By Segun Elijah
Shareholders of AIICO Insurance Plc will get less return on their investment than the company offered them in the financial year ended December 31,2024.
The board of directors of one of the most capitalised insurance companies on the Nigerian Exchange Limited proposed a dividend of 7 kobo for shareholders. This brings dividend yield down by 59.9 percent to 1.67 percent compared with 4.17 percent enjoyed in the previous financial year.
With its N22.7 billion profit after tax (PAT) in 2025, up from N15.2 billion the year before, AIICO, in a notice published April 3, declared a dividend of N0.07 per share for the year, amounting to N2.5 billion. It declared the same dividend for the 2024 financial year.
The company said its net revenues climbed to N269 billion in the reporting year. However, its 2025 audited financial statement showed that insurance service expense (N94 billion), forex losses (N2.2 billion), contract expenses (N59 billion finance expenses, impairment losses, reinsurance,) and other operating expenses gutted over 70 percent of the revenues it generated.
One of the most capitalized insurers in Nigeria, AIICO’s dividend history reveals a 0.4 percentage growth rate in the last five years.
Considering the volume of expenses that need funding in 2026, the group faces restrictions in declaring a higher dividend, despite the 53 percent and 26.5 percent growth in PAT and revenues respectively in the reporting year.
