AllCO grows life business profit by 44% in 2017

Leading underwriting firm, AIICO Insurance Plc, said profit from its life business, which makes up 76 per cent of total claims recorded in 2016, grew by 44 per cent compared to 2016.

This, the Chief Operating Officer, AIICO Insurance Plc, Babatunde Fajemirokun, revealed at a media parley in Lagos that the life business is much better today than in 2016.

He said: “The timing of these benefit payments is largely predetermined based on the contract with our policyholders. This is another area where life and general insurance diverge – in non-life, the timing of these cash flows are uncertain.

“The importance of investments to our life business operations thus becomes apparent – we must invest the premiums efficiently to make sure we can meet our obligations.

“Investment income is therefore an important indicator of performance in a life insurer, and trading in a volatile investment climate such as ours is not only recommended, it is wise.

“In our general business, which consists of short term products and policies, combined ratio reduced from 122 per cent to 102 per cent comparing Q3 2016 to 2017. Our claims ratio also reduced in 2017 from 55 per cent in 2016 to 49 per cent.”

AIICO Insurance Plc is a composite insurer with interests in Life, General, and Health insurance as well as Asset Management and Pensions.

He noted that the firm will in 2018, venture into micro insurance and Bancassurance businesses, stressing that talks have progressed with a bank on the Bancassurance operations.

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