AXA Mansard Insurance Plc, a member of the AXA Group has announced its financial results for the second quarter ended June 30, 2023, implementing the IFRS17 and IFRS9 accounting standards, which became effective on January 1, 2023.
Consequently, Gross earned premiums, now called Insurance Revenues become the principal revenue indicator given the change in accounting standards:
Within the review period, AXA Mansard recorded a 12 percent increase in Insurance revenue to N39 billion, with Property & Casualty down 5 percent to N14.5 billion, Life & Savings up 23 percent to N8.9 billion, while Health rose up by 27 percent to N15.7 billion.
Gross Written Premiums was up 22 percent to N54.8 billion, Property & Casualty went up 19 percent to N22.8 billion, Life & Savings rose 20 percent to N10.7 billion and health was up 26 percent to N21.3 billion.
The commercial activity of insurance operations will now be reported using insurance (earned) revenues as against gross written premiums (“GWP”). The reinsurance expenses will now also be reflected as “net expenses from reinsurance contracts held” with the main difference from what was previously reported being the netting of commissions received and claims recoveries from assumed reinsurance businesses. For asset management, commercial activity continues to be measured on revenues.
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Commenting on the results, Ngozi Ola-Israel, chief financial officer said, “In the first half of the year, we grew Gross Written premiums by 22 percent, delivering insurance revenue growth of 12 percent from N34.7bn to N39.0bn despite our challenging and evolving economic environment, particularly in the second quarter of the year.
This performance further reinforces our resilience and capacity to produce sustainable results even in a challenging business environment. Our operating performance also improved significantly, with PBT growth of 528 percent to N14.8 billion from N2.4 billion last year, owing to significant improvement in the P&C and L&S segments, net FX gains from devaluation effect as well as the significant recovery from the health segment.
Commenting on AXA Mansard’s financials at the end of the first half of 2023, Kunle Ahmed, the chief executive officer, AXA Mansard Insurance, said “We are proud to retain the trust of our customers, brokers, and partners despite the challenging economic environment.
“Our outstanding performance demonstrates our dedication to ensuring sustainable growth in the face of this environment as we achieved improved revenue and operating performance in the first half of the year.”
With our focus on resilience, we will remain an exceptional insurer with great financial strength, excellent underwriting capabilities and efficient claims management processes. Looking forward into the second half of the year, we are optimistic about the opportunities for our business through improved processes with our technical and digital capabilities while prioritizing our customer-centricity, growth and profitability, Ahmed said.
