The Solvency II ratio for AIICO Insurance Plc has remained resilient in spite of the macro uncertainties, underscoring consistent earnings growth as there has been improvement in product lines across all business segments.
Solvency margin ratio stood at 218 percent as at June 2024, although it is lower than 397 percent it recorded as at December 2023, according to data from the company’s website.
Drilling down into the financial statement shows the total admissible assets of N313.90 billion, which exceeds total admissible liabilities of N258.42 billion, and resulting in an excess of N55.48 billion.
A firm is solvent when it has the fundamental financial strength to meet its long term obligations and settle  to the policyholders in the form of claims payment as at when due.
The solvency ratio of an insurance company is the size of its capital relative to all risks it has taken. The solvency ratio is a measure of the risk an insurer faces of claims that it cannot absorb. The amount of premium written is a better measure than the total amount insured because the level of premiums is linked to the likelihood of claims.
AIICO Insurance is Nigeria’s largest insurance company with total asset of N355.82 billion as at June 2024.
With a solid solvency position that makes it invulnerable to bankruptcy and a shareholders fund of N66 billion the insurer is poised to meet the recapitalisation requirement of the regulator.
Net income or profit after tax (PAT) spiked by 92.54 percent to N12.92 billion in the period under review from N6.71 billion the previous year.
Revenue was up 48 percent to N48.81 billion as at June 2024 from N32.98 billion the previous year.
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