AIICO Insurance Plc is projecting a profit after tax of N19.5 billion for the full year ending December 2025.
The forecast, filed on the Nigerian Exchange and signed by both the Managing Director and Chief Financial Officer, reflects the company’s expectations for its 12-month performance.
Assuming AIICO maintains its track record of beating projections since the start of the year, actual results could meet or even surpass this estimate.
- For the first three months of 2025, the company projected a profit after tax of N2.4 billion with earnings per share of N0.07. Actual results exceeded this, coming in at N4.6 billion with EPS of N0.13.
- Before the six-month mark, AIICO estimated N7.3 billion with EPS of N0.20 but delivered N11.2 billion with EPS of N0.31.
- For the nine-month period, the projection stands at N14 billion with EPS of N0.38. Results are yet to be released, but expectations remain that the company could outperform once again.
Looking ahead to the 12-month forecast of N19.5 billion, AIICO’s consistent record suggests it may once again exceed expectations.
Insurance revenue growth
AIICO reported a 45% growth in insurance revenue, rising to N32.8 billion from N22.6 billion in the same quarter of 2024. This was driven by a 12% increase in gross written premiums, which reached N54.8 billion.
- Of the total insurance revenue, PAA premium reserve release accounted for the largest portion at N21 billion.
Even with insurance service expenses of N19.9 billion, which rose by 12%, and net expenses from reinsurance contracts of N8.7 billion, which grew by 83%, the insurance service result expanded strongly to N4 billion, representing a remarkable 3,237% increase.
After the first half of 2025, gross written premiums advanced by 17% to N102.6 billion, leading to insurance revenue of N65.4 billion compared with N48.8 billion a year earlier.
- Once again, PAA premium reserve formed the largest part of this total.
Despite a 4% rise in insurance service expenses to N40.4 billion and a 113% jump in reinsurance expenses, the company’s insurance service result came in at N7.3 billion, reflecting growth of 320%.
These top-line gains, combined with investment income, were sufficient to filter through to strong bottom-line profitability.
Net investment income
For both the three-month and six-month periods, net investment income before fair value charges recorded growth.
In the three-month period, it reached N12.9 billion, up 68% from N7.6 billion.
- However, after accounting for costs, particularly net insurance and reinsurance expenses, which amounted to an N8.7 billion loss (compared to a profit of N13.3 billion in the previous year), the figure tapered into a net insurance and investment result of N8 billion, representing a 23% decline.
In H1 2025, net investment income before fair value rose to N27.9 billion, up 54%.
- After accounting for costs, especially net insurance and reinsurance expenses of N20.7 billion, the net insurance and investment result stood at N18.7 billion, reflecting a 9% increase.
To achieve its full-year forecast, the company would need to strengthen efficiency by cutting down operational costs and managing insurance expenses carefully so as not to weigh on bottom-line profitability.
