Diversified investment base spurts Mansard’s insurance 2013FY performance

Diversified investment base, expansion in retail business and aggressive market penetration have helped spurt 2013FY financial performance of Nigeria’s biggest insurer by market value Mansard a statement by the company says.

For the year ended December 2014, Mansard grew gross premium written down by 9 percent to N13.59 billion from N12.44 billion in 2012.

Net premium income in the review period rose by 6 percent to N7.50 billion from N7.11 billion in FY12, while net profits surged by 31 percent to N2.09 billion in  backs by tax write backs.

“We achieved growth in a rather difficult year where the industry experienced a decline in growth rate. Growth was stifled by the ‘No Premium, No Cover’ regulation,” said Tosin Runsewe the chief client officer of the company.

“The institutional end of the market was most affected. On the other hand, we had a much better cash flow into the business reflecting our compliance with the regulation”.

The Nigeria insurer has utilised the resources of the owners of the business efficiently as return as Return on Average Equity (ROAE) moved to 15 percent in FY13 from 12 percent as at FY12,

In addition, Return on Average Asset (ROAa) shrank to 8 percent in 12M13 as against 16percent in 12M12.

Based on businessDay analysis,Net margin which measures the profitability and efficiency of a firm climbed to 15.37 percent in 12M13 from 12.05 percent in 12M12.

Earnings per share EPS increased by 35.71 percent to 19k from 14k in FY 2012.

“This is the first time, since our renaissance, that we would record a single digit growth, but we understand the peculiarities of 2013. We are unwearied because we are seeing growing numbers in Mansard’s penetration of a resilient market,” said Rashidat Adebisi, Chief Financial Officer of the company.

“We also find the 2013 financial year interesting as we saw retail business being a major driver of both revenue and profit.”

Cash and cash equivalents were up by 89 percent y/y to N6.16 billion compared to N3.25 billion in the corresponding of 2012.

 Mansard’s total assets in the review period increased by 13 percent y/y to N36.13 billion from N32.11 billion as at 2013FY, while shareholders fund grew slightly to N14.27 billion.

“To this end, we successfully opened three more Mansard Welcome Centres in Lagos and a branch in Port Harcourt. This brings our distribution network to 14 Mansard Welcome Centres and 2 Branches in Abuja and Port Harcourt,” said Adebisi.

 Operating expenses ratio in the review period jumped to 49 percent as against 41 percent in 2012, while cost to sales ratio climbed to 64 percent in 12M13 from 57 percent in 12M12.

The insurance company’s share price closed at N2.21 on the floor of the Nigeria Stock Exchange.

Market capitalisation on the same day was N22.11 billion making it the largest Nigeria insurance company by market value

“Overall, we achieved 31 percent increase in our net earnings as a result of significant growth in the income from our increasingly diversified investment base,” said Runsewe.

BALA AUGIE