… as FY2014 gross premium rises 28%
Efficient underwriting capacity has spurred Mansard Insurance plc to growth as gross premium surges 28 percent, analysis of the 2014 audited financial statement shows.For the year ended December 2014, the Nigeria insurer’s gross premium surged by 28 percent to N17.40 billion, from N13.60 billion, the same period of the corresponding year (FY) 2013.
The growth at the topline means the company was able to manage effectively its underwriting capacity.
Further analysis of Mansard’s audited financial statement showed net premium earned spiked by 20 percent to N9.05 billion in 2014, from N7.53 billion in 2013. Underwriting profit spurted by 79 percent to N3.38 billion in 2014, compared with N1.89 billion in 2013.
Mansard also aimed at consolidating its position as one of Nigeria’s leading non-financial services groups when it announced the completion of its acquisition of 60 percent of Penman Limited, having already made inroads into asset management, health insurance and property segments through its wholly-owned subsidiaries (Mansard Investment and Mansard Health).
The company achieved growth in a rather difficult environment as lack of awareness among the citizenry about insurance package and the huge cost of operations caused by epileptic power supply, which leaves the firm running generating plant with more expensive diesel oil.
Due to aggressive expansion activities and tough operating environment that culminated in increased costs, Mansard’s bottomline took a slight hit as net income reduced by 22 percent to N1.61 billion in 2014 from N2.08 billion the same period the preceding year.
Operating expenses were up by 35 percent to N4.54 billion in 2014 as against N3.37 billion in 2013.
Net claims incurred moved by 17 percent to N4.11 billion in 2014 from N3.50 billion in 2013.
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 23.60 percent to N44.89 billion in the review period from N36.13 billion in 2013. Total shareholders’ fund increased by 9 percent to N16.32 billion in in 2014 from N14.93 billion in 2013.
Return on equity (ROE) reduced to 9.86 percent in 2014, from 13.93 percent in 2013, while return on assets dipped to 3.56 percent in 2014 as against 5.72 percent in 2013. Mansard’s share price closed at N3.05 on the floor of the NSE, while market capitalisation was N32.05 billion.
