AIICO Insurance Plc has reported a 54 percent year-on-year rise in its investment income, driven by higher returns on fixed-income securities and a rebound in fair value adjustments.
According to the company’s financial statement, investment income stood out as the major driver of earnings, rising to N27.9 billion in the first half of 2025, compared to N18.1 billion in H1’2024.
The Group recorded a net fair value gain of N4.6 billion, contrasting sharply with the N11.4 billion loss posted in the prior period, underscoring effective portfolio positioning amid volatile markets.
Combined with underwriting activities, AIICO delivered a net insurance and investment result of N18.8 billion, up from N17.3 billion in H1 2024. This reinforced the role of diversified income streams in cushioning the impact of macroeconomic headwinds on the business.
Gross written premium rose 17 percent to N102.7 billion in the first half year, compared with N87.4 billion in 2024. Insurance revenue surged 34 percent to N65.4 billion, reflecting solid contributions from both life and non-life businesses.
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Insurance service expenses increased marginally by 4 percent to N40.4 billion, while reinsurance costs more than doubled to N17.6 billion, reflecting higher reliance on risk transfer mechanisms. Nonetheless, the insurance service result from contracts issued jumped to N25.0 billion, a 150 percent increase from N10.0 billion in H1 2024, highlighting improved underwriting margins.
AIICO reported a profit before tax of N12.5 billion, a 13 percent decrease from N14.4 billion the previous year, as rising finance costs impacted earnings. Insurance and reinsurance finance expenses surged to N20.7 billion, compared to just N1.7 billion in the prior year, reflecting the impact of monetary policy tightening and rising interest obligations.
After-tax profit settled at N11.3 billion, only slightly lower than the N13.0 billion recorded in the first half of 2024. Basic and diluted earnings per share closed at 30 kobo, compared to 35 kobo in the corresponding period.
The company’s balance sheet remained strong, with total assets up 10 percent to N456.3 billion from N416.4 billion at December 2024. Growth was led by a 15 percent increase in financial assets to N391.5 billion, supported by reinvestment into higher-yielding instruments.
Shareholders’ funds rose 14 percent to N76.4 billion, reflecting retained earnings and gains booked through the fair value reserve. However, liquidity contracted as cash and cash equivalents fell 40 percent to N21.1 billion, compared to N35.2 billion at year-end 2024, pointing to active redeployment of cash into longer-term assets.
Liquidity, however, was tighter, as cash and cash equivalents dropped 40 percent to N21.1 billion from N35.2 billion at the close of 2024, suggesting redeployment of cash into higher-yielding financial assets.
