BY NKECHI NAECHE-ESEZOBOR–AIICO Insurance Plc has released its earnings forecast for the second quarter of 2025, on the Nigeria Exchange Group with a projection of N114.3billion in gross written premium.
Insurance revenue for the period is expected to stand at N67.2 billion. The 2025 projections according to the insurer is made based on seasonal trends of premium receipt with a consideration of actual premium receipt for the month of January 2025 while 2024 is actual premium cashflows.
The Non-Life business represents 39.3% of the stated GWP while the Retail Life and Group Life businesses represent 50.7% and10.0% respectively.
Investment income will be driven largely by our bond investments and our investment in other financial assets.
The following non cash transactions were included in the Statement of Profit or Loss and Other comprehensive income:
– Depreciation of Non-CURRENT asset in line with the policy
– Amortization of intangible assets
– Net fair value gain/loss on financial assets. This is subject to change based on market conditions.
The underwriter said profits in 2024 were affected by FX gains of about N10.8 billion due to the devaluation of the Naira. “We expect insurance service results to increase 280% over 2024, pointing to more sustainable performance resilient to exogenous shocks.
“We expect the underlying, sustainable business performance to drive profitability in 2025. Insurance service margins are expected to increase from 4% to about 10% by H1 2025.
