International Energy Insurance Plc has reported a pre-tax profit of N688.8 million for the 2025 financial year, maintaining profitability despite a notable slowdown in revenue and weaker investment revaluation gains.
Although the result represents a sharp decline from the N3.1 billion pre-tax profit recorded in 2024, it underscores the company’s ability to stay in the black amid rising insurance costs and softer underwriting income.
Full-year insurance revenue stood at N4.08 billion, down 27.37% year-on-year from N5.6 billion in 2024, reflecting reduced premium volumes and a more challenging operating environment.
Key highlights (FY2025 vs FY2024)
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Insurance revenue: N4.08 billion vs N5.6 billion
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Insurance service result: N1.4 billion vs N3.4 billion
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Investment income: N833.3 million, up 94.03% YoY
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Net gains on investment property: N185.3 million vs N1.9 billion
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Net investment income: N1.1 billion vs N2.4 billion
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Net insurance & investment result: N2.5 billion vs N5.8 billion
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Operating expenses: N1.7 billion vs N2.6 billion
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Pre-tax profit: N688.8 million vs N3.1 billion
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Premiums received: N3.3 billion vs N4.3 billion
What the numbers show
All insurance revenue for 2025 was generated from contracts recognised under the Premium Allocation Approach (PAA). However, profitability from core insurance operations weakened as insurance expenses rose by 12.53% to N2.1 billion, while net reinsurance costs jumped 46.99% to N488.9 million.
These pressures pushed the insurance service result down to N1.4 billion, less than half of the prior year’s level, though it remained a positive contributor to earnings.
On the investment side, performance was mixed. Investment income nearly doubled to N833.3 million, driven largely by interest income from bank deposits amounting to N739.6 million. This improvement helped cushion weaker underwriting performance.
However, net gains on investment properties declined sharply to N185.3 million, compared with N1.9 billion in 2024, while a marginal foreign exchange loss of N536,000 further weighed on returns. As a result, net investment income fell to N1.1 billion from N2.4 billion a year earlier.
After operating expenses of N1.7 billion and other income of N255.5 million, the company closed the year with a pre-tax profit of N688.8 million.
Balance sheet snapshot
International Energy Insurance’s balance sheet showed signs of strengthening in 2025:
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Total assets: N15.8 billion (2024: N16.8 billion)
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Major asset components included:
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Investment properties: N4.6 billion
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Financial assets at amortised cost: N4.07 billion
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Cash and cash equivalents: N3.6 billion
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Liabilities dropped significantly to N6.8 billion from N24.4 billion, driven mainly by a sharp reduction in borrowings to N2.8 billion from N16.4 billion.
Total equity improved to N8.9 billion, with retained earnings rebounding from a negative N22.3 billion to a positive N145.2 million, marking a key turnaround in shareholders’ funds.
What you should know
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Premiums received declined to N3.3 billion, reflecting softer underwriting activity.
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Claims and benefits paid rose to N735.9 million from N628.4 million.
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Despite revenue pressure, cost control and investment income helped sustain profitability.
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The company’s shares are up about 24% year-to-date in 2026 on the Nigerian Exchange, reflecting renewed investor confidence.
Overall, while 2025 was a tougher year operationally, International Energy Insurance’s return to profitability and improved balance sheet position signal a degree of resilience as it navigates a challenging insurance market.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
