AIICO Insurance Plc has announced plans to achieve a profit after tax of ₦2.419 billion from continuing operations in the first quarter of 2025, as outlined in its regulatory filings.
A review of the company’s earnings forecast reveals a robust net operating cash flow projection of ₦9.495 billion during the period, signalling strong operational performance.
The insurance giant anticipates a gross written premium (GWP) of ₦50.543 billion for the first three months of 2025, attributing this to seasonal trends in premium collection. Further breakdown shows that non-life insurance business is expected to contribute 35% of the GWP, while Ordinary Life, Group Life, and Annuity businesses will account for 38.4%, 11.8%, and 14.9%, respectively.
The company also projects insurance revenue of ₦27.897 billion within the quarter, though this is expected to be significantly impacted by insurance service expenses and net expenses from reinsurance contracts.
According to the earnings forecast, the insurance service result for Q1 2025 is projected to stand at ₦130.05 million. However, AIICO expects significant contributions from its investment portfolio, with net investment income forecasted at ₦11.974 billion. The investment income will primarily be driven by bond investments and other financial assets.
Additionally, the company projects a profit of ₦28 million from deposit administration. The combined net insurance and investment result is estimated to reach ₦2.495 billion in the first quarter.
AIICO’s pretax profit is forecasted at ₦2.659 billion, which will be reduced by an estimated ₦240 million in income tax expenses.
The company clarified that its forecast excludes potential changes in yields for long-term assets and the valuation of foreign exchange holdings, noting that these variables could impact net fair value gains or losses and foreign exchange income or expenses.
This financial outlook underscores AIICO Insurance’s strategic focus on leveraging its diverse revenue streams and investment portfolio to navigate the evolving market landscape in 2025.