BY NKECHI NAECHE-ESEZOBOR—AIICO Insurance Plc reported a strong operating performance for the interim period ended 31 December 2025, delivering solid top-line growth and a significant improvement in underlying profitability. Insurance revenue increased by 27.0% year-on-year to ₦137.7 billion, driven by growth across core business lines and improved underwriting discipline.
On a normalized basis, excluding foreign exchange effects, profit after tax rose by 54.0% to ₦18.3 billion, compared with ₦11.9 billion in FY 2024. Premiums written grew 20.3% year-on-year to ₦191.8 billion, reflecting sustained momentum in both retail and commercial segments.
Insurance service results improved markedly to a profit of ₦9.5 billion, from a loss of ₦3.0 billion in the prior year. This was supported by a recovery in service margins to 6.9%, from -2.8% in FY 2024, highlighting stronger pricing, risk selection, and claims management.
Normalized profit before tax increased by 63.6% to ₦20.4 billion, while normalized return on equity stood at an annualized 25.5%, underscoring improved earnings quality. Reported profits in FY 2024 benefited from net foreign exchange gains of approximately ₦10.9 billion, compared with an FX loss of ₦2.7 billion in FY 2025 following the appreciation of the naira.
Relative to internal expectations, group revenues were 2.1% below forecasts, while normalized profits were 5.1% lower than projected, primarily due to adverse FX movements. Earnings for the period were 8.6% below forecast.
