AIICO Insurance’s 9M pre-tax profit rises 27.3% to N19.42 billion on investment gains

AIICO Insurance Plc reported a 27.3% increase in consolidated pre-tax profit to N19.42 billion for the nine months ended September 30, 2026, from N15.25 billion in the corresponding period of 2025, supported by higher insurance revenue and stronger investment income.

For the nine-month period, insurance revenue increased by 14.7% to N114.57 billion from N99.85 billion, while gross written premium rose by 6.6% to N163.58 billion from N153.40 billion.

Also, according to the company’s unaudited consolidated financial statements, profit after tax increased by 25.6% to N17.28 billion from N13.75 billion.

The improvement came despite higher insurance service expenses, as stronger returns from the group’s investment portfolio supported overall profitability.

Key Highlights

• Gross written premium: N163.58 billion (Up 6.6% YoY from N153.40 billion).
• Insurance revenue: N114.57 billion (Up 14.7% YoY from N99.85 billion).
• Insurance service expenses: N81.17 billion (Up 22.3% YoY from N66.39 billion).
• Insurance service result: N9.45 billion (Up 10.4% YoY from N8.56 billion).
• Earnings per share: 47 kobo (Up from 37 kobo).
• Total assets: N708.39 billion (Up 21.3% from N584.06 billion).
• Financial assets: N570.00 billion (Up 27.1% from N448.30 billion).
• Cash and cash equivalents: N54.20 billion (Down 27.1% from N74.38 billion).
• Total equity: N113.33 billion (Up 14.9% from N98.67 billion).

Driving the numbers

AIICO Insurance’s nine-month earnings growth was supported by higher insurance revenue and improved investment returns, although rising insurance service expenses continued to pressure underwriting profitability.

• Insurance revenue increased by 14.7% to N114.57 billion from N99.85 billion, while gross written premium rose to N163.58 billion from N153.40 billion.
• Life insurance contributed N61.47 billion to revenue, while general insurance generated N51.45 billion. The group’s health management business contributed another N1.65 billion.

Insurance service expenses increased by 22.3% to N81.17 billion from N66.39 billion, outpacing revenue growth and leaving the insurance service result from contracts issued broadly unchanged at N33.39 billion.

However, net reinsurance expenses declined to N23.94 billion from N24.90 billion, supporting a 10.4% increase in the overall insurance service result to N9.45 billion.

Investment income drives earnings growth

The more significant contribution to profitability came from investment activities.

• Net investment income before fair value changes increased by 32.8% to N58.80 billion from N44.28 billion, reflecting stronger returns from the group’s investment portfolio.
• However, net fair value gains declined to N14.22 billion from N17.84 billion, while foreign exchange losses increased to N2.02 billion from N1.38 billion.
• Net insurance and reinsurance finance expenses eased slightly to N43.08 billion from N44.01 billion.

Consequently, the combined insurance and investment result increased by 47.4% to N36.87 billion from N25.02 billion, providing the main support for earnings growth.

Nevertheless, other expenses increased to N20.28 billion from N11.72 billion, absorbing part of the improvement.

• Pre-tax profit consequently rose by 27.3% to N19.42 billion, while profit after tax increased by 25.6% to N17.28 billion, despite income tax expense rising to N2.14 billion from N1.50 billion.

Balance sheet and cash flow

AIICO Insurance’s total assets increased by 21.3% to N708.39 billion at September 30, 2026, from N584.06 billion at December 2025, driven mainly by an expansion in financial assets.

• Financial assets rose by 27.1% to N570.00 billion from N448.30 billion, accounting for approximately 80.5% of total assets.
• Reinsurance contract assets also increased to N34.24 billion from N27.99 billion, while trade receivables rose to N7.63 billion from N1.47 billion.
• Cash and cash equivalents, however, declined by 27.1% to N54.20 billion from N74.38 billion at the end of December 2025, despite the increase in reported earnings.

On the funding side, total liabilities increased by 22.6% to N595.06 billion from N485.39 billion, largely reflecting higher insurance contract liabilities and fixed income liabilities.

• Insurance contract liabilities increased to N412.09 billion from N345.12 billion, while fixed income liabilities rose to N140.22 billion from N97.45 billion.

Shareholders’ funds attributable to the parent increased by 14.8% to N112.55 billion from N98.00 billion, supported by higher retained earnings.

Market reaction

AIICO Insurance shares declined by 6.58% to close at N3.55 on Friday, October 30, 2026, from N3.80 in the preceding trading session.

The stock has lost 6.33% year-to-date from its opening price of N3.79 at the beginning of 2026, while its month-to-date return stood at negative 15.1%, according to the supplied share-price information.

Trading volume increased to 17.09 million shares on October 30 from 2.87 million shares in the previous session.

At the closing price of N3.55, AIICO Insurance’s market capitalisation stood at N129.95 billion.