn from N54.8bn in 2022, demonstrating the company’s commitment to transparency and robust financial practices.

Sainani noted that those results were achieved amid serious socio-economic challenges typified by increases in monetary policy rate, inflation, removal of fuel subsidy, forex scarcity, and other headwinds, which contributed to the rise of domestic prices.

“Despite this unsettling landscape, 2023 was another strong year for AIICO, with the firm generating impressive record revenue and substantial growth. Our profits for the period increased by 132.6 per cent to N12bn from N5.2bn in 2022, reflecting strong underlying performance across our businesses”, he remarked.

Referencing the dynamics in the economy and projecting into the future, Sainani declared that AIICO remained resilient and adaptable, ready to provide more favourable terms to its valued customers and strategically invest in opportunities that yield advantageous returns.

Some shareholders at the AGM commended the board and management of AIICO for strengthening the company’s fundamentals and growing its asset base.

A shareholder, Dr Alex Adio, commended the company for consistent dividend payments and urged the board to increase the dividend payout next year.

Another shareholder, Dr Anthony Omojola, praised the company for its share buy-back scheme, noting that it would enhance earnings per share and increase share price.

AIICO Insurance, founded in 1963, provides life & general insurance, health insurance, and investment management services.