Nigeria, March 17 -- Although AIICO Insurance's 2024 profit increase was spectacular, a closer examination exposes significant difficulties in its basic operations.

Growing claims and insurance-related costs hurt the company's underwriting performance.

AIICO's main insurance businesses reported losses despite investment income helping to increase overall profit.

The key concern is whether AIICO can turn things around or if its reliance on investment returns will continue to conceal its underwriting flaws, even though a rebound is anticipated in the first half of 2025.

Underwriting challenges persist

In 2024, AIICO reported N108.268 billion in insurance income, a 49% YoY increase. However, insurance service costs increased 33% YoY to ...