AXA Mansard Insurance Plc Releases Its Earnings Forecast For Q2, 2022

AXA Mansard Insurance Plc released its earnings forecast for its Q2, 2022 financial period. In its forecast statement released via the Nigerian Stock Exchange website (ngxgroup.com) the company made the following remarks.

Key Insight

• The insurance giant predicts that gross premium written should hit NGN40.2 billion, while net premium income should hit NGN28.52 billion.
• The company also predicts that net claims expense should be moderated at NGN12.9 billion, while underwriting profit should grow to NGN6.5billion.
• Investment and other income should hit NGN2.27 billion, while operating expense should decline to NGN5.1 billion.
• The company forecast that Profit Before Taxation (PBT) should hit NGN3.44 billion with taxation oscillating around NGN959.9 million.
• Finally, after the above consideration, the company forecasts that Profit After Taxation (PAT) should hit NGN2.482 billion at the end of the Q2, 2022.

Drawdowns

• We understand that the company has reorganized its operations in such a way that addresses losses from failed investments or paid benefits.
• We understand from the above highlights that the company intends to engage in more profitable but safe investment ventures especially considering increasing its investments in the Nigerian stock exchange and others.
• The likely draw down from this forecast is that stock market analysts, investors and financial analysts will be looking forward to its release of its audited or unaudited FY Q2, 2022 when the time is right.
• The likely effect is that if the actual is less than earnings forecast, the share price will likely fall and if the actual earnings is greater than or equal to the forecast the share price will either remain the same or get higher or bullish.