There are plans at AIICO Insurance Plc to increase the portion of profits allocated to dividend payouts, as stated by Mr Babatunde Fajemirokun, the Managing Director/Chief Executive Officer, during the company’s 54th annual general meeting in Lagos.
Assuring shareholders of higher value and improved returns on investments in the coming years, Fajemirokun mentioned that both the board and management are contemplating dedicating a larger share of future profits to dividend payments.
On the other hand, Mr Kundan Sainani, the Chairman of AIICO, highlighted the significant growth the company experienced in 2023 due to the meticulous implementation of its business strategy. This growth led to a gross written premium of N110.1bn in the review year, up from N88.3bn in 2022.
The transition from IFRS 4 to IFRS 17 standard contributed to this success, resulting in the recognition of insurance revenue increasing from about N54.8bn in 2022 to N72.6bn. This shift demonstrates the company’s commitment to financial transparency and sound practices.
Sainani acknowledged the challenging socio-economic environment marked by factors like increased monetary policy rates, inflation, fuel subsidy removal, forex scarcity, and other obstacles that led to domestic price hikes. Despite these challenges, AIICO had a strong performance in 2023, with profits growing by 132.6% to N12bn from N5.2bn in 2022.
Looking ahead, Sainani affirmed AIICO’s resilience and adaptability in the face of economic dynamics, emphasizing the company’s readiness to offer favorable terms to customers and strategically invest in ventures with lucrative returns.
During the AGM, some shareholders praised the company’s management for fortifying its fundamentals and expanding its asset base. Dr. Alex Adio commended AIICO for its consistent dividend payments and urged the board to consider increasing the dividend payout next year.
Another shareholder, Dr. Anthony Omojola, lauded the company’s share buy-back initiative, anticipating that it would boost earnings per share and elevate the share price.
Established in 1963, AIICO Insurance offers life & general insurance, health insurance, and investment management services.