Olalandu said that the N60.7 billion represented 21.3 per cent growth, when compared to the 2019 financial year figure of N50.1 billion.
He attributed the growth to continuous investment in the agency’s force, increased focus on partnerships and better relationship with corporates.
The spokesman said that the firm recorded an underwriting loss of N36.3 billion in 2020 compared to N7.7 billion in 2019.
He hinged the loss on two main factors — reserving requirements for new policies underwritten in the life business in 2020 and changes in actuarial reserves in the life business for policies written in 2020 and prior years.
“There were significant movements in investment yields which affected the value of liabilities and assets in our life business.
“On the short and long ends of the yield curve, yields declined by about 7.7 per cent and 5.5 per cent respectively in 2020.
” The effects of these changes are reflected in the change in life and annuity funds, as well as fair value gains or losses on the income statement.
” In addition, changing client preferences mean that there has been a change in our retail product mix.
“Some of these products require higher reserving requirements which results in an increase in our liabilities, thereby reducing reported underwriting profits, ” he said.
According to him, the underwriting performance in the general business also declined due to increased claims in fire because of the civil unrest across the country and special oil lines.
Olalandu said that the investment income of the insurer grew by 13.1 percent year-on- year to N11.7 billion in 2020 financial year from N10.4 billion in 2019 financial year from increased assets under management.
He said profit before tax from continuing operations declined by 22.6 per cent year-on-year to N4.6 billion in 2020 financial year from N6.0 billion in 2019 financial year.
According to him, the drop was due to the lower-than-expected profits in the company’s Life business as a result of higher-than-expected reserving requirements/low yields.
“However, our General Insurance and Wealth Management businesses increased their contribution to profits,” he said.
Olalandu said that the profit after tax from continuing operations declined by 12.9 per cent year-on-year to N5.0 billion in 2020 from N5.7 billion in 2019 financial year.
He said profit for the year declined by 11.1 per cent year-on-year to N5.2 billion in 2020 financial year from N 5.9 billion in 2019 financial year.
The spokesman said the company’s total asset increased by 52.4 per cent to N 243.1 billion in 2020 financial year from N159.5 billion in 2019 financial year.
According to him, AIICO’s total liability also grew by 59.6 per cent to N 208.4 billion in 2020 financial year from N130.6 billion in 2019 financial year.
He said the firm’s total equity increased by 19.9 per cent to N34.7 billion in 2020 financial year from N28.9 billion in 2019 financial year.
The company’s Managing Director, Babatunde Fajemirokun, was quoted as saying that the pandemic caused a questionable global marketplace and led to a global economic upheaval.
Fajemirokun explained that the Nigerian economy slipped into its second recession in five years, with the business environment further impacted by incidents of civil unrest.
“Despite these unprecedented macroeconomic disruptions, AIICO grew its total assets by 52.5 per cent in the year under review.
“We delivered sound results having taken decisive early actions to protect our workforce, improve our financial strength, streamline operations and reinforce our distribution strategy.
“Over the past five years, we invested substantially in human capital and technology to significantly elevate our customer experience.
“This resulted in our gross written premiums growing 23.6 per cent year-on-year despite restrictions caused by the pandemic, ” he said.
According to the managing director, the company’s financial position remains strong, inspiring confidence in its ability to assume the risks its customers wish to transfer.
Fajemirokun said the insurer’s investors showed their commitment, as its rights issue announced in September 2020 was oversubscribed by about 26 per cent.
He noted that the capital was deployed judiciously, generating risk-adjusted returns for its shareholders and ensuring that it continues to keep its promises.