AIICO Targets N14bn Profit for Nine Months Operation
One of Nigeria’s top insurance companies, AIICO Plc, has forecasted N14 billion as net profit for 9 months of financial year 2025, details from its regulatory filing on the Nigerian Exchange (NGX) revealed.
The company disclosed that 2025 projections is made based on seasonal trends of premium receipt with a consideration of actual premium receipt for the month of January 2025, while 2024 is actual premium cash flows.
AIICO Insurance added that its earnings forecast was prepared using IFRS 17, the new insurance reporting format. AIICO Insurance estimated that its gross written premium would reach N152.2 billion in the same period.
Details from its earnings forecast revealed that the company expects insurance revenue to print at N98.7 billion, offset by insurance service expenses of N78.038 billion. The knock-off effects of net expenses from reinsurance costs are expected to leave the company with N8.789 billion as insurance services results for the period.
AIICO said in the earnings forecast that non-life business represents 39.3% of the stated gross written premium, while the ordinary life and group life businesses represent 27.3% and 11.5%, respectively.
The company hinted that investment income will be driven largely by bond investments and investment in other financial assets. Profits in 2024 were affected by FX gains of about N11.8 billion due to the devaluation of the naira, AIICO Insurance Plc said in its earnings forecast.
“We expect insurance service results to increase 458% over 2024, pointing to more sustainable performance resilient to exogenous shocks. We expect the underlying, sustainable business performance to drive profitability in 2025”, the firm said.
AIICO Plc said insurance service margins are expected to increase from a decrease of 3.2% to about 8.9% by 9 months of financial year 2025. #AIICO Targets N14bn Profit for Nine Months Operation Ghana Exported $4bn Worth of Gold in 4-Month
