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AIICO Insurance Plc high solvency ratio instils confidence in investors that it has the financial strength to pay claims, meet future contingencies and business growth plans.
AIICO’s solvency ratio – the extra capital an insurer must hold over and above the claim amounts it is likely to incur – rose to 381 percent in the first nine months through September 2025 from 291 percent September 2024, above a 100 percent regulatory benchmark.
The insurance industry regulator measures the financial strength of Insurance companies using a Solvency Margin model. NAICOM generally expects insurers to comply with this capital adequacy requirement. Section 24 of the Insurance Act 2003 defines the solvency margin of as the difference between the admissible assets and liabilities, and this shall not be less than 15 percent of the net premium income (gross income less reinsurance premium paid), or the minimum capital base (₦5billion) whichever is higher.
Solvency ratio ratio of an insurance company’s eligible capital to its regulatory capital requirement. This ratio is used as an indication of an insurance company’s financial strength and its ability to withstand the risks they are exposed to such as falling asset prices or increased liabilities. It is usually expressed as a percentage and is calculated as follows: Solvency ratio = (eligible capital/regulatory capital requirement) x 100
AIICO Insurance gross premium written increased by 17.21 percent to N153.40 billion from N130.87 billion as at September 2024.
The company posted profit after tax (PAT) of N13.75 billion as at September 2025, which is 10.88 percent higher than 2024’s N12.40 billion.
With a total asset of N514.32 billion, AIICO insurance is the largest insurer by assets among the listed firms.
Incurred claims and other insurance service expenses were up 25.57 percent to N53.47 billion as at September 2025 as the insurer remains committed to meeting its obligations to policyholders. There has been an acceleration in meeting claims, which impresses customers who have confidence in the firm.
AIICO Insurance was founded in 1963 and offers a range of products, including life and general insurance, health insurance, and investment management services, aimed at creating and protecting wealth for individuals, families, and corporate customers.
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