AXA Mansard profit surges 105% to N1.82bn despite coronavirus

AXA Mansard Insurance plc, a member of the AXA Group, grew profit after tax by a 105% in the first quarter of 2020 where the outbreak of the novel coronavirus disrupted businesses across the country. The insurer posted a profit after tax of N1.82 billion, up from N0.89 billion in March 2019, thanks to its focus on partnering customers as well as sustained operational efficiencies. “Despite the challenges arising from the outbreak of COVID 19 towards the end of the quarter, we were able to grow our premium incomes and recorded strong profitability growth,” said Kunle Ahmed, the insurer’s CEO. “We will continue to improve and make available our digital channels during this difficult time and focus on providing bespoke solutions to our customers,” he said. The profitability recorded during the first quarter cut across P&C, Life and Health portfolios with 21% growth in gross revenues across the board. While AXA Mansard’s Health business remains the company’s fastest-growing and the commercial lines continue to hold its share of the market, AXA Mansard’s retail business continues to justify the investment in the insurer’s retail structure with 46% growth over the same period last year, Ahmed said. AXA Mansard Insurance’s gross written premium hits N21.08 billion, 21% more than N17.42 billion in March 2019, while Net Premium Income rose 39% to N8.25 billion, up from N5.95 billion in the previous year. Investment and Other Income ballooned 79% to N2.36 billion in the quarter and Operating Expenses of N2.09 billion meant a 19% increase from N1.76 billion in March 2019. AXA Mansard was more operationally efficient as Operating Expense Ratio dropped to 12% in the quarter from 15% in the same period of 2019. Underwriting Expense Ratio fell to 5% from 8% over the reporting period. The insurer, however, saw Loss/claims Ratio hit 50% from 1% in the previous year while re-insurance Cost Ratio of fell to 28% from 75%. Profit before Tax surged to N2.01 billion, up 96% from N1.02 billion recorded in March 2019 and Earnings per Share jumped to 13.9k from 8.61k from last year. AXA Mansard Insurance’s grew its total assets to N104.32 billion, up 13% from N92.28 billion as at December 2019, while Insurance Liabilities were up 40% from N25.16 billion to N35.32 billion. As a result, Insurance Shareholders’ Funds stood at N24.04 billion, up 4% from N23.09 billion as at December 2019, and Group Shareholders’ Funds rose 6% to N26.85 billion from N25.26 billion. Returns on Average Equity rose to 8% from 5% in the reporting period and Returns on Average Asset rose to 2% from 1%. In response to the novel coronavirus outbreak, AXA Mansard launched a telemedicine service to enable its health customers virtually visit the hospital and see a doctor from the comfort of their homes through their phones, laptops or tablets.