GCR Affirms AIICO Capital A-/A2 Issuer Ratings, Outlook Positive
GCR Ratings (GCR) has affirmed AIICO Capital Limited (AIICO Capital or the group)’s national scale long- and short-term issuer ratings of A-(NG) and A2(NG), respectively.
According to the rating note, the outlook was revised from stable to positive.
The ratings balance the group’s strong financial profile and parental support against a modest competitive position assessment, while the positive outlook reflects potentially better capitalisation over the outlook period (12 to 18 months), which supports a higher rating band.
AIICO Capital’s competitive position is supported by its affiliation with AIICO Insurance Plc, the parent company and one of Nigeria’s prominent financial services groups, as well as its track record of over a decade in asset management.
GCR said AIICO Capital has strengthened its market presence by adding microlending and issuing house licences, which should provide some business diversification and enhance its ability to offer a broader range of financial services.
As of 30 June 2026, AIICO Capital’s total assets under management (AUM) was NGN641.9 billion, representing an estimated 5.6% market share, which is meaningful within the Nigerian context, the rating note reads.
GCR hinted, however, that the company’s AUM base remains concentrated, with 69.1% managed on behalf of AIICO Insurance as of the same date, compared with 71.7% in 2025 and 78.9% in 2024.
Ratings analysts said this concentration is partly mitigated by continued growth in third-party funds to NGN198 billion as of June 2026 from NGN48.9 billion in 2023, driven by the group’s deliberate focus on diversifying its AUM base and expanding sources of growth beyond funds managed on behalf of AIICO Insurance.
“We expect the sustained growth in third-party funds to strengthen the group’s revenue diversification and operational scale over the next 12–18 months”.
AIICO capitalisation remains a slight negative rating factor, reflecting the quantum of on/off-balance-sheet exposure relative to the group’s core capital.
GCR said over the last three years, total risk exposure, mainly represented by Guaranteed Income Notes (GIN), has increased considerably, accounting for over 95% of total assets as of 30 June 2026.
Consequently, the GCR leverage ratio, measured as total core capital relative to on-and off-balance-sheet assets, declined to 4.8% as of 30 June 2026 from 6.4% as of 31 December 2025. However, after reflecting the NGN7.2 billion equity capital raised in July 2026, GCR leverage ratio is estimated at around 8.9%. Over the outlook period, further capital injection should see the leverage ratio register between 8.0% and 10%.
The group’s risk position is also a positive rating factor, given the quality of its investment assets, which have historically been predominantly treasury instruments.
However, in financial year 2025, GCR analysts noted a shift towards corporate commercial paper instruments, which accounted for 54.4% of total investment securities as of 31 December 2025, up from 28.6% in the prior year.
Although the group may benefit from the comparatively higher interest rates offered on corporate instruments, the relatively higher risk could weaken the group’s risk profile over the outlook period, GCR said.
On the lending side, exposures are adequately secured by liquid collateral, providing some protection against potential default losses. Foreign currency risk is contained and managed through adequate matching of foreign currency liabilities to assets.
The group’s Guaranteed Income Notes (GIN) remain the primary source of funding accounting for over 90% of the funding base.
Although these are contractually short-dated funding instruments and therefore subject to refinancing risk, historical behavioural patterns show the instruments tend to be sticky, as around 50% to 60% of maturing instruments are typically rolled over.
As of June 2026, GIN grew by 31.5% to NGN130.8 billion from NGN99.5 billion in 2025, representing 96.4% of the funding base as at the same date.
On the liquidity front, the group is expected to maintain a fairly strong liquid assets cover of 102.3% over the outlook, supported by increased allocation to short-term securities.
The rating is uplifted by parental support considerations from AIICO Insurance, based on brand assimilation, a strong track record of support, and the strategic importance of the business to the wider group.
The positive outlook reflects expectations of a stronger capital and leverage position over the next 12–18 months, supported by additional capital injections. Ratings analysts also expect the group to maintain sound liquidity and risk metrics over the outlook period. #GCR Affirms AIICO Capital A-/A2 Issuer Ratings, Outlook Positive# GCR Affirms AIICO Capital Limited Rating with Stable Outlook
