Insurance firm wins Pearl awards

Following its performance and earnings in the insurance sector in 2017, AIICO Insurance Plc has been rewarded with two awards by Performance, Earnings and Returns Leadership Awards.
The Executive Director of the company, Mr. Babatunde Fajemirokun, explained that the company emerged winner in the Sectoral Leadership Awards and the Market Excellence Awards categories.
He said that AIICO had a 54-year history as a life insurer, providing a variety of savings, investment-related and endowment products to its clients.
The director added that the products were long-term in nature with some having tenor as long as 25 to
30 years.
He explained that profits were most often realised over time, from underwriting and investment operations.
Fajemirokun said some of the firm’s liabilities were also sensitive to interest rate, growing when interest rate declined and reducing when
it rose.
These movements, he explained, were usually recognised on the income statement as changes in unearned premiums or life funds.
“In our financial statements, we recognise these movements as changes in unearned premiums; this affects earned premiums,” he said.
Fajemirokun also said that the benefits in the firm’s life business, which made up 76 per cent of total claims recorded in 2016, grew by 44 per cent compared to 2016, adding that this was because its life business was much larger today than it was in
2016.
Pearl Awards is an organisation that is endorsed by the Securities and Exchange Commission.