• Monday, June 24, 2024
businessday logo

BusinessDay

Mansard tap into Nigeria robust economy as premium grows by 18.12 percent

Mansard tap into Nigeria robust economy as premium grows by 18.12 percent

Mansard Insurance Plc is tapping into Nigeria’s robust economy as third quarter premium increased by 18.12 percent according to analysis of recent financial statement.

For the first nine months through September 2014, Mansard’s gross premium income increased by 18.12 percent to N10.82 billion from N9.16 billion the same period of the corresponding year (Q3) 2013.

Underwriting capacity was efficient as net premium income increased by 22.07 percent to N6.54 billion compared to N5.34 billion as at Q3 2014.

The Nigerian regulator (NAICOM) oversaw the vast potential for growth in the Insurance Industry as it recently formulated policies like the ‘No Premium No cover’ policy.

This is with a view of placing operators in the industry on a growth trajectory.

The aforementioned policy stipulates that Premiums must be paid for before an insurer can incept cover. This regulation was enforced by the regulator (NAICOM) with effect from January 1, 2013.

It is also expected that the new auto mobile policy will be a major driver of growth in the Insurance sector.

Despite the upside potentials for the sector, it contribution to the country’s GDP is abysmal, which calls for a better product package that will accelerate premiums of operators.

Read also: Mansard taps into Nigeria’s robust economy as premium income up 18.12%

This strategic organic growth strategy is expedient as the share of insurance in the country’s GDP of 0.56 percent lags behind South Africa with a contribution of 12.9 percent, Kenya 3.2 percent, and Ghana 1 percent.

However, due to aggressive expansion activities that culminated in increased costs, Mansard’s bottom line took a slight hit as net income reduced by 38.37 percent to N1.14 billion from N1.85 billion the same period the preceding year.

Operating expenses were up by 14.50 percent to N2.92 billion in Q3 2014 as against N2.55 billion while underwriting expenses spiked by 20.10 percent to N4.54 billion.

Mansard outstripped other Insurers to win the Insurance and Pension Service Risk award for its ability to incorporate the social factor risk as part of its package,  which the awardees say distinguished the company from other players in the industry.

Total assets were up by 24.56 percent to N45.15 billion in the review period from N36.13 billion the preceding year.

Total share holders fund increased by 5.49 percent to N15.75 billion in Q3 2014 from N14.93 billion last year.

Mansard’s share price closed at N2.85 on the floor of the NSE while market capitalization was N28.50 billion.