For the second quarter of 2025, AIICO Insurance Plc has projected a gross written premium of N114.3billion, driven by seasonal trends in premium receipts and actual cash flows recorded in January 2025.
The company in its earnings forecast filed on the Nigeria Exchange on Wednesday explained that its expects insurance revenue for the period to reach N67.2billion with the non-life business accounting for 39.3 per cent of the stated gross written premium. Retail life and group life businesses are projected to contribute 50.7 per cent and 10 per cent, respectively.
The insurer anticipates an improved insurance service result, forecasting a 280 per cent increase over 2024. It expects insurance service margins to rise from four per cent to about 10 per cent by the end of June 2025.
AIICO also projects investment income to be largely driven by its bond investments and other financial assets, alongside an underlying business performance expected to support profitability.
Despite a projected net loss in cash and cash equivalents of N6.7bn due to financing and investing activities, the company expects a net cash inflow of N18.6bn from operating activities.
Highlights:
The Non-Life business represents 39.3% of the stated GWP while the Retail Life and
Group Life businesses represent 50.7% and 10.0% respectively.
Investment income will be driven largely by our bond investments and our investment in other financial assets.
The following non cash transactions were included in the Statement of Profit or Loss and Other comprehensive income:
Depreciation of Non-CURRENT asset in line with the policy
Amortisation of intangible assets
Net fair value gain/loss on financial assets. This is subject to change based on market conditions.
Profits in 2024 were affected by FX gains of about N10.8 billion due to the devaluation of the Naira.
“We expect insurance service results to increase 280% over 2024, pointing to more sustainable performance resilient to exogenous shocks. We expect the underlying, sustainable business performance to drive profitability in 2025. Insurance service margins are expected to increase from 4% to about 10% by H1 2025,” the notice signed by the company’s Managing Director, Babatunde Fajemirokun, and the Chief Finance Officer, Bisola Elias said.
