Mansard Insurance plc, provider of risk and investment management services, has announced its audited half year results for the period ended June 30, 2014, with a 27 percent growth in both Gross Premium Written (GPW) and Net Premium Income (NPI) for the half year ended June 2014.
The company in statement made available in Lagos highlighted that its GPW earnings for the period ended June 2014, stood at N9. 61 billion up from N37.55 billion in the corresponding period of 2013.
In the same breadth, it declared N4.47 billion NPI against the N3.51 billion earned in the corresponding period of 2013.
The company stated that NPI growth was fuelled by on “back of high retention rate due to retail growth.”
Speaking on these successes, Tosin Runsewe, Mansard’s chief client officer, stated that the company’s positive “Gross Premium Written growth is driven by growth increased patronage from both institutional and retail clients.”
Speaking further on the company’s half year results, Runsewe, said: “This year, revenue growth has been driven by deepening relationships through superior customer service delivery and our growing accessibility to customers. Our medium term focus is to rapidly grow our distribution channels such that our accessibility to all customers will be with ease and convenience. We expect the first half of 2014 growth pattern to continue during the second half of the year.”
The insurance company also declared “trade receivables of N328 million (December 2013: N166m), up by 97 percent, which regularised in July based on cash backed credit notes which have a 30 day settlement timeline.”
Other positive results also include: Total assets of N39.59 billion, an increase of 10 percent (December 2013: N36.13bn), driven by growth in insurance liabilities and Insurance liabilities of N10.52 billion (December 2013: N7.69bn), up by 37 percent, due to growth in GPI.
However, Mansard Insurance recorded drop in its profit before tax of N993 million (June 2013: N2.06bn), a decrease of 52 percent. A trickling down from the decrease in investment income and also profit after tax of N814 million, a decrease of 56 percent (June 2013: N1.84bn).
Rashidat Adebisi, chief financial officer, explained that the dip in profitability for the period in review was expected, saying “the dip in profitability was driven largely by the dip in investment income, which was expected. Last year, we enjoyed two one-off income gains (i.e. unrealised gain on our investment property and profit from the disposal of an unquoted equity) which resulted in income of a little over N1.2 billion. Backing out this, we have a real growth of 11 percent on the investment income line.
“Also putting a drag on profitability was the 53 percent growth in net claims over last year. This growth was driven by lower recoveries from reinsurance as most of the claims were within our retention limits.”
Giving further insight into the company’s future drive, Adebisi said: “Overall, our H1 2014 performance is very much in line with our projections for the period. We look forward to a better H2 as this would deliver better underwriting performance as experience has shown.”