AXA Mansard Insurance Plc Records N28.64 Billion Profit

AXA Mansard Insurance Plc has said its gross written premium rose by 14 percent to N28.64bn by the end of the first quarter of 2022, from N25.08bn in March 2021.

According to a statement, the firm’s net premium income rose by 39 percent to N11.57bn, from N8.34bn in March 2021, while investment and other income fell by 25 percent to N1.23bn, from N1.64bn in March 2021.

It added that its operating expenses rose by one percent to N2.54bn from  N2.52bn in March 2021, while profit before tax declined by 84 percent to N470m, from N2.92bn in March 2021, and profit after tax declined by 85 percent from N2.63bn to N390m in March 2021.

Still speaking on the results, Ngozi Ola-Israel, the Chief Financial Officer, AXA Mansard Insurance, said, “We delivered double-digit revenue growth of 14 percent YoY from N25.07bn to N28.64bn and 39 percent YoY net income growth from 8.34bn to 11.57bn in the first quarter despite a challenging macroeconomic environment.

“However, we also grew life and health businesses by 58 percent and 24 percent respectively while our P & C business dipped five percent as a result of large unrenewable business written in 2021 and deliberate careful selection of risk in 2022.

“The decline of 84 percent and 85 percent respectively in the PBT and PAT is largely driven by higher claims experienced in our health portfolio coupled with fair value losses and foreign exchange losses.

“The core underlying earnings (excluding fair value gains/losses, capital gains/losses, and foreign exchange movements) dipped by 22 percent mainly driven by the higher claims experienced in our health portfolio.

"Across all lines of businesses, we continue to build necessary actuarial reserves to ensure we have a strong balance sheet.”

Speaking on the financial growth at the end of the first quarter of 2022, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said the insurer had begun the fiscal year, 2022, on a solid footing.

“Although we recorded a temporary setback on PBT despite growing revenue by double-digit, this reflects the macroeconomic uncertainties that continue to plague our business environment.

“The fundamentals of our business remain strong, and we remain optimistic that, with the support of our partners, we will deliver on our growth numbers in revenue and profitability at the end of the year.”

He further said that the firm would hold its annual general meeting to consider its 2021 results in July.

“In line with our usual practice of continuous dividend payments to our shareholders, we will be declaring a dividend of 25k per share which represents a growth of 14 percent when compared with the dividends paid in 2021,” he added.