The insurer was among the companies approved by NAICOM following the conclusion of the 12-month industry-wide recapitalisation exercise, according to a public notice issued by the commission on August 2, 2026.
With the approval, AIICO retained its composite insurance status, enabling it to maintain operations across both life and general business lines. The development highlights the company’s readiness to meet the industry’s revised regulatory standards aimed at improving financial strength, risk capacity, and stability within Nigeria’s insurance sector.
The latest regulatory endorsement signals AIICO’s compliance with the industry’s new capital framework, which was designed to improve the financial strength of insurers, enhance their ability to absorb risks, and promote greater confidence in the Nigerian insurance market.
In a statement released on Wednesday, the company said it did not need to raise additional equity during the recapitalisation exercise because its existing capital position was already above the revised regulatory requirement before the process commenced.
The licence approval also came alongside the release of AIICO’s second-quarter 2026 financial results, which reflected improved performance across major business indicators.
During the period, the insurer recorded insurance revenue of N74.9bn, representing a 14.5 per cent increase from the N65.4bn reported in the second quarter of 2025. The growth was supported by a gross written premium of N104bn, highlighting continued expansion in its underwriting activities.
Profit after tax also increased significantly, rising by 18.9 per cent to N13.4bn from N11.3bn achieved in the corresponding period of the previous year.
The company’s financial position strengthened further, with total assets growing by 13.2 per cent to N661bn, compared with N584bn recorded at the end of the 2025 financial year.
Commenting on the regulatory approval and the company’s financial performance, the Managing Director/Chief Executive Officer of AIICO Insurance Plc, Babatunde Fajemirokun, said the achievement demonstrated the insurer’s commitment to maintaining strong governance standards and delivering sustainable growth.
“This milestone reflects our unwavering commitment to regulatory compliance, financial strength, sound corporate governance, and the long-term sustainability of our business,” Fajemirokun said.
“More importantly, it reinforces our capacity to underwrite risks of greater scale, honour claims and obligations promptly, and continue protecting what matters most to our customers with confidence.”
The successful completion of the recapitalisation exercise marks a major transformation for Nigeria’s insurance sector, as regulators seek to build stronger institutions capable of retaining larger risks locally and competing more effectively within the broader financial services industry.
The initiative, supervised by NAICOM, introduced tougher capital requirements and a Risk-Based Capital (RBC) framework aimed at improving insurers’ solvency levels and strengthening their capacity to meet policyholders’ obligations.
The Nigerian Insurance Industry Reform Act 2025, which was signed into law on July 31, 2025, provided a 12-month transition period for insurance companies to comply with the new Minimum Capital Requirements (MCR), with the deadline ending on July 30, 2026.
Under the revised framework, standalone life insurance companies were required to maintain a minimum capital base of N10bn, general insurance operators were mandated to meet a N15bn threshold, while composite insurers offering both life and general insurance services were required to achieve N25bn in capitalisation.
The new requirements represent one of the most significant reforms in Nigeria’s insurance sector in recent years, with expectations that stronger balance sheets will improve risk-taking capacity, increase public confidence, and support long-term industry growth.