AIICO Insurance Plc delivered a strong financial performance in the first half of 2026, posting a 14.5% year-on-year increase in insurance revenue to N75 billion and a 20.6% rise in profit before tax to N15.1 billion, despite uncertainty surrounding new minimum capital requirements introduced under the NIIRA Act 2025.
The insurer reported that gross premium written increased by 2.0% to N104.7 billion, while insurance service result improved by 10.1% to N8.1 billion. Net investment income surged 43.9% to N39.7 billion, supporting an 18.9% increase in profit after tax to N13.4 billion.
Excluding foreign exchange effects, AIICO’s underlying performance was even stronger. Profit before tax rose 38.5% to N17.3 billion, while profit after tax climbed 36.2% to N15.3 billion. Basic earnings per share stood at 36 kobo.
Managing Director and Chief Executive Officer, Babatunde Fajemirokun, said the first half of the year was shaped by market reactions to the industry’s new capital requirements. “The impact of this has been felt in our non-life business where customers have prorated premiums in anticipation of the regulator’s pronouncement regarding companies that are adequately capitalized.”
According to him, higher contractual expenses compressed margins within the general insurance business. However, AIICO’s diversified business model enabled the group to maintain approximately 20% profit growth despite foreign exchange volatility. He expressed confidence that corporate business activity would normalize in the second half of 2026 as greater regulatory clarity emerges.
Chief Financial Officer Bisola Elias said insurance revenue reached N75.0 billion, while normalized earnings excluding foreign exchange effects recorded robust growth. She noted that the insurance service margin eased slightly to 10.8%, compared with 11.3% in the corresponding period of 2025, reflecting pressure on underwriting margins. Elias emphasized that disciplined risk management remains essential amid persistent geopolitical and macroeconomic uncertainty.
Segment Performance
Life Insurance was the group’s strongest-performing segment during the period with revenue increasing 25.5% to N40 billion while Insurance service result jumped 75.1% to N7.3 billion.
AIICO’s General (Non-life) Insurance business posted more modest growth as corporate customers shortened policy durations while awaiting clarity on capital requirements.
AIICO Capital, the group’s asset management subsidiary, delivered one of the strongest performances within the group. its Investment results rose 72.2% to N11.2 billion while profit before tax nearly tripled compared with the same period last year.
AIICO Multishield, the group’s health insurance subsidiary on the other hand, continued to face cost pressures driven by inflation as revenue declined 4.7%. and profit after tax fell 69% as rising healthcare costs proved difficult to pass through to customers.
