One of Nigeria’s leading insurance companies AIICO Insurance Plc has delivered a stellar financial performance driven by a strong underwriting as the company has enough cash to meet its obligation to policyholders.
Despite persistent inflationary pressures, weakened consumer spending, and global economic uncertainties, AIICO’s profit after tax (PAT) increased by 19 percent to N13.40 billion in the first six months of 2026 from N11.26 billion as at June 2025.
The insurer was able to sustain growth and profitability despite challenging market conditions, which validates an excellent underwriting capacity.
Net investment income hit N40.14 billion, up 43.81 percent, showing smart money management that cushions against economic bumps.
The insurer’s gross premium income was up 1.97 percent to N104.71 billion in June 2026 from N102.68 billion as at June 2025.
AIICO is well capitalised with strong buffers against claims and gyrations in the capital market as the solvency margin ratio stood at 420 percent as at June 2026 , according to MoneyCentral calculations.
Simply put, the company’s solvency margin of N7.22 billion(which is excess of admissible assets over admissible liabilities) is higher than minimum paid up capital of N3 billion.
A strong solvency margin ratio indicates an insurer has the financial strength to meet its obligations to policyholders or other liabilities without undermining its capital position.
In order to meet the minimum capital requirement mandated by the regulator, AIICO Insurance raised its authorized share capital from N10 billion to N18 billion. The insurer boosted paid-up capital via private placements with investors like LeapFrog Nigeria and AIICO Bahamas.
Meeting the minimum capital requirements will strengthen the insurer’s balance sheet so that it can take on more risk and deliver higher returns to shareholders who have invested their money with an expectation of bumper dividend and share appreciation.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
