IFS Capital Limited reported a sharp rise in full-year earnings for 2025, supported by narrowing losses in its insurance unit and steady performance in private credit.

The Singapore-based financial institution posted net profit after tax of SG$6.36 million for 2025, up 71.5% from a year earlier. Profit before tax reached SG$8.74 million, while net operating income rose 32.8% to SG$38.65 million, the company said.

The board proposed a first and final one-tier tax-exempt dividend of 0.80 Singapore cents per ordinary share, a 60% increase from 0.50 Singapore cents in 2024. The proposed payout implies a dividend yield of 4.49% based on the share price as of Feb. 20, 2026, subject to shareholder approval at the annual general meeting.

Insurance losses narrow

IFS Capital’s insurance business showed marked improvement during the year, as losses narrowed to SG$2.2 million from SG$5.1 million in 2024.

The company said net earned premiums more than doubled, while the portfolio loss ratio improved to 69% in 2025 from 115% a year earlier. A loss ratio above 100% indicates claims exceeded premiums collected.

“We continue to grow the scale of our insurance business through prudent underwriting, technology transformation, and most importantly, customer obsession,” the company said in the release.

The insurance segment forms one of three pillars in IFS Capital’s strategy, alongside private credit and asset management.

Group chief executive officer Randy Sim said, “In 2025, we continued to execute on our three-pillar strategy of integrating private credit, asset management, and insurance to create a reinforcing flywheel. As we grow, we are committed to delivering durable, long-term value to our shareholders; the proposed dividend reflects that commitment.”

Singapore insurance sector

The improvement in IFS Capital’s insurance results came against a backdrop of broad expansion in Singapore’s general insurance market. Singapore’s general insurance sector is on track to reach SG$8.6 billion in gross written premiums by 2030, according to projections from GlobalData, growing at a CAGR of 6.3% between 2026 and 2030, up from an estimated SG$6.7 billion in 2026. For 2025, the sector is estimated to expand by about 6.7%, supported by economic growth, stronger demand for health-related coverage, firmer motor insurance premiums, and stable property values.

Personal accident and health insurance is expected to remain the largest segment within general insurance, accounting for an estimated 24.7% share of gross written premiums in 2025.

Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said, “Medical inflation, an aging population, and the launch of new products such as embedded health insurance plans and youth-focused accident cover will boost PA&H demand, resilient property prices and ongoing infrastructure investment will keep the growth of property insurance upward during 2026–2030.”