International Energy Insurance reports N4.2bn loss in 2018

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By Kayode Tokede

International Energy Insurance Plc has reported N4.2 billion loss in 2018 financial year as against N2.25billion reported in 2017 financial year.

The insurance company in its results to the Nigerian Stock Exchange (NSE) on Tuesday reported loss before income tax of N3.99billion in 2018 as against N1.21billion reported in 2017.

The company’s gross written premium dropped by 52.5per cent to N459.6million in 2018 from N966.86million reported in 2017.

The company in 2018 paid N522million claims as against N993.7million in 2017.

Nigerian NewsDirect gathered that 160 per cent increase in finance cost to N3.1billion in 2018 from N2.08billion in 2017 contributed to the company’s losses in the year under review.

International Energy Insurance’s total assets dropped by 11 per cent to N7.6billion in 2018 as against N8.49billion in 2017.

The company reported a total deficit of N11.87billlion in 2018 as against N7.7billion reported in 2017.

The company secretary, H. Michael & Co. in a statement said, “In addition to in-house training, the Group, where necessary sends its employees on various seminars, conferences, workshops and courses both locally and abroad.

“The staffare encouraged to improve themselves academically in any chosen profession, which is relevant to their job. The group refunds a substantial proportion of all expenses incurred on such courses on the successful completion of the course. The group incurred N7.3million (2017: N2.5million) in employees training during the year.

The company was sanctioned N14.3 million for late submission of financial statements.

According to the company, “Penalties levied against the company for late submission of financial statements as mentioned above the regulators amounted to N14.3million”

External auditors of the company, Ernst & Young  in its going concern report stated that, “The company recorded a net loss of N4.17billion (2017: N2.29 billion) while the Group recorded a net loss of N4.18billion (2017: N2.25billion) for the year ended December 31, 2018 and, as of that date, the company’s total liabilities exceeded its total assets by N11.80billion in 2018 from N7.62billion in 2017 while the group’s total liabilities exceeded its total assets by N11.97billion in 2018 as against N7.62billion in 2017.

“In addition, the company’s negative total assets as at December 31, 2018 of N11.80billion from N7.62billion is below the minimum regulator requirement of N3billion and the company did not meet the regulatory solvency margin whilst there was a shortfall of N2.21billion (2017: N1.28billion in the assets cover.

“The company no longer carries out oil and gas business and this led to its declining revenue over the years. The company has also not been able to meet its loan repayment obligations to Daeqoo Securities (Europe) Limited now Mirae Assets Securities (UK) Limited which has resulted in additional interest charges on unpaid principal and interest.

“The note indicates that these conditions along with other matters indicate the existence of a material uncertainty which may cast significant doubt on the Group and company’s ability to continue as a going concern.”

The principal activities of International Energy Insurance are the provision of general business risk underwriting and related financial services to corporate and retail customers.

The company has 81 per cent shareholding in IEI Anchor Pensions Managers Limited. IEI Anchor Pensions Managers Limited is engaged in Pension Fund Administration for employees in the private and public sector.