@ NNs,
"Aiico Insurance grows Q3 profit after tax by 63%
Wednesday, 24 February 2010 01:09 Modestus Anaesoronye
?Records N7.7bn premium
Things are looking up for underwriting giant, Aiico Insurance plc, going by its third quarter 2009 result submitted to the Nigerian Stock Exchange and shareholders over the weekend. The company posted a premium income of N7.72 billion at the end of third quarter 2009, a 39.52 percent growth from N5.53 billion recorded in the same period in 2008.
Its investment and other income appreciated, despite the challenges in investment market in the year under review stood at N1.16 billion, falling less by 9.52 percent.
The company, which is likely to pay out good returns to shareholder at the end of the year, recorded a profit before tax of N1.44 billion as against N88.46 million the previous year, indicating a 62.98 percent increase. Profit after tax stood at N1.30 billion, a growth of 62.98 percent from N796.1 million the previous year. The company?s management is optimistic that the bottom line at the end of 2009 shall attain the one and half billion marks. Analyst, who commented on the result, noted that the healthy premium income growth has translated to superior margins in profitability, giving rise to a better future by year end.
Certainly, for the insurance sector in Nigeria the best was yet to come, going by the various reforms in the sector between 2003 and the present, which has positioned insurance companies more efficiently and operating on sound economic principles.
The company is keen on taking advantage of the significant opportunities presented by the expanding oil and gas sector, and already there were indications that sector leaders are setting the pace and increasing their market share. AIICO Insurance is one company that has remained focused and ready to assume a vintage position in the market, and the positive trend of its shares in the stock markets after the lull suggests that investors are taking notice. As an analyst notes, ?The release of its third quarter 2009 results with an almost 63 percent increase in its profit after tax has made Aiico Insurance shares one of the most valuable and sought-after in the insurance sector on the floors of the stock exchange.?
Throughout last week, Aiico Insurance made high gains and was the sector leader before closing at N1.12, the analyst further observed.
Analysts also attribute Aiico?s leadership to its dominance of the insurance sector, particularly in life insurance services where it is number one, and the general insurance business where it is equally a dominant player. Indices suggest that the company?s consistent performances are due to the fact that its market-based valuation compares favourably with its peers, as well as the perception as a good insurance stock among brokers.
Its innovativeness as well as its re-designation as a financial services company, aims at customising and implementing suite of applications that will address its core functional areas, life and general insurance, as well as financial services, investment and customer relationship management."
Samstone4
Alakoso....AIICO, IGI ...where are my dividends?
