By David Akinmola
AIICO Insurance Plc recorded a 24.9 per cent increase in pre-tax profit to N19.8 billion for the 2025 financial year, buoyed by strong growth in insurance underwriting and a sharp rise in investment income.
According to the group’s unaudited full-year results, profit before tax rose from N15.9 billion in 2024, with momentum strengthening in the fourth quarter, which contributed N3.9 billion, compared with N1.2 billion in the corresponding period of the previous year.
Gross written premiums climbed to N189.2 billion from N156.1 billion, reflecting heightened insurance activity across the market, while claims paid rose to N93.5 billion, underscoring increased policy utilisation.
Insurance revenue for the year grew to N137.6 billion, although service expenses of N94.5 billion and net reinsurance costs of N33.5 billion weighed on the top line. Even so, the group posted an insurance service result of N9.5 billion, a notable turnaround from the N3.0 billion loss recorded in 2024.
Investment income provided a major boost, rising to N60.5 billion, driven largely by interest income, which accounted for about 98 per cent of the total. After investment expenses and a net fair value gain of N24.03 billion on financial assets, net investment income surged to N82.4 billion, significantly outpacing underwriting earnings.
Total insurance contract expenses stood at N59.5 billion, resulting in a combined net insurance and investment result of N34.06 billion, up by N22.8 billion year-on-year. After other operating expenses of N17.4 billion, the group closed the year with a pre-tax profit of N19.8 billion.
AIICO’s balance sheet also strengthened markedly. Total assets rose to N579.6 billion from N416.4 billion in 2024, while total equity increased to N94.9 billion from N67.8 billion. Retained earnings grew by 39.5 per cent to N41.8 billion, reflecting improved profitability and capital accumulation.
Despite the strong financial performance, AIICO’s share price has yet to fully reflect the results. As at mid-trading on February 5, 2026, the stock was down 1.9 per cent at N4.12.
Analysts note that the company’s robust underwriting recovery, expanding investment income and stronger balance sheet position could support improved investor sentiment in the near term, particularly as confidence returns to Nigeria’s insurance market.
