AIICO INSURANCE PLC PROJECTS HIGHER DIVIDENDS FOR SHAREHOLDERS

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Olori Uwem

Member
Mar 18, 2024
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AIICO INSURANCE PLC PROJECTS HIGHER DIVIDENDS FOR SHAREHOLDERS

1. Dividend Strategy Update:
- Commitment to Dividends: AIICO Insurance Plc is considering increasing the portion of its profits allocated to dividend payments.
- Statement: This was announced by Mr. Babatunde Fajemirokun, the Managing Director/CEO, during the company’s 54th Annual General Meeting (AGM) held in Lagos.

2. Financial Performance Highlights:
- Gross Written Premium: Increased to ₦110.1 billion in 2023 from ₦88.3 billion in 2022.
- Insurance Revenue: Transition from IFRS 4 to IFRS 17 led to a rise in insurance revenue to ₦72.6 billion from ₦54.8 billion in 2022.
- Profit Increase: Profits surged by 132.6% to ₦12 billion in 2023, up from ₦5.2 billion in 2022.

3. Operational Context:
- Economic Challenges: AIICO navigated significant socio-economic issues, including higher monetary policy rates, inflation, fuel subsidy removal, and forex scarcity.

4. Future Outlook:
- Resilience and Adaptability: AIICO plans to continue offering favorable terms to customers and strategically invest in profitable opportunities.

5. Shareholder Feedback:
- Dr. Alex Adio: Praised the company’s consistent dividend payments and suggested an increase in dividends for the following year.
- Dr. Anthony Omojola: Commended the share buy-back scheme, noting its potential to enhance earnings per share and boost the share price.

6. Company Background:
- Founded: 1963.
- Services: Provides life & general insurance, health insurance, and investment management.