AIICO Insurance Targets N2.4bn as Profit in Q1-2025
AIICO Insurance Plc planned to rake in N2.419 billion as profit after tax from continue operations in the first quarter of 2025, according to its regulatory filling.
A review of the earnings forecast report showed that the company’s net operating cash flows was significantly higher at N9.495 billion in the same period.
Further details showed that the Insurance Company expects its gross written premium (GWP) to settle at N50.543 billion in the first three months in 2025.
The Insure said its 2025 gross written premium projections is made based on seasonal trends of premium receipt.
It added that non-Life business represents 35.0% of its estimated gross written premium while the Ordinary Life, Group Life and Annuity businesses represent 38.4%, 11.8% and 14.9% respectively.
The insurance revenue is expected to sit at N27.897 billion in the first quarter. The insurance service expenses is seen eating into this significantly.
AIICO also anticipates net expenses from reinsurance contracts to drag insurance service result for the period.
Its earnings forecast report showed that insurance service will settle at N130.05 million in the first quarter of 2025.
The company however expects significant income from investment in addition to about N28 million profit from deposit administration.
Its net investment income is expected to settle at N11.974 billion in Q1-2025, according to its earnings forecast. The company explained that Investment income will be driven largely by its bond investments and investment in other financial assets.
Its net insurance and investment result is estimated to reach N2.495 billion in the first quarter of 2025.
The company anticipates pretax profit of N2.659 billion, which was reduced by about N240 million income tax expenses in the earnings forecast.
“The forecast does not incorporate assumptions regarding changes in yields for long-terms assets held to match the long-term liabilities or the value of the company’s foreign exchange holdings.
“As a result, no forecast has been made for net fair value (losses)/ gains, and the impact on net foreign exchange income/ expenses is assumed to be minimal”, AIICO said. #AIICO Insurance Targets N2.4bn as Profit in Q1-2025#
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