AIICO Insurance Anticipates N19.5 billion Profit for 2025
AIICO Insurance Plc anticipates recording a net profit of N19.5 billion by the close of December 2025.
This projection, submitted to the Nigerian Exchange and endorsed by the company’s top executives—the Managing Director and Chief Financial Officer—outlines anticipated financial outcomes for the entire year.
Given AIICO’s pattern of surpassing estimates throughout 2025 so far, the final tally might align with or exceed this projection.
In the opening quarter of the year, AIICO forecasted N2.4 billion in after-tax profit alongside earnings per share of N0.07. The realised figures outperformed these, hitting N4.6 billion with EPS at N0.13.
Ahead of the mid-year results, the estimate was N7.3 billion and EPS of N0.20, yet the company achieved N11.2 billion and EPS of N0.31.
For the first nine months, the outlook is N14 billion with EPS of N0.38. Those numbers are pending release, though optimism persists that another beat is likely.
With this trajectory heading into the annual target of N19.5 billion, AIICO’s history points to potential overdelivery once more.
The firm saw insurance revenues climb 45 per cent to N32.8 billion in the latest quarter, up from N22.6 billion in the prior year’s equivalent period. A 12 per cent rise in gross premiums written, totalling N54.8 billion, fuelled this expansion.
Within that revenue pool, releases from the premium allocation approach reserve took the biggest slice at N21 billion.
Despite insurance service costs climbing 12 per cent to N19.9 billion and reinsurance contract net outflows surging 83 per cent to N8.7 billion, the insurance service outcome swelled to N4 billion—a staggering 3,237 per cent jump.
Over the first half of 2025, gross premiums written grew 17 per cent to N102.6 billion, pushing insurance revenues to N65.4 billion versus N48.8 billion a year earlier.
The premium allocation approach reserve again constituted the bulk of this figure.
Even as service expenses for insurance ticked up 4 per cent to N40.4 billion and reinsurance costs leapt 113 per cent, the insurance service performance reached N7.3 billion, up 320 per cent.
Such revenue advances, paired with returns from investments, flowed through to robust net earnings.
Net gains from investments, prior to fair value adjustments, advanced in both the initial quarter and the first half of the year.
For the first quarter, these reached N12.9 billion, a 68 per cent improvement over N7.6 billion.
That progress softened, though, once factoring in expenses—most notably an N8.7 billion shortfall in net insurance and reinsurance activities (versus a N13.3 billion gain last year)—yielding a combined insurance and investment net of N8 billion, down 23 per cent.
Through the first six months, pre-adjustment investment income climbed 54 per cent to N27.9 billion.
Incorporating those costs, including N20.7 billion in net insurance and reinsurance drag, resulted in an N18.7 billion insurance and investment net, up 9 per cent.
Hitting the yearly goal will hinge on sharpening operations through cost controls and prudent handling of insurance outlays to safeguard profit margins.
