NSE admits 4.36bn Ordinary Shares of AIICO Insurance
About 4.36 billion ordinary shares of AIICO Insurance Plc were listed on the daily official list of the Nigerian Stock Exchange, according a report obtained from the NSE at the weekend.
The additional shares listed arose from the company’s Rights Issue of 4.36 billion ordinary shares of 50 kobo each at 80 Kobo per share on the basis of five new ordinary shares for every 13 ordinary shares held as at Monday, June 15, 2020.
The Rights Issue was 100 per cent subscribed. With this listing of the additional 4,36 billion ordinary shares, the total issued and fully paid up shares of AIICO Insurance Plc has now increased from 16.32 billion ordinary shares of 50 kobo each. AIICO had projected to achieve N19.94bn gross premium income for the first quarter ending March 31, 2021.
In its Q1 earning forecast obtained from the Nigerian Stock Exchange (NSE), the insurance firm also projected N1.33bn as profit after tax and N1.40bn as profit before tax for the period. AIICO Insurance reported gross written premiums of N31.9 billion, representing 26 rise from the same period in 2019 (Q2’19: N25.4bn). According to the insurance firm, the growth was driven by sustained positive performance across the major lines of business of the group.
AIICO in a statement made available to newsmen said the group’s shareholders’ funds increased by 9.3
AIICO in a statement made available to newsmen said the group’s shareholders’ funds increased by 9.39 per cent from N27.9 billion in 2019 to N30.5 billion, driven by the group’s earnings for the period and its strong matching of long term asset and liabilities, despite volatile yields along the yield curve. However, the group’s profit before tax (PBT) reduced by 28 per cent to N2.17 billion, compared to N3.01 billion in Q2’19.
The reduction was as a result of changes in product mix in the retail life business due to changes in clients’ preferences.
These product preferences were, however, impacted by the lower interest yield environment – leading to a 71 per cent increase in the proportion of premiums that had to be transferred to life funds (shown as change in life fund).
Mr. Babatunde Fajemirokun, the MD/CEO, speaking on the financial results, stated: “Besides our operational resilience and strategic marketing within the period, our brand equity, advanced level of automation and business continuity plans enabled us to quickly adjust our business model to meet the emerging demands of the low touch economy, triggered by the global pandemic.
“The strong committed relationship we have built with our customers continue to endear them to us for repeat business, new businesses and referrals.”
AIICO Insurance recently disclosed that it had entered into discussions with FCMB Pensions Limited for the divestment of its interest in its Pension subsidiary, AIICO Pension Managers Limited.
The proposed sale will see a full uptake of AIICO’s 70 per cent stake in the company. A statement signed by Head, Strategic Marketing & Communications Department, AIICO, Segun Olalandu, said the proposed transaction was subject to the approvals of the National Pension Commission (Pen- Com) and the Federal Competition and Consumer Protection Commission (FCCPC).
