AXA Mansard, Nigeria’s largest stock market listed insurer by market value has recorded tremendous growth in net income and earned premium income amid macroeconomic conditions and inherent challenges.
For nine months through September 2015, AXA Mansard’s net income increased by 32 percent to N1.51 billion, from N1.14 billion the preceding year.
Earnings per share EPS moved by 14 percent to 11.51k in September 2015 compared with 10.12k in September 2014. Investment and other income grew by 55 percent to N3.33 billion.
This quarter’s result reflects the higher net gains on investments that helped bolster underwriting profits.
AXA Mansard continued to have excellent underwriting performance in the third quarter of 2015, with consolidated combined ratios of 56.03 percent.
The combined ratio measures whether the insurance company is earning more revenues from its collected premiums relative to the claims it pays out.
A combined ratio below 100 percent shows financial strength and vice versa.
AXA Mansard has utilized the resources of owners in generating higher profit as return on equity (ROE) moved to 7.92 percent in 2015 from 6.98 percent last year.
The Company’s underwriting capacity was efficient as net premium earned increased by 12 percent to N7.31 billion in 2015 compared with N6.54 billion last year. However gross premium written reduced by 8 percent to N13.50 billion.
AXA Mansard is aggressive about payment of claims to policy holders as loss ratio, otherwise known as claims ratio increased to 57.18 percent in the period under review as against 43.27 percent last year.
This means out of every N100 the company collects in premium, it pays N57 as claims.
Total claims incurred increased by 48 percent to N4.18 billion in the review period as against N2.83 billion last year.
Analysts say AXA Mansard’s 57 percent loss ratio means the insurer is not collecting premiums higher than the amount paid in claims. In other words the company is not experiencing financial trouble as real underwriting results stood at N3.13 billion.
France based AXA, one of the international leading insurance and assets management groups acquired Assurance Africa Holding that holds 77 percent in the Mansard Plc.
The group company had said Mansard Plc (the acquired company) will benefit from limitless access to global resources, capacity development, stronger brand recognition, especially in the corporate space.
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