Listed insurer Axa Mansard Insurance has announced a double-digit profit growth for the 2019 business year helped by nearly 30 percent surge in revenue and the company’s cost efficiency in the year.
Axa Mansard Insurance said profit grew by 17 percent to N2.91 billion while its Group’s shareholders’ funds hit N25.26 billion, a 21 percent growth in the year on a boost in the insurer’s shareholders’ funds.
“Our focus on identifying new growth areas in our markets, strengthening our partnerships and refining our distribution strategy continues to pay off as we grew revenues by 29% despite the challenging operating environment,” said Kunle Ahmed, Axa Mansard Insurance CEO.
Gross Premium Written grew to N43.62 billion from N33.92 billion in the prior year while Net Premium Income rose by 33 percent to 26.29 billion. The insurer saw Investment and other Income remain flat for the year and net claims reach N17.46 billion.
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Ahmed noted that the 44 percent jump in net claims was testament of Axa Mansard Insurance’s capability to pay all valid claims promptly even it transits from just a payer to the partner of its numerous customers, he said.
Axa Mansard reported a Loss/Claims ratio of 45 percent, down from 53 percent in 2018.
Both underwriting expenses and underwriting profit rose by 4 percent to N3.49bn and N6.15bn respectively and the company’s focus on cost optimization and efficiency ensured a 4 percent drop in operating expenses at N8.05bn in 2019.
Underwriting expense ratio dropped to 8 in 2019 percent from 12 percent in 2018, and Operating expense ratio fell to 14 percent from 18 percent year-on-year.
The performance supported a 16 percent rise in profit before tax to N3.93bn for the year.
Earnings per share jumped to 26.24 kobo from 21.35 kobo in the prior year.
Axa Mansard Insurance’s balance sheet remained strong, with assets growing by 25 percent to N92.28bn year-on-year compared to a 12 percent increase in total liabilities which printed at N25.16bn for the year.
As a result, shareholders’ fund for the insurer surged 38 percent to N23.08bn pushing Group’s shareholders’ fund 21 percent higher to N25.26bn.
Returns on Average Equity rose to 17 percent from 12 percent in the reporting period and Returns on Average Asset rose to 5 percent from 4 percent.
“Axa Mansard remains an outstanding insurer with strong financial strength and strong Underwriting capabilities,” said Ahmed.
