AIICO Insurance Plc solvency margin ratio has remained resilient in the face of macro uncertainties, exceeding the regulatory threshold as the lender continues to remain profitable.
 AIICO’s solvency ratio – the extra capital an insurer must hold over and above the claim amounts it is likely to incur – rose to 414 percent in the first three months of 2026 from 329 percent as at March 2025, according to data gathered by MoneyCentral.
Under the Nigeria Insurance Commission (NAICOM) Solvency II regime, a regulatory framework for the insurance industry, insurers must maintain a solvency capital requirement of at least 100 percent.
A higher ratio indicates the insurer has the financial strength to pay its claims and faces no threat of going concern.
It is important to note that the higher yield environment which supported investment income, contributes to the favorable solvency ratio.
In the insurance industry, the solvency ratio indicates an insurer’s ability to cover its liabilities and other obligations with its assets. In insurance, the solvency ratio is measured as the ratio of the Available Solvency Margin to the Required Solvency Margin.
Driven by premium income, investment income, and cost controls, profit after tax (PAT) increased by 11.77 percent to N5.22 billion as at March 2026 from N4.67 billion as at March 2025.
AIICO Insurance’s gross written premium spiked by 14.15 percent to N62.57 billion, up from N54.81 billion recorded in the corresponding period of the previous year. The company’s insurance revenue also rose by 11.79 percent to N36.66 billion, compared to N32.80 billion in the prior year.
Improved returns from its financial assets, including fixed-income securities and equities, helped lift investment income by 45.17 percent to N18.81 billion as at March 2026.
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