AIICO Grows Premium To ₦104bn, Retains Composite Licence Without Fresh Capital

By LOVETH-AZODO CHIJIOKE, Lagos

AIICO Insurance Plc has retained its composite insurance licence after meeting the National Insurance Commission’s (NAICOM) new minimum capital requirement without raising fresh capital, even as the company reported a Gross Written Premium (GWP) of ₦104 billion and improved profitability in the second quarter of 2026.

The development follows NAICOM’s successful conclusion of the insurance industry’s 12-month recapitalisation programme under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which resulted in the issuance of new operating licence certificates to compliant insurance companies.

AIICO was among the operators listed by the Commission as having satisfied the revised capital threshold, allowing it to continue operating as a composite insurer across both life and general insurance businesses.

Unlike many operators that embarked on rights issues, private placements and other capital-raising initiatives to meet the new regulatory benchmark, AIICO said it complied without seeking additional capital, having maintained a capital base above the revised minimum requirement before the recapitalisation exercise.

The company said the development underscores its financial strength and long-term stability as the industry enters a new regulatory era centred on stronger capitalisation and enhanced underwriting capacity.

The regulatory milestone coincided with a strong second-quarter financial performance, with Gross Written Premium rising to ₦104 billion, while insurance revenue increased by 14.5 per cent to ₦74.9 billion from ₦65.4 billion recorded in the corresponding period of 2025.

Profit after tax also rose by 18.9 per cent to ₦13.4 billion, compared with ₦11.3 billion a year earlier, while total assets expanded by 13.2 per cent to ₦661 billion from ₦584 billion reported at the end of the 2025 financial year.

The company attributed the performance to sustained growth across its core businesses, improved underwriting capacity and continued customer confidence.

Commenting on the development, the  MD/CEO of AIICO Insurance, Mr. Babatunde Fajemirokun said the successful completion of the recapitalisation process reinforces the company’s commitment to regulatory compliance, sound corporate governance and long-term sustainability.

According to the Managing Director, the achievement further strengthens the company’s ability to underwrite larger risks, honour claims promptly and continue delivering value to policyholders and other stakeholders.

The company also acknowledged the continued support of its customers, noting that sustained trust and loyalty have remained critical to its growth and operational performance.

Industry analysts believe AIICO’s ability to retain its composite licence without raising fresh capital, alongside its improving earnings profile, places the insurer in a strong position as operators adjust to the more capital-intensive regulatory environment introduced by NAICOM.

With the recapitalisation exercise now concluded and stronger capital standards in place, the company said it is well-positioned to deepen its market presence while pursuing new growth opportunities in Nigeria’s evolving insurance industry.