AIICO Insurance Reports Profit Surge Amid Stock Decline

AIICO Insurance Plc (NGX: AIICO) announced a 27% increase in its nine-month pre-tax profit, reaching N19.4 billion, with profit after tax at N17.3 billion, surpassing its earlier forecast of N14.4 billion. Despite this, AIICO's shares dropped 6.6%.

Other insurers, including AXA Mansard Insurance Plc (NGX: MANSARD), which reported an 81% rise in profit after tax to N10.9 billion, and Coronation Insurance Plc (NGX: WAPIC), which saw a 71% profit increase, also experienced declines in their stock prices. The Insurance Index fell 5.52% in October and is down 13.64% year to date, contrasting sharply with gains in the banking and oil-and-gas sectors.

Concerns affecting valuations include dilution from capital raising under the Nigerian Insurance Industry Reform Act 2025, the quality of earnings primarily driven by investment portfolios rather than underwriting, and cash flow issues, as some insurers reported profits that did not convert into cash.