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How AIICO Insurance Prevented N2.81bn FX Loss From Hurting Bottom Line

February 18, 2026
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How AIICO Insurance Prevented N2.81bn FX Loss From Hurting Bottom Line

Strong earnings shielded AIICO Insurance’s bottom line from a significant foreign exchange (FX) loss, enabling the company to close 2025 with a 25 percent increase in net income.

AIICO Insurance recorded N191.77 billion gross written premium between January and December 2025, exceeding the N159.42 billion achieved in 2024, representing a 20 percent increase.

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According to the company’s unaudited consolidated and separate financial statements for the year ended December 31, 2025, insurance revenue rose faster than expenses, as AIICO saw a 27 percent year-on-year growth in its turnover, which jumped from N108.35 billion to N137.66 billion.

The insurer strengthened its balance sheet by managing to keep its insurance service expense to a single-digit growth or 9 percent, as it went up to N94.54 billion in 2025, compared to the N86.63 billion incurred in the previous year.

AIICO also achieved a 99 percent growth in its insurance service result from insurance contracts issued, which grew to N43.11 billion during the period under review, from the N21.71 billion recorded in 2024.

In addition, the insurer incurred N33.56 billion as net expenses from reinsurance contracts in 2025, compared to the N24.72 billion recorded in 2024, indicating a 36 percent increase.

Consequently, AIICO was able to recover from the N3 billion loss recorded from providing insurance coverage in 2024, as the company earned N9.54 billion in insurance service result last year.

However, the firm recorded a N389.31 million loss from investment contracts in 2025, compared to the N97.08 million profit from investment contracts earned between the first quarter (Q1) and the fourth quarter (Q4) of the year before.

It also suffered a N2.81 billion net foreign exchange (FX) loss last year, failing to replicate the N11.17 billion net foreign exchange generated in 2024.

Also, net insurance and reinsurance finance expenses grew by 204 percent year-on-year, from N19.06 billion to N57.93 billion, while net insurance and investment result increased by 49 percent, from N22.84 billion to N34.06 billion.

In addition, other income increased from N2.07 billion to N3.25 billion, indicating a 56 percent year-on-year growth, however, other expenses declined by 48.33 percent, from N17.42 billion to N9 billion.

This enabled the company’s profit before tax (PBT) to rise by 25 percent to N19.88 billion between Q1 and Q4 of last year, from the N15.92 billion pretax profit earned in 2024.

As a result, AIICO’s income tax increased by 176 percent to N2.02 billion in 2025, from the previous year’s N730.95 million.

Consequently, AIICO closed last year with a N17.86 billion profit after tax (PAT), surpassing the N15.19 billion net income achieved in 2024, indicating an increase of 17.57 percent.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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