AIICO Delivers 182% Return to Investors, Targets N20bn Profit
AIICO Insurance Plc bolstered its shareholders wealth as market value surged by about 182% over positive price movement – while the company forecasted about N20bn profit for 2025.
The price surge is a reflecting of AIICO Insurance shareholders confidence, and expectation that the company’s earnings stream will remain rock solid.
The insurance operator’s share price increased by 5.5% to close at N4.03 on Friday amidst huge trading volume. AIICO Insurance Plc’s 36.605 billion shares outstanding on the Nigerian Exchange were valued at N147.519 billion.
Investors maintain positive sentiment as the insurance company sets a higher earnings projection for financial year 2025. In Sept, AIICO told shareholders and the Nigerian Exchange that the company is targeting N19.55 billion as profit after tax obligation for the financial year 2025, according to details from its earnings forecast reviewed.
The insurance company estimated that its gross written premium would berth at N195.896 billion as of Dec, 2025. The company explained that the non-life business represents 36.4% of the stated gross written premium, while the ordinary life and group life businesses represent 33.2% and 9.6%, respectively.
Insurance revenue is projected to reach N131.564 billion, and the company offset its insurance services expenses estimated at N93.001 billion, leaving the company with an insurance service result of N11.905 billion for the year.
AIICO anticipates insurance service margins to increase from a decrease of 2.9% to about 9.0% in financial year 2025. The company projected net investment income of N72.037 billion.
Profit before tax is projected at N20.630 billion for financial year 2025. With N1.080 billion in projected tax expenses, AIICO’s expectation is for the net income of the company to berth at N19.550 billion.
Shedding light on its bottom line, the insurer noted that its profits in 2024 were affected by FX gains of about N11.2 billion due to the devaluation of the Naira. AIICO Insurance’s forecasted figure for 2025, however, anticipates a net foreign exchange income of about N269 million for 2025.
“We expect insurance service results to increase 481% over 2024, pointing to more sustainable performance resilient to exogenous shocks. We expect the underlying, sustainable business performance to drive profitability in 2025.” Nigerian Treasury Bills Rally, Excess Liquidity Fuels Demand
