AXA Mansard Insurance plc, a member of the AXA Group, recorded a drop in its profits (before & after-tax), according to its financial results for the half-year ended June 30, 2021.
According to the report made available toÂ Brand Spur, the insurer’s Profit before Tax of N3.16bn, dropped 28% from N4.4bn recorded in June 2020 while its Profit after Tax of N2.29bn, also declined 37% from N3.61bn in June 2020.
Financial Highlights and Ratios – Income Statement Highlights
- Gross Written Premium of N37.18bn, up 22% from N30.54bn in June 2020
- Net Premium Income of N17.42bn, up 11% from N15.67bn in June 2020
- Investment and Other Income of N1.24bn, down 70% from 4.10bn in June 2020
- Operating Expenses of N4.41bn, up 43% N3.89bn in June 2020
Statement of Financial Position Highlights
- Total Assets of N102.90bn, up 9% from N94.43bn as of December 2020
- Insurance Liabilities of N40.89bn, up 38% from N29.60bn as of December 2020
- Group Shareholders’ Funds of N33.62bn, down 1% from N33.94bnÂ as of December 2020
- Insurance Shareholders’ Funds of N30.07bn, up 2% from N29.37bn as of December 2020
- Operating Expense Ratio of 17% (June 2020: 17%)
- Underwriting Expense Ratio of 8% (June 2020: 9%)
- Loss / Claims Ratio of 47% (June 2020: 45%)
- Re-Insurance Cost Ratio of 23% (June 2020: 25%)
- Return on Average Equity of 18.7% (June 2020: 16%)
- Return on Average Asset of 3.2% (June 2020: 4.5%)
- Earnings per Share of 6k (June 2020: 31k)
Commenting on the results, Mrs. Ngozi Ola-Israel, the Chief Financial Officer, said
“Despite the tough operating environment, AXA mansard delivered strong results in the half-year ended 30thÂ June 2021. The performance further re-enforces our resilience and capacity to produce sustainable results. We delivered N37bn in revenues, up 22% fromÂ N30.5bn recorded in the corresponding period last year.
The decline in PBT was driven by fair value losses on financial assets, which is reflective of the financial market conditions in Nigeria. We, however, remain committed to delivering strong growth and profitability in the 2ndÂ half of the year.
Commenting on AXA Mansard’s financials at the end of the first quarter of 2021, Mr. Kunle Ahmed, the Chief Executive Officer, AXA Mansard Insurance, saidÂ
“The revenue growth recorded, despite the effects of the economy and COVID-19 new normal on businesses and household income, is attributable to the support of our Partners, the continued improvement in service delivery to our clients and the commitments of our people.
We have maintained a strong performance, especially in our P & C and Health portfolios in the first six months of the year. We will continue to work hard to accelerate growth across all our lines of business by launching digital solutions to improve our engagement with Partners and refine our Risk Management advisory services as a value add to our various customers.