AXA Mansard Insurance Plc has posted a strong increase in insurance revenue for the financial year ended December 31, 2025, even as foreign exchange volatility and rising claims significantly weighed on profitability.
The company recorded insurance revenue of ₦160.56 billion, representing a 22 per cent increase compared to the previous year, driven by growth across its Property & Casualty, Life & Savings, and Health business segments.
The insurer also reported Gross Written Premiums (GWP) of ₦170.87 billion, reflecting a 23 per cent rise year-on-year, supported by improved customer retention, new business acquisition, and expansion of its distribution channels.
Brandspur Banking News Desk reports that the performance underscores continued resilience in AXA Mansard’s core operations despite macroeconomic challenges, including inflationary pressures and foreign exchange instability affecting the broader financial environment.
Segment performance showed notable growth across key business lines. The Health segment emerged as the strongest contributor, recording substantial expansion, while Property & Casualty and Life & Savings also posted steady increases in premiums and revenue contributions.
Despite the topline growth, the company experienced a sharp decline in profitability. Profit Before Tax fell significantly due to the absence of substantial foreign exchange gains recorded in the prior year, coupled with a foreign exchange loss in the current reporting period.
The company noted that earnings in 2024 were supported by significant FX gains, while 2025 results reflected a reversal of that trend, highlighting the impact of currency volatility on financial performance.
AXA Mansard’s Insurance Service Result improved moderately, supported by stronger contributions from the Property & Casualty segment, although performance in Life & Savings and Health segments softened due to higher claims and increased technical reserves.
Operating expenses rose during the period, driven by elevated claims across major portfolios, including general accident and aviation, reflecting ongoing inflationary pressures within the operating environment.
Profit After Tax also recorded a steep decline, impacted by FX-related losses and regulatory changes, including an increase in capital gains tax, which resulted in a deferred tax adjustment affecting the bottom line.
Despite profitability pressures, the company maintained a strong balance sheet position. Total assets grew to ₦227.94 billion, while shareholders’ funds increased to ₦52.3 billion, indicating continued capital strength and financial stability.
The management stated that the company remains well-positioned to meet Nigeria’s revised insurance capital requirements, with capital levels exceeding regulatory thresholds for both life and non-life operations.
In response to the evolving regulatory landscape, the board opted not to declare dividends for the 2025 financial year, choosing instead to retain earnings to strengthen capital buffers ahead of anticipated industry recapitalisation.
Industry analysts note that AXA Mansard’s results reflect a broader trend within Nigeria’s insurance sector, where revenue growth continues to be robust, but profitability is increasingly influenced by macroeconomic volatility, rising claims, and regulatory adjustments.
The company has indicated plans to focus on underwriting discipline, operational efficiency, and digital expansion as part of its strategy to sustain growth and improve long-term profitability.
Market observers expect insurers to continue prioritising capital adequacy and risk management as the industry adapts to new financial reporting standards and regulatory requirements shaping the sector’s competitive outlook.
