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International Energy Insurance (IEI) Plc, the general insurance business with a focus on oil and energy, had its profit slump on the back of a sharp reduction in the Motor Business.
The half-year 2025 profit of the insurer that has successfully been restructured with a view to delivering higher returns to shareholders dipped by 31.54 percent to N577.25 million from N843.28 million as at June 2024.
Revenue was down 23.43 percent to N2.32 billion in the period under review from N3.03 billion the previous year.
Drilling down the numbers shows the slump in earnings was brought on by a fall in revenue from the Motor segment by 40.71 percent to N1.50 billion as at June 2025.
It appears the insurer now generates more revenue from the Motor business that makes up 64.65 percent of total Group revenue, and that compares with the Oil and Gas business that contributes nothing to the overall top line (sales).
The company had undergone reorganisation and restructuring to salvage it from going bust as Norrenberger Advisory Partners Limited acquired a majority stake in the company.
IEI accumulated losses due to subsequent deteriorating earnings now stands at N21.87 billion as at June 2023 as negative shareholders’ funds indicates technical insolvency.
Analysts are saying that the insurer will have to either merge with other stringer firms or surrender itself to outright take over as they doubt it will meet the recapitalization deadline given its weak capital base and receding profit.
The 2025 Insurance Reform Bill (which we anticipate to be passed into law before the end of the year) proposes that the minimum capital required for life, non-life, and reinsurance businesses be raised to NGN10 billion, N15.00 billion, and N35 billion, respectively.
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