AIICO Insurance released its 2024 second quarter results, showing pre-tax profit increased 121.55% year-over-year from 6.3 billion reported in 2023.
This significant growth was influenced by a spike in revenue by 49.23% year-over-year for the period ending June 30, 2024, largely due to the company’s upgrade from IFRS 4 to IFRS 17 accounting standards.
Net insurance and investments, fueled by increased patronage in Q2 of 2024, recorded a year-over-year rise by 116.51% at 14.1 billion from 6.5 billion recorded the previous year.
Key Highlights:
Revenue: +48.1 billion, 49.23% YoY
Net expenses from reinsurance: -8.2 billion, 50.57% YoY
Net insurance and investment result: +14.1 billion, 116.51% YoY
Pre-tax profit: +14.1 billion, 121.55% YoY
Profit for the period: +12.6 billion, 116.61% YoY
Earnings per share: N0.35,118.75% YoY
Total assets: +324.0 billion, 13.93% YoY
Commentary:
An increase in the pre-tax profit of the company in Q2 of 2024 by 121.55% is an indication of strong profitability and healthy business operations.
Upgrading from IFRS 4 to IFRS 17 represents the company’s willingness to adapt to current accounting practices and risk adjustment approaches towards insurance.
The upgrade strengthened both investor sentiment and customer patronage, surging YoY revenue by 49.23% for the period ending June 30, 2024.
Hence, net expenses climbed by 50.57% YoY owing to increased customer patronage and reinsurance of contracts. However, the high pre-tax profit of 14.1 billion made up for net expenses.
Increased earnings per share value at 35 kobo for Q2 of 2024 represents a 118.75% YoY rise in shareholder profits from common stocks as well as favourable investment sentiments over the company.
AIICO Insurance is riding strong buy momentum at a current share price of N1.03 and needs more market volume to propel the price to a short-term target zone of N1.50.