Enterprise Group posted consolidated profit after tax of GH¢289.2 million for the nine months ended September 30, 2025, though the figure represents a modest decline from the GH¢311.2 million recorded during the same period last year, according to unaudited financial statements released by the insurance and financial services conglomerate.
The results show Ghana’s oldest insurance company navigating a challenging environment while maintaining profitability across its diversified operations spanning life insurance, general insurance, pensions, real estate, and funeral services.
Group net income reached GH¢572.6 million, essentially flat compared to the GH¢573.6 million generated in the first nine months of 2024. What’s notable is how the company achieved similar top line numbers despite significant headwinds in the insurance finance line, which saw net insurance finance expenses balloon to GH¢274 million from just GH¢84.4 million a year earlier.
That GH¢190 million swing in finance costs tells a story about the investment environment Enterprise Group has been operating in. Higher interest rates and market volatility create both opportunities and challenges for insurers who manage substantial investment portfolios to back their policy liabilities.
The company’s core insurance operations delivered insurance revenue of GH¢1.33 billion, up from GH¢1.20 billion in the prior year period. However, insurance service expenses also climbed to GH¢794.6 million, while reinsurance arrangements cost the group GH¢175.4 million compared to a small gain of GH¢1.6 million last year. These dynamics compressed the net insurance service result to GH¢89.7 million from GH¢328.6 million previously.
Investment income provided crucial support, reaching GH¢411 million for the group compared to GH¢123.5 million in the same period of 2024. That’s more than tripling investment returns year over year, reflecting both the higher yield environment Ghana’s fixed income markets have been offering and potentially some strategic repositioning of the group’s investment portfolio.
On the balance sheet side, total assets expanded to GH¢4.61 billion from GH¢3.65 billion at the end of September 2024, representing a 26% increase. Investment securities led the growth, climbing to GH¢2.95 billion from GH¢2.10 billion, reinforcing the company’s role as a major institutional investor in Ghana’s capital markets.
Insurance contract liabilities, which represent the group’s obligations to policyholders, increased to GH¢1.99 billion from GH¢1.58 billion. The growth in liabilities tracks with the expansion in insurance revenue and reflects the accumulation of policy reserves as the business writes more coverage.
Cash and bank balances stood at GH¢413 million at quarter end, down from GH¢531.5 million a year earlier. The decline partly reflects the group’s decision to deploy more capital into higher yielding investment securities rather than hold excess cash in an inflationary environment.
Shareholders’ equity attributable to owners reached GH¢1.31 billion, up from GH¢1.23 billion, while the group paid out GH¢21.5 million in dividends during the period. Non controlling interests, representing minority stakes in subsidiaries like Enterprise Life and Enterprise Insurance, totaled GH¢456.9 million.
Operating cash flow generation remained robust at GH¢690.9 million, though investing activities consumed GH¢614.1 million, primarily for net acquisitions of investment securities and property and equipment purchases totaling GH¢76.9 million. The property investments likely relate to the group’s ongoing real estate development projects, including its 7th Avenue office complex.
Basic earnings per share came in at GH¢1.09, down from GH¢1.19 in the prior year period, reflecting the slight decline in attributable profit despite a stable share count of 258.9 million shares.
The results come as Enterprise Group’s share price has surged 72.2% year to date to GH¢3.41, making it one of the stronger performers on the Ghana Stock Exchange in 2025. That market performance suggests investors remain confident in the group’s long term trajectory despite the near term earnings compression.
Enterprise Group was recently named among the Financial Times’ top 100 fastest growing companies in Africa with a compound annual growth rate of 27.6%, recognition that underscores the group’s track record of navigating Ghana’s volatile macroeconomic environment while delivering consistent growth.
The company operates through seven business segments across Ghana, Nigeria, and The Gambia, with subsidiaries including Enterprise Life, Enterprise Insurance, Acacia Health, Enterprise Trustees, Enterprise Properties, and Enterprise Funeral Services. This diversification provides some insulation when individual business lines face headwinds.
Looking at the cash flow statement, the group generated GH¢760.6 million from operations before taxes and levies, paid GH¢48.7 million in income taxes, and remitted GH¢25 million in growth and sustainability levy, Ghana’s additional corporate tax imposed to support fiscal consolidation efforts.
What stands out in these results is Enterprise Group’s ability to maintain profitability while absorbing substantially higher insurance finance costs and reinsurance expenses. The investment income surge provided a crucial offset, but the compression in core insurance margins suggests the group faces ongoing pricing and underwriting discipline challenges in a competitive market where customers remain price sensitive.
For investors, the question heading into the final quarter is whether Enterprise Group can sustain its investment income momentum and whether insurance margins will stabilize or face further pressure. The 26% asset growth and expanding policy base position the company well for future earnings, but converting that growth into bottom line results remains the management challenge in what continues to be a difficult operating environment.
Source: newsghana.com.gh
