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Saturday, 3 May 2025

AIICO Insurance Sees 50% Profit Decline in Q1 2025 Despite Strong Revenue Growth


AIICO Insurance Plc has reported a 49.57% year-on-year decline in profit after tax for the first quarter of 2025, dropping from ₦9.26 billion in Q1 2024 to ₦4.67 billion.

According to the company’s unaudited financial results released via the Nigerian Exchange Limited (NGX), profit before tax also took a hit, falling by 50% from ₦10.28 billion to ₦5.17 billion over the same period.

Despite the sharp drop in earnings, AIICO delivered a strong top-line performance, with revenue rising by 45% from ₦22.67 billion in Q1 2024 to ₦32.81 billion in Q1 2025.

However, this revenue boost was not enough to offset higher expenses and pressure on margins. Total comprehensive income declined by 39% year-on-year, falling to ₦4.87 billion from ₦7.98 billion.

The company also reported a 12% increase in gross written premium, which rose from ₦49.08 billion to ₦54.81 billion — a sign of growing business activity. But insurance service expenses climbed in tandem, also up 12%, from ₦17.76 billion to ₦19.95 billion, indicating rising operational costs in a tough macroeconomic environment.

AIICO’s total assets grew modestly by 6%, from ₦416.38 billion in Q1 2024 to ₦439.72 billion in Q1 2025.

“This mix of performance highlights the company’s revenue strength while also underscoring pressures on margins and rising costs across the insurance sector.”

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