International Energy Insurance Plc (IEI) posted its strongest earnings in more than a decade as higher investment returns and revaluations boosted the bottom line, giving the Nigerian underwriter momentum as it seeks to raise N15 billion in fresh equity to strengthen its finances.
Profit after tax surged more than threefold to N2.95 billion in 2024, up from N851 million a year earlier, according to the company’s audited financials filed on the Nigerian Exchange.
Insurance revenue more than doubled to N5.6 billion, while investment income and revaluations jumped to N2.5 billion from just N244 million in 2023. Earnings per share climbed to 230 kobo from 66 kobo.
The rebound reflects the firm’s efforts to reposition itself under majority shareholder Norrenberger Advisory Partners, which took control in 2021. “Management is committed to repositioning IEI as a major player in Nigeria’s insurance sector,” the company said in its results.
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It is executing a five-year strategy through 2027, focusing on operational efficiency, retail expansion, and new product innovation to capture a bigger share of the market.
Yet the strong earnings have not eliminated financial strain. Borrowings rose 17 percent to N16.5 billion in 2024, while accumulated losses stood at N22.3 billion. Much of the debt burden stems from a disputed ¥1.85 billion ($12 million) zero-coupon bond arranged with Daewoo Securities in 2008. After years of litigation and failed settlements, Norrenberger stepped in to restructure and gradually unwind the exposure.
To strengthen its balance sheet and comply with the National Insurance Commission’s minimum capital requirements, IEI is embarking on a N15 billion recapitalisation. At an April 2025 shareholder meeting, investors approved the creation of 30.9 billion new shares to expand paid-up capital from N642 million to more than N16 billion. The capital injection is expected to be raised through a combination of rights issues and private placements.
The insurer said the recapitalisation will provide liquidity to settle outstanding obligations and position the business for growth in its core energy and oil underwriting segments. Analysts note that a successful raise would also improve investor confidence in a company that has long struggled with solvency issues.
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Total assets slipped 4 percent to N16.9 billion in 2024, reflecting the disposal of some investments, though property holdings rose 30 percent to N8.3 billion. Insurance contract liabilities fell by more than half to N2.4 billion, signalling improved claims management. Still, operating expenses jumped 65 percent to N2.7 billion, underscoring cost pressures as the firm expands.
Shares of IEI closed its last trading day on Monday, September 1, 2025, at N3.34 per share on the Nigerian Stock Exchange (NGX), recording a 2.8 percent gain over its previous closing price of N3.25. International Energy began the year with a share price of N1.70 and has since gained 96.5 percent on that price valuation, ranking it 50th on the bourse in terms of year-to-date performance.
The market will be watching whether management can translate the record profit into a sustainable turnaround once the recapitalisation is complete.