AXA Mansard Declares N17.95bn Gross Premium, Margin Fall in Profit
AXA Mansard Insurance Plc, has announced N17.95 billion gross written premium for the half year (H1) ended June 30,2017. This represents 36 per cent rise from N13.22 billion gross written premium achieved by the company in the corresponding period in 2016.
According to the company, net premium income for the period stood at N6.46 billion, showing 18 per cent growth from N5.48 billion in 2016 , while investment and other income showed slight growth from N4.125 billion in 2016 to N4.134 billion in 2017.
Operating expenses for the period showed five per cent increase from N2.82 billion in 2016 to N2.96 billion. Profit before tax, however, showed five per cent slide, from N2.44 billion in 2016 to N2.32 billion in the period under review. Similarly, Profit After Tax, also showed six per cent decrease from N2.26 billion in 2016 to N2.12bn.
The AXA Mansard H1 year report, however, showed that the company’s total assets grew by 20 per cent to N65.81 billion from N54.96 billion as at December 2016, just as insurance liabilities went up by 78per cent from N14.43 billion to N25.71 billion as at December 2016. Shareholders’ funds also grew by six per cent from N17.4 billion in 2016 to N18.38 billion in 2017.
Some of the performance ratio showed that operating expenses ratio improved from 22 per cent in 2016 to 18 per cent, while accounting loss ratio stood at 78 per cent, compared with 80 per cent in 2016.
Commenting on the results, AXA Mansard Chef Financial Officer Mrs, Rashidat Adebsi said: “One of our key goals going into this year was to improve the efficiency of our reinsurance strategy as a way of managing the anticipated growth in our portfolios. The improvement in our accounting loss ratio from 80 percent to 78 percent in 2017 validates our efforts in this regard.”
Also commenting on the results, Chief Executive Officer of the company, Mr Kunle Ahmed said: “Our focus on identifying new growth areas in our markets continue to pay off as we grew revenues by 36 percent despite the challenging operating environment. We also strengthened the bottom-line through cost optimisation and efficient resource utilisation as demonstrated by the four per cent improvement in our operating expenses ratio”.
AXA Mansard Insurance, is a member of the AXA Group ,a worldwide leader in insurance and asset management, with 166,000 employees serving 107 million clients in 64 countries.