AIICO: Buy, hold or sell?

AIICO Insurance Plc continues to show resilient financial performance in H1 2025. As of June, total assets increased to ₦456.25 billion, a 10% growth from December 2024, while shareholders’ equity rose to ₦75.9 billion. The company posted ₦102.68 billion in gross written premiums, representing a 17% year-on-year increase, driven by strong policy renewals and expanded market presence. Insurance revenue grew 34% to ₦65.43 billion over the prior year.

Underwriting results have also improved substantially, with insurance service result up 320% to ₦7.38 billion, reflecting enhanced pricing strategies and risk selection. AIICO recorded net investment income of ₦27.9 billion, a 54% rise, aided by a net fair value gain of ₦4.57 billion, a reversal from a loss in the same period last year.

However, rising costs continue to impact profitability. H1 2025 profit declined to ₦4.7 billion from ₦9.3 billion a year earlier, affected by increased reinsurance and operating expenses. Basic earnings per share dropped to 12 kobo from 25 kobo.

While analysts maintain a “hold” rating, the company’s strong capital base and operational scale present growth potential long term. Investors should watch cost trends closely before increasing their position in the stock.