Capital Boost: AIICO Obtains New Operational Approval from NAICOM, Posts N13.4bn Quarterly Earnings

A new operational licence has been granted to AIICO Insurance Plc by the National Insurance Commission, confirming the company's full compliance with the recapitalisation requirements outlined in the Nigerian Insurance Industry Reform Act 2025.

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This development was announced in a public notice dated August 2, 2026, by NAICOM, following the conclusion of the 12-month sector-wide recapitalisation exercise, which listed AIICO among a select group of insurers certified to maintain full composite status across both life and general business lines.

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According to a statement released by the insurer on Wednesday, it did not require additional equity raising to meet the new regulatory threshold, having maintained a capital base above the revised minimum prior to the exercise.

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The licensing milestone coincided with the company's second-quarter 2026 financial results, which showed growth across key operational parameters, including a 14.5 per cent rise in insurance revenue to N74.9bn from N65.4bn recorded in Q2 2025.

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This increase was driven by a gross written premium of N104bn, and profit after tax expanded by 18.9 per cent to N13.4bn compared to N11.3bn in the corresponding period of the prior year.

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The company's balance sheet also reflected increased capacity, with total assets rising by 13.2 per cent to N661bn from N584bn reported at full-year 2025.

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Babatunde Fajemirokun, the Managing Director/Chief Executive Officer of AIICO Insurance Plc, stated that the development reflected sound corporate governance and operational execution, and said the milestone reflects the company's unwavering commitment to regulatory compliance, financial strength, sound corporate governance, and the long-term sustainability of its business.

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Fajemirokun also said that the milestone reinforces the company's capacity to underwrite risks of greater scale, honour claims and obligations promptly, and continue protecting what matters most to its customers with confidence.

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The recapitalisation exercise, administered by the National Insurance Commission, represents a major structural shift aimed at strengthening solvency, expanding domestic risk retention capacity, and driving consolidation within Nigeria's financial services landscape.

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The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on July 31, 2025, established a 12-month compliance window, ending July 30, 2026, for operators to meet significantly higher Minimum Capital Requirements (MCR) alongside a comprehensive Risk-Based Capital (RBC) framework.

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Under these revised mandates, single-line Life insurers saw their capital thresholds raised to N10 billion, General insurers were elevated to N15 billion, and composite operators handling both divisions were required to reach N25 billion, effectively setting a robust balance-sheet standard across the entire sector.