AIICO Insurance Made ₦11.3bn profit in H1 2025 

AIICO Insurance grew its investment income strongly in the first half of 2025, helped by higher returns on fixed-income assets and a turnaround in market valuations. Yet profit before tax fell as finance costs surged and reinsurance became more expensive.

What improved

Investment income rose 54% to ₦27.9bn, driven by better yields and a swing to a ₦4.6bn net fair-value gain after a loss in the same period last year. Combined with insurance operations, the net insurance and investment result increased to ₦18.8bn from ₦17.3bn. AIICO also recorded healthy top-line growth: gross written premium climbed 17% to ₦102.7bn, while insurance revenue rose 34% to ₦65.4bn. 

The cost pressure

Costs moved in different directions. Insurance service expenses edged up 4% to ₦40.4bn, but reinsurance costs more than doubled to ₦17.6bn. Even so, the insurance service result from issued contracts jumped to ₦25.0bn, up from ₦10.0bn, showing better underwriting margins despite pricier risk transfer. 

Profit and the impact of financing

Profit before tax fell 13% to ₦12.5bn as insurance and reinsurance finance expenses climbed to ₦20.7bn from ₦1.7bn a year earlier, reflecting tighter monetary conditions. Profit after tax was ₦11.3bn (slightly below ₦13.0bn last year), and EPS printed at 30 kobo versus 35 kobo a year ago. 

Balance sheet and liquidity

AIICO’s balance sheet expanded: total assets rose 10% to ₦456.3bn, powered by a 15% increase in financial assets to ₦391.5bn. Shareholders’ funds grew 14% to ₦76.4bn. Liquidity was tighter, however, with cash and cash equivalents down 40% to ₦21.1bn, suggesting the company shifted more cash into higher-yield, longer-term instruments.