AIICO Insurance Plc delivered a resilient first-quarter performance for 2026, posting double-digit growth in insurance revenue and profit despite macroeconomic volatility and foreign exchange headwinds.
According to the company’s unaudited financial results for the three months ended March 31, 2026, insurance revenue rose 11.8% year-on-year to ₦36.67 billion, while gross premium written increased 14.2% to ₦62.58 billion, reflecting continued momentum across its core insurance businesses.
Profit before tax grew 13.2% to ₦5.85 billion, while profit after tax increased 11.8% to ₦5.22 billion.
Excluding one-off items, particularly foreign exchange-related effects, normalized profit after tax rose 32.4% to ₦6.52 billion, with annualized normalized return on equity reaching 30.3%, underscoring the strength of the Group’s underlying operations.
The Group’s insurance service result improved 2.9% to ₦4.18 billion, although the insurance service margin moderated to 11.4%, compared with 12.4% in the corresponding period of 2025, reflecting higher claims experience in some business segments.
Life Insurance Business Leads Growth
AIICO’s Life Insurance business remained the Group’s strongest earnings driver during the quarter.
Insurance revenue from the segment climbed 19.5% to ₦19.40 billion, while insurance service result increased 3.9%. Normalized profit after tax surged 36.8% to ₦4.05 billion, supported by sustained premium growth and disciplined risk management.
General Insurance Faces Claims Pressure
The General Insurance business recorded a 3.6% increase in insurance revenue to ₦16.62 billion.
However, insurance service result declined 21.2% as higher claims, particularly within the energy portfolio, weighed on underwriting performance. Despite the pressure, normalized profit after tax remained relatively stable at approximately ₦1.85 billion.
Health and Asset Management Deliver Strong Earnings
AIICO Multishield, the Group’s health insurance subsidiary, delivered one of the strongest performances during the quarter.
Insurance revenue increased 23.8%, while insurance service result surged 90.8%. Profit after tax rose 74.4% to ₦309.7 million, reflecting improved operating efficiency and stronger underwriting performance.
Meanwhile, AIICO Capital recorded a 64.1% increase in investment results to ₦5.09 billion, driving a 196% rise in profit after tax to ₦265.4 million.
Building on Strong FY2025 Performance
The first-quarter results build on a strong performance in the 2025 financial year, when AIICO reported ₦137.0 billion in revenue, representing 26.5% year-on-year growth.
Normalized profit after tax climbed 195.4% to ₦23.7 billion, prompting the Board to propose a dividend of 12 kobo per share, payable on June 5, 2026, subject to shareholder approval at the Annual General Meeting.
Managing Director and Chief Executive Officer, Babatunde Fajemirokun, said the results reflected the resilience of AIICO’s core insurance operations and the benefits of disciplined execution despite a volatile operating environment.
Chief Financial Officer, Bisola Elias, noted that the Group achieved healthy revenue growth and a 32.4% increase in normalized earnings while maintaining disciplined underwriting and prudent risk selection.
Although reported earnings came in approximately 8.5% below market expectations, largely due to foreign exchange losses arising from the naira’s appreciation, insurance revenue exceeded forecasts by 3.1%, while normalized earnings significantly outperformed analysts’ expectations.
Looking ahead, AIICO said it remains focused on disciplined asset-liability management as it navigates geopolitical uncertainty, elevated energy prices and domestic inflation. The Group expects its strong balance sheet, robust risk governance framework and diversified business model to support continued growth and long-term value creation.
