Atlantic Insurance Company Public Ltd has reported total profit attributable to shareholders of €20.18 million for 2025 and decided to propose a dividend of 17 cents per share, up from 14.5 cents the previous year.

The decision was taken during a board meeting held at the company’s headquarters in Nicosia, with the proposed dividend subject to approval at the annual general meeting scheduled for June 3, 2026.

The board also approved the annual report, management report and corporate governance report, along with the audited consolidated and separate financial statements for the year ended December 31, 2025.

The group’s profitability recorded a significant increase compared with €13.52 million in 2024, driven by stronger operating performance and higher investment income.

Operating profits rose by 32.9 per cent to €8.00 million, supported by improvements in insurance service results.

The insurance service result increased by 24.4 per cent to €9.56 million, reflecting higher insurance revenue and reduced service expenses.

Insurance revenue reached €27.50 million, up 5.3 per cent, mainly due to higher motor premiums rising by 6.1 per cent and property premiums increasing by 6.0 per cent.

Premiums in the health and liability sectors also recorded increases of 2.0 per cent and 1.3 per cent respectively.

Insurance service expenses declined by 5.0 per cent to €13.93 million, primarily due to a reduction in claims and other direct costs, particularly in the motor segment.

Claims and related costs fell by 7.7 per cent to €9.95 million, while direct claims handling expenses rose to €1.06 million from €0.98 million.

Acquisition costs increased by 2.6 per cent to €3.99 million, including commissions to intermediaries amounting to €1.59 million and operating acquisition expenses of €2.40 million.

Net expenses from reinsurance contracts rose to €3.74 million from €3.35 million, reflecting higher insured amounts in the property sector.

Other income from insurance operations increased to €319,000, mainly due to a higher share of profits from joint ventures, which rose to €268,000.

Operating expenses climbed by 3.2 per cent to €6.18 million, with staff costs, which account for 65 per cent of total operating expenses, increasing by 5.0 per cent.

At the same time, provisions for doubtful debts fell by €189,000 due to the repayment of older obligations, while discounts, telephone and office expenses also declined.

The group’s subsidiary Atlantic Securities recorded operating profits of €400,000 compared with €516,000 in 2024, with brokerage commission income falling by 11.2 per cent to €1.007 million.

The subsidiary’s profit after tax reached €488,000, slightly lower than €522,000 in the previous year.

Net financing income declined to €0.85 million from €1.01 million, as bond and treasury bill interest fell to €0.90 million and bank deposit interest dropped to €11,000.

Investment income rose sharply to €1.81 million from €819,000, including dividend income of €1.69 million and rental income of €122,000.

The group achieved investment gains of €10.77 million, despite a €4.14 million reduction in the fair value of the Fincap Ventures AIF V.C.I.C. Plc fund.

The total return on the investment portfolio reached 19.0 per cent, compared with 16.2 per cent in 2024.

Gains from revaluation of investment properties amounted to €127,000, while revaluation gains on owner-occupied properties reached €138,000.

Earnings per share attributable to shareholders rose to 51.82 cents, compared with 34.71 cents in 2024, while company earnings per share reached 51.56 cents.

Shareholders’ equity increased by 22.1 per cent to €81.12 million as of December 31, 2025, despite the payment of a €5.65 million dividend in November 2025.

The company’s solvency ratio under Solvency II stood at 284.3 per cent, significantly above the minimum requirement of 100 per cent.

The board described the results as particularly strong despite challenging market conditions and intense competition.

“The results of the year are considered excellent despite the difficulties in the operating environment,” the board said.

“The investment portfolio performance is also particularly satisfactory,” it added.

Regarding outlook, the company said there are no significant developments expected to materially affect current year performance.

The company’s management stated it is closely monitoring global uncertainties and regional challenges, including developments in the Middle East.

It also mentioned that the Cypriot economy is expected to have grown by around 3.2 per cent in 2025, supported by private consumption, rising household income and a resilient labour market.

The company noted that continued GDP growth highlights the resilience of the Cypriot economy despite external shocks such as the war in Ukraine, tensions in the Middle East and US tariffs.

The board and management reaffirmed their commitment to sustainable growth, high profitability and a strong financial position.

The company confirmed that copies of the approved annual report will be available free of charge at its headquarters.

The group’s activities remain focused on insurance operations across multiple sectors, including motor, health, property, liability, marine and aviation, as well as investment services and land development.

The company operates through its headquarters in Nicosia and branches in Larnaca, Limassol and Paphos, as well as through insurance agents.

No changes were recorded in the group’s activities during the year.

Capital expenditure on non-current assets amounted to €219,000 in 2025, compared with €269,000 in 2024.

The company also continues to invest in technology upgrades aimed at improving productivity, customer service and operational efficiency.

Environmental initiatives remain in place, including recycling programmes, energy-saving measures and the installation of photovoltaic systems at branch offices.

The company’s authorised share capital stands at €85 million, divided into 250 million ordinary shares, while issued share capital totals €13.24 million.

What is more, it stated that all shares are listed on the Cyprus Stock Exchange (CSE), with no restrictions on their transfer.

During the year, no share buybacks were executed and the company held no treasury shares as of December 31, 2025.

A previously approved share buyback programme remains in place, allowing purchases within 12 months under specified pricing conditions.

The company confirmed that no impairments were recognised on investments in subsidiaries during the year, although one subsidiary, Lyssi Investments Limited, entered voluntary liquidation on November 7, 2025.