- Proposes 12 kobo dividend
By Henry Uche
AIICO Insurance Plc has declared a normalized profit after tax of ₦23.7 billion, a 195.4% increase from its 2024 report. According to the insurer, the company didn’t just meet expectations; it smashed through them, exceeding forecasts by 23.1% despite slower customer demand due to inflation.
Despite economic turbulences, AIICO affirmed that, for the year ended December 31, 2025, its revenues jumped 26.5% to ₦137.0 billion from ₦108.4 billion in 2024, while gross premiums written (the total value of policies customers signed up for) rose 20.2% to ₦191.7 billion.
The life insurance arm’s revenue grew 34.1% to ₦69.6 billion, with normalized profits of 221% to ₦16.6 billion— driven by popular products like ordinary life policies and annuities that help people build secure retirements.
General insurance moved from a loss in 2024 to ₦3.7 billion insurance service result, up 171.2% year-on-year. This is due to smarter risk-picking and underwriting—basically, choosing the right customers and pricing policies fairly to avoid big payouts.
Meanwhile, AIICO Multishield, the health maintenance side, saw profits leap 414.2% to ₦144.3 million, fueled by more people signing up for prepaid health plans amid rising medical costs. Its Capital, the investment experts, boosted results of 108.6% to ₦15.4 billion in investment income, proving their knack for growing money wisely even in shaky markets.
Despite Nigeria’s headline inflation hovering around 15% and global jitters from Middle East tensions, AIICO’s insurance service margin flipped to a healthy 9.1% from a negative 2.8% in 2024. Net investment income hit ₦61.2 billion, up 45.9%, showing smart money management that cushions against economic bumps.
Managing Director/CEO of the Company, Babatunde Fajemirokun said, “In a year shaped by macroeconomic transition and evolving policy reforms, AIICO delivered solid performance across our businesses, reflecting steady execution of our strategy and our continued commitment to serve our clients with excellence”
Fajemirokun highlighted how insurance margins recovered dramatically, noting the team’s focus on ‘disciplined execution, prudent risk management, and targeted investments’ for 2026.
Under his watch, AIICO achieved a stellar 31.2% normalized return on equity—a measure of how efficiently the company turns shareholder investments into profits—and proposed a 12 kobo dividend per share, payable June 5, 2026, rewarding loyal investors.
Fajemirokun has focused on prioritizing client needs, adapting to changes like Central Bank efforts to tame inflation toward single digits, and building buffers against forex volatility. A strategy that positions the company ahead of the pack.
He added that, for existing customers, the aforementioned results mean peace of mind from a company with deep pockets (total comprehensive income up 89% to ₦33.5 billion) and less likely to falter when claims roll in.
“Prospective policyholders see an insurer that’s diversified, innovative, and customer-focused—offering everything from whole life policies to auto coverage and wealth-building mutual funds. Investors, take note: in a market where others wobble, AIICO’s normalized profits outshone one-off FX gains from 2024, signalling sustainable strength”
Looking ahead, as global growth moderates and Nigeria navigates reforms with $49.53 billion in reserves bolstering stability, AIICO assured it has geared up. Its ‘disciplined asset-liability management framework acts like a safety net, mitigating market swings for clients and shareholders alike.
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