AIICO pays N52.6bn annuity in 5 years — Manager

AIICO Insurance Plc has paid a total of N52.6 billion to its annuity customers in the last five years.

Mr. Joseph Ogedengbe, Annuity Product Manager, AIICO, revealed this at a one-day training program on Wednesday in Lagos.

He said that the amount was paid between 2019 and 2023.

Ogendengbe explained that in 2019, the company paid N5.2 billion, N6 billion in 2020, N6.2 billion in 2021, N7.8 billion in 2022, and N12.6 billion in 2023.

He noted that the company was committed to ensuring retirees receive their payments as and when due.

According to him, under AIICO’s annuity portfolio, the insurance company offers immediate and deferred annuity plans.

The immediate annuity plan allows an individual to pay a single premium to purchase an annuity plan, after which an immediate periodic payment is made to the client either monthly or quarterly for life.

“Immediate annuity shares some common features with the PenCom retiree’s life annuity, but the source of funds is usually from the account of the individual and not the pension retirement savings accounts (RSAs) as applicable in RLA,” he said.

The deferred annuity is a life insurance product designed specifically for retirement and offers clients a fixed income from a chosen future date.

“It enables you to save money during your earning years, enjoy tax rebates, and earn income during your retirement,” Ogedengbe said.

He listed the benefits of annuity cover to include security, risk transfer mechanism, longevity risk, flexibility, and estate planning.