The Managing Director of the Aureol Insurance Company (AIC), Raymond Macauley, has disclosed at the company’s 36th Annual General Meeting (AGM) that even after 36 years of existence the company has remained ferocious, adding that AIC has provided its clients with the assurance and protection needed in this volatile financial world.
He informed the AGM held on Friday 28 July 2023 at the District Women’s Fellowship Multi-Purpose Hall at King Harman Road in Freetown, and virtually, that despite the economic challenges; the company made a Gross Written Premium of Le52.21 million in 2022 as compared to Le36.54 million the previous year reflecting a 42.55% growth.
Giving an overview of the Sierra Leone economy, the Managing Director disclosed that inflation rose to 26.1 % in 2022 from 11.9% in 2021 which was primarily driven by food and fuel inflation and deprecation of the Leone.
Mr Macauley stated that the fiscal deficit declined to an estimated 4.8% of GDP from 7.3% in 2021 due to higher grants and that public debit increased to an estimated 92.9% of the Gross Domestic Product from 79.8% in 2021, adding that the exchange rate was Le17,664 (old Leones) to the United States Dollar at the end of 2022 compared to Le11,282 (old Leones) to US1 as at 1st January 2022 which accounts for about 56.57% drop in the value of the Leones.
The AIC Managing Director continued that the insurance industry continues to be characterized by declining insurance rates and market shares, stiff and unhealthy competition primarily driven by strong bargaining powers of buyers and slow growth which were a reflection of the overall economy.
He underscored that the industry had to grapple with other socio-economic challenges including the weak external demand for major exports, particularly diamonds and decline in the mining, transport, trade and tourism sectors.
He informed shareholders further that amidst all these challenges, the company recorded a Profit Before Tax of Le7.19 million for the period to 31st December 2022 compared to Le4.73 million in 2021, an increase of 52%.
He revealed that the Board was pleased to recommend a dividend of Le0.65 cents per shares to all members of the company.
“Claims paid for the year to 31st December 2022 was Le21.85 million as compared to Le13.38 million for the corresponding period to 31st December 2021 (an increase of 63.3%) articulating that this is inclusive of two marine hull claims which amounted to Le.1.37, five fire and flood losses amounting to Le933,000 and disclosed that the claims ratio for the period under review was 54.58% as compared to 44.62% for the same period to 31st December 2021,” Mr Macauley asserted.
Raymond Macauley intimated that the company was extremely proud of its claim-paying ability and would like to assure its numerous clients that the AIC would continue to meet all genuine claims obligations promptly.
Highlighting AIC’s Corporate Social Responsibility (CSR), he revealed that they organized an Essay Competition for Primary and Secondary Schools in addition to Tertiary Institutions on the topic: “Promoting Public Trust in Insurance in Sierra Leone”, and that various cash prizes were awarded to the winners during the company’s Long Service Award and Dinner at the Aqua Sports Club in December 2022.
Furthermore, as part of its CSR, AIC supported and sponsored a host of organizations within the course of the year among them the Freetown Cheshire Home where various items including provisions, medication and foam mattresses were presented by the Board, Management and Staff to the management of the Home.
According to the Managing Director, members of staff benefited from physical and virtual training programmes both locally and overseas and that the AIC bade farewell to Mohamed Kamara for his 22 years loyal and dedicated service to the company and commended the Directors, Shareholders, Management, Staff, Customers, Reinsurers, Consulting Actuaries, Brokers and Agents of the company for yet another successful year in spite of the fluctuating market conditions.
Concluding, Raymond Macauley extended heartfelt condolences to those mourning the loss of their customers and shareholders who died within the period under review and reiterated that AIC would continue to render quality service that would exceed the expectations of their valued and loyal customers.