Enterprise grows insurance revenue 10%, raises dividend despite lower profit

By Christabel DANSO ABEAM

Enterprise Group PLC delivered a strong financial performance in 2025, with insurance revenue rising 10 percent to GH¢1.75 billion. However, profit declined slightly due to the stronger cedi and the absence of a one-time reinsurance gain recorded in the previous period.

The performance was highlighted at the company’s 16th Annual General Meeting, where management said the year under review marked a period of repositioning and stronger execution under its new 2025–2027 strategy aimed at doubling revenue and profits over the next three years.

The Group’s profit after tax, according to the Chief Executive Officer (CEO) of Enterprise Group PLC, declined by 4 percent to GH¢352.8 million from GH¢366 million in 2024, while net income fell to GH¢734.9 million from GH¢821.6 million.

Mr. Daniel Larbi-Tieku also disclosed that the decline was mainly due to the appreciation of the cedi, which affected premium revenue and investment income, as well as the absence of a GH¢253 million one-time reinsurance gain recorded the previous year.

Despite the lower profit, the Board has proposed a final dividend of GH¢0.164 per share, representing a 30 percent increase over the previous year, reflecting confidence in the Group’s long-term growth strategy and commitment to delivering value to shareholders.

He also noted that the Group’s core insurance business remained strong throughout the year.

“Insurance revenue under IFRS 17 rose to GH¢1.75 billion from GH¢1.58 billion in 2024, driven by a 16.6 percent increase in general insurance revenue and a 5.3 percent rise in life insurance revenue.”

According to the CEO, the Group’s underlying profitability improved significantly. He said the insurance service result, which measures underwriting performance, increased by 79 percent to GH¢490 million from GH¢272.6 million in the previous year. The contractual service margin in the life insurance business also grew by 31 percent, showing stronger potential for future earnings.

Beyond insurance operations, pensions administration fee income increased by 29.9 percent to GH¢119.85 million, while investment income grew 27.4 percent to GH¢540.9 million.

The Group also strengthened its financial position, with total assets increasing by 22.3 percent to GH¢4.81 billion, mainly due to higher investments in debt securities. Its operations generated GH¢692.1 million in net cash during the year, leading to a net increase of GH¢112.1 million in cash and cash equivalents after investment and financing activities.

Mr. Larbi-Tieku further noted that the Group’s performance was supported by investments in technology, customer experience and operational efficiency, which are central to building a more resilient business.

He said Enterprise Group would continue to strengthen its businesses through innovation, improved service delivery and responsible practices as it works towards achieving its 2025–2027 strategic objectives.

The Group’s health insurance business also recorded growth during the year, supported by rising demand for healthcare solutions and increased support to policyholders.

Looking ahead, Mr. Larbi-Tieku said the focus would remain on sustaining growth, improving efficiency and leveraging opportunities across the Group’s various business lines.

The Chairman of Enterprise Group PLC, Keli Gadzekpo, said the company’s performance reflected its ability to navigate a challenging economic environment while maintaining focus on long-term growth.

He noted that 2025 presented a number of challenges, including currency volatility, changing interest rate conditions and broader economic pressures, but the Group remained resilient due to disciplined execution and a clear strategic direction.

According to him, the company’s ability to deliver growth despite these challenges demonstrated the strength of its business model and the commitment of management and employees.

He said the Group would continue to invest in its people, strengthen governance structures and pursue opportunities that create sustainable value for shareholders.

The Chairman also highlighted the importance of innovation and customer-focused solutions, noting that changing market conditions require businesses to continuously adapt to remain competitive.

Meanwhile, Managing Director of Enterprise Insurance, Akusua Ansah-Antwi, said the insurer recorded steady operational progress in 2025, with insurance service revenue growing by 17 percent to GH¢803 million.

She said the performance was driven largely by sustained growth from the company’s Agency and Broker channels, which remain key contributors to premium growth.

She explained that the company’s insurance service expenses declined by 23 percent to GH¢418 million, reflecting improved claims experience and stronger cost management.

However, she noted that profitability was affected by foreign exchange losses and higher reinsurance costs, resulting in profit after tax declining by 56 percent to GH¢31 million.

Ms. Ansah-Antwi said the company remained focused on improving the quality of growth through stronger underwriting discipline, product diversification and investments in digital solutions.

A major milestone during the year was the launch of Claims Xpress, a digital claims platform aimed at reducing processing times, improving transparency and enhancing the overall customer experience.

The company also introduced new products including the redesigned Foreign Travel Policy, Ekwanso Dwodwo for intercity travel protection and Ahoto Pii, an asset protection solution targeted at the informal sector.

She added that while Motor insurance remained the largest contributor to premium income, the company was working to expand into other product areas to reduce concentration risks and capture new market opportunities.

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