AIICO Insurance Plc is betting big on 2025, projecting a net profit of N19.5 billion by year-end—an outlook that could prove conservative given its recent habit of smashing forecasts.
The projection, filed with the Nigerian Exchange and signed off by the Managing Director and CFO, maps out expectations for the full year. But if history is any guide, AIICO may once again overshoot the mark.
In Q1, the insurer forecast N2.4 billion profit and earnings per share (EPS) of N0.07, but delivered nearly double at N4.6 billion and EPS of N0.13. The half-year results told the same story: a target of N7.3 billion profit with EPS of N0.20 turned into N11.2 billion and EPS of N0.31.
The nine-month outlook is pegged at N14 billion and EPS of N0.38, with results pending. Given the company’s momentum, analysts are already eyeing another beat.
Behind the surge is AIICO’s aggressive revenue growth. Insurance revenues jumped 45 per cent in the last quarter to N32.8 billion, driven by a 12 per cent lift in gross premiums written to N54.8 billion. Service outcomes soared 3,237 per cent to N4 billion despite rising costs and reinsurance outflows.
For the first half of 2025, gross premiums hit N102.6 billion, insurance revenues rose 34 per cent to N65.4 billion, and service results ballooned 320 per cent to N7.3 billion.
Investment gains have also kept the bottom line strong. Q1 saw N12.9 billion in returns—up 68 per cent year-on-year—while first-half investment income hit N27.9 billion, a 54 per cent jump.
Still, higher expenses, including surging reinsurance costs, remain a drag. In Q1, the insurance and investment net slipped 23 per cent to N8 billion after adjustments, though H1 managed a 9 per cent gain to N18.7 billion.
With momentum on its side, AIICO’s biggest challenge may not be hitting its N19.5 billion goal—it may be keeping expectations in check when it likely surpasses it.
