KEY POINTS

• AIICO Insurance Plc says it paid ₦68.1 billion in claims and benefits in 2025.
• The insurer provided retirement income to at least 28,000 annuitants across Nigeria.
• The company says it pays about ₦2.1 billion in annuity benefits monthly, or roughly ₦25 billion annually.
• AIICO says its annuity fund is held separately from its other businesses to protect retirees’ income.

MAIN STORY

AIICO Insurance Plc says it paid ₦68.1 billion in claims and benefits in 2025 and provided retirement income to at least 28,000 annuitants across Nigeria, as the insurer highlighted its commitment to supporting retirees with regular payments.

The company’s Chief Executive Officer, Babatunde Fajemirokun, disclosed the figures at AIICO’s 2026 Annuitants Forum on Friday, according to a statement made available to the News Agency of Nigeria (NAN) in Lagos on Monday.

The forum was themed “Still More to Live: Embracing Life Beyond Retirement”.

Fajemirokun said annuity payments helped retirees and their families meet everyday expenses, including rent, medication, school fees and community contributions.

“We understand that your annuity is not simply a payment. It might be rent, your grandchildren’s school fees, your contributions to your community, and your peace of mind.

“At AIICO Insurance, we do not take that lightly,” he said.

He described retirement as the start of a new phase of life rather than the end of a person’s productive years. He encouraged retirees to pursue personal interests, maintain relationships, continue learning and pass their experience on to younger generations.

“Retirement is not the closing chapter of our story. It is a new chapter, one with fewer deadlines and more freedom, fewer obligations and more opportunity,” he said.

Fajemirokun also said the company’s relationship with annuitants should extend beyond the payment of retirement benefits.

Gbenga Ilori, AIICO’s Executive Director of the Retail Business Division, said the company remained committed to listening to annuitants, understanding their experiences and improving its services.

Ilori said AIICO paid about ₦2.1 billion in annuity benefits every month, amounting to approximately ₦25 billion over 12 months.

He explained that the company’s annuity fund was kept separate from its other businesses and held by an independent, licensed pension fund custodian. According to him, this arrangement prevents the funds from being used to settle other claims or pledged as security for loans.

At the forum, Josephine Igbinedion, a retiree of the Nigerian Postal Authority, said AIICO made payments promptly and responded to requests for assistance.

Another annuitant, Dimeji Shoji, who switched from programmed withdrawal to annuity, said the explanations provided at the event had addressed some of his concerns about inflation.

Shoji said he had recommended annuity to about seven friends and encouraged other retirees to consider the option.

“I would advise people to consider the annuity option because it provides a guaranteed income for life,” he said.

THE ISSUES

Retirement can reduce or end the regular salary a person received during active employment, while expenses such as food, housing and healthcare continue. A dependable source of income therefore becomes important for retirees who need to plan their spending over many years.

An annuity provides regular payments to a retiree under an agreed arrangement. Unlike programmed withdrawal, which involves drawing down retirement savings over time, a life annuity is designed to provide income for the rest of the recipient’s life, subject to the terms of the contract.

However, regular payments do not automatically protect retirees from inflation. If prices rise faster than the income received, the same payment may buy fewer goods and services over time. Shoji’s comments at the forum highlight this concern among retirees considering their options.

The reported separation of AIICO’s annuity fund from its other businesses is also relevant to confidence in retirement payments. Such arrangements are intended to protect funds, although the details and terms of an individual annuity contract remain important when assessing its protections.

WHAT’S BEING SAID

• “We understand that your annuity is not simply a payment. It might be rent, your grandchildren’s school fees, your contributions to your community, and your peace of mind.

At AIICO Insurance, we do not take that lightly,” – Babatunde Fajemirokun, Chief Executive Officer of AIICO Insurance.

• “Retirement is not the closing chapter of our story. It is a new chapter, one with fewer deadlines and more freedom, fewer obligations and more opportunity,” – Babatunde Fajemirokun.
• “The arrangement prevents the funds from being used to settle other claims or pledge as security for loans, providing additional protection for annuitants’ retirement income,” – Gbenga Ilori, Executive Director, Retail Business Division of AIICO.
• “I would advise people to consider the annuity option because it provides a guaranteed income for life,” – Dimeji Shoji, an AIICO annuitant.

WHAT’S NEXT

AIICO says it will continue engaging with annuitants and working to improve service delivery. For retirees and people approaching retirement, the key consideration will be understanding how different retirement income options work, including their payment terms, protections and exposure to rising living costs.

BOTTOM LINE

AIICO reported ₦68.1 billion in claims and benefits paid in 2025 and regular annuity payments to thousands of retirees. The figures highlight the scale of its benefit payments, while retirees’ long-term financial security will also depend on the terms of their plans and how well their income keeps pace with living expenses.

Source: News Agency of Nigeria (NAN)