From Edet Udoh, Lagos
AIICO Insurance Plc has declared a six kobo dividend per ordinary share of 50 kobo each, amounting to N415. 8 million to its shareholders, representing 20 per cent increase over what was declared last year.
This was contained in the financial statement presented by the Chairman of the Board of Directors of the company, Bukola Oluwadiya, to its shareholders and members of the Board of Directors at its 49th Annual General Meeting (AGM) in Lagos.
He told shareholders at the AGM that for the financial year ended December 31, 2018, the board was “recommending for approval at this Annual General Meeting the payment of a total of N415,812,268.80 representing six kobo per ordinary share of fifty kobo each. This dividend will be payable net of withholding tax following your approval at this Annual General Meeting.”
He said in order to deliver superior returns to the company’s shareholders, the board has decided to move to a progressive dividend policy.
Mr. Oluwadiya said going forward, the company plan is to maintain or grow the ordinary dividend per share over time depending on business performance, growth prospects and regulatory solvency requirements.
The Chairman who described 2018 as “another better year for our company” said the company’s meticulous execution of its transformation plans yielded expected result with year on year improvement in its performance.
During the period under review, Mr. Oluwadiya said the company’s Gross Premium grew by 17.4% to N37.7 billion from N32.1 billion reported in 2017.
He said the growth was predominately driven by both the company’s life and non-life businesses.
He said the company’s deliberate approach to risk selection; superior technical underwriting capabilities and reinsurance arrangements led to over 180 per cent improvement in its underwriting profits from negative N4 billion in 2017 to over N3.2 billion in 2018.
The profit before tax, he said, stood at N3.4 billion, representing a 15 per cent growth over N3 billion recorded in the same period of 2017.
During the period under review, according to him, the company’s Net Asset Value (NAV) increased by 39.4 per cent from N10.9 billion in 2017 to N15.2 billion, which he said was driven by profit for 2018.
He said the company has continued to strengthen its insurance businesses through investment in actuarial capabilities by employing a Chief Actuary in the team which he said has significantly added value to the company’s business strategy and execution.