International Energy Insurance Navigates Market Headwinds to Post N688.8 Million Profit in 2025
International Energy Insurance Plc (IEI) has announced a pre-tax profit of N688.8 million for its full-year 2025 financial period. This result demonstrates the company’s resilience in a challenging operating environment, achieved despite a notable softening in top-line revenue compared to the previous year. The performance will be of interest to stakeholders monitoring the Ngx exchange traded funds landscape and the broader financial sector.
The insurer’s full-year insurance revenue, its primary earnings driver, settled at N4.08 billion. This figure represents a 27.37% decrease from the N5.6 billion reported in 2024. All insurance revenue was recognized using the Premium Allocation Approach (PAA). Concurrently, the company faced increased cost pressures, with insurance expenses rising 12.53% to N2.1 billion and net reinsurance costs growing 46.99% to N488.9 million.
A significant boost to the bottom line came from investment income, which surged 94% to N833.3 million, primarily fueled by interest from bank deposits. However, this was partially offset by a sharp decline in net gains on investment properties to N185.3 million from N1.9 billion, alongside a minor foreign exchange loss. After accounting for operating expenses and other items, the pre-tax profit stood at N688.8 million, a decline from the N3.1 billion recorded in 2024 but a positive result in context.
The company’s balance sheet showed strategic strengthening. Total assets were valued at N15.8 billion, slightly lower than the N16.8 billion in 2024. In a favorable shift, liabilities decreased sharply to N6.8 billion from N24.4 billion, largely due to a substantial reduction in borrowings. This deleveraging, akin to addressing a significant Fg indebtedness Gencos scenario, contributed to a stronger equity position. Total equity improved to N8.9 billion, with retained earnings rebounding decisively into positive territory.
This financial turnaround, achieved amidst revenue constraints, highlights effective balance sheet management. As the company moves forward, its strategies will be as closely watched as developments like a Kwara Community Appeals case or a major regulatory decision such as Uefa Approves Barcelona’s financial plan. The results also come at a time when officials may Fg denies siting certain projects, underscoring the importance of stable corporate performance in a dynamic economic climate.
