Prime Business AfricaAIICO Insurance exceeded its topline and bottom line forecast for the first quarter (Q1) of 2025, after recording N54.81 billion gross written premium, compared to the N50.54 billion projected for the period.
According to the insurer’s Q1 2025 financial statement, it also surpassed the N49.08 billion gross written premium posted in the first quarter of last year, indicating a 12 percent year-on-year increase.
Join our WhatsApp ChannelAlso, its insurance revenue for the period under review, which was N32.80 billion in Q1 this year, exceeded the N27.87 billion projection and overshadowed the N22.66 billion recorded during the corresponding period in 2024.
Furthermore, insurance service expense increased by 12 percent year-on-year from N17.75 billion to N19.94 billion.
The company also recorded a threefold or 162 percent growth in its insurance service result from insurance contracts issued, which grew from N4,91 billion posted in Q1 2024 to N12.85 billion in Q1 2025.
The financial statement also reported that net expenses from reinsurance contracts increased to N8.79 billion from N4.79 billion, indicating an 83 percent year-on-year increase.
In addition, AIICO’s insurance service result grew significantly by 3237 percent to N4.06 billion in the first quarter of this year, surpassing the N121.87 million posted during the same period last year.
However, the balance sheet for the reviewed period was dented by a N50.24 million loss from investment contracts, as the company failed to replicate the N219.67 million profit from investment contracts reported in Q1 2024.
It was further impacted by a N25.17 million foreign exchange (FX) loss between January and March this year, compared to the N7.78 billion FX gain recorded in Q1 last year.
In the same vein, AIICO suffered a net insurance/reinsurance finance expenses of N8,79 billion in Q1 2025, against the N13.31 billion net insurance/reinsurance finance reported during the same period in 2024.
AIICO’s financial situation was further compounded by a 23 percent year-on-year decline in its net insurance and investment result, which dropped from N10.56 billion to N8.09 billion.
However, it was offset by the 136 percent year-on-year increase in other income, which grew to N614.34 million from N259.89 million, but the growth was overshadowed by the 549 percent rise in other expenses that went up from N545.54 million to N3.53 billion.
Consequently, AIICO’s profit before tax (PBT) fell to N5,16 billion in the first quarter of 2025, falling short of the N10,27 billion reported in Q1 2024, reflecting a decrease of 50 percent.
This led to the company paying less tax in Q1 2025, as it filed N499.53 million income tax, compared to N1.01 billion filed in the same period last year.
But the 51 percent drop in AIICO’s income tax had little impact on its bottom line, which fell by 49.58 percent year-on-year from N9.26 billion to N4.66 billion.
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