AIICO Insurance Forecasts ₦7.38bn Profit as IFRS 17 Reshapes Industry Metrics

AIICO Insurance Plc expects a profit after tax of ₦7.38 billion for the first half of 2025, bolstered by improving insurance service results and steady investment income. Despite foreign exchange volatility impacting 2024 earnings, the company anticipates a 280% increase in core insurance profits, signaling resilience amid Nigeria’s macroeconomic headwinds.

The insurer projects ₦114.3 billion in Gross Written Premium (GWP), with non-life policies contributing 39.3% and life insurance dominating at 50.7%. The shift to IFRS 17, effective since January 2023, has redefined performance metrics, prioritizing insurance service margins, expected to rise from 4% to 10% by mid-year.

Investment income, driven by bond holdings and financial assets, remains a key profit lever, despite ₦7.87 billion in net fair value losses. AIICO’s operating cash flow stands at ₦18.6 billion, though overall cash reserves are set to decline to ₦12.9 billion.

CEO Babatunde Fajemirokun emphasized a shift towards sustainable earnings, as AIICO reduces reliance on FX gains ₦10.8 billion in 2024 while strengthening underlying insurance margins.

With regulatory changes reshaping the sector, AIICO’s outlook reflects cautious optimism, underscoring its strategy of balancing growth with capital efficiency.

About AIICO Insurance

AIICO Insurance Plc is one of Nigeria’s leading insurance companies, offering a wide range of financial services, including life and general insurance, health insurance, pension management, and asset management. Founded in 1963, the company has grown into a key player in Nigeria’s insurance industry, serving both retail and corporate clients. AIICO’s strategy focuses on innovation, risk management, and long-term financial security for its customers. With a strong investment portfolio, the company continues to drive growth through its diversified insurance and financial services.