Aduragbemi Omiyale
By Aduragbemi Omiyale
In the first quarter of 2023, which ended on March 31, AXA Mansard Insurance Plc improved its earnings by 13 per cent to N19.4 billion.
In a statement, the insurer said gross earned premiums (insurance revenues) become the principal revenue indicator given the change in accounting standards, as it implemented the IFRS17 and IFRS9, which became effective on January 1, 2023.
It noted that commercial activity of insurance operations will now be reported using insurance (earned) revenues as against gross written premiums (GWP).
Also, the reinsurance expenses will now also be reflected as “net expenses from reinsurance contracts held” with the main difference from what was previously reported being the netting of commissions received and claims recoveries from assumed reinsurance businesses. For asset management, commercial activity continues to be measured on revenues.
A look at the financial performance of the insurance company indicated that Life & Savings grew by 23 per cent to N4.7 billion as Health rose by 23 per cent to N7.5 billion, though Property and Casualty was down by 2 per cent to N7.3 billion.
The Chief Financial Officer of the firm, Mrs Ngozi Ola-Israel, while commenting on the results, said the double-digit revenue growth and net premium income growth of 21 per cent from N11.6 billion to N14.0 billion were largely driven by the life and health business insurance revenues, which increased by 23 per cent on a year-on-year basis.
“This achievement affirms our ambitions to achieve sustainable revenue growth and demonstrates our ability to execute our strategy in a challenging and evolving business environment.
“Our operating performance improved significantly, with PBT growth of 248 per cent to N1.9 billion from N0.5 billion last year which was driven by improved performance within the P&C and L&S segments as well as a significant recovery from the health segment,” she said.
On his part, the chief executive of AXA Mansard Insurance, Mr Kunle Ahmed, said, “We started the 2023 financial year on a strong footing. We achieved improved revenue and profit before-tax growth well ahead of our projections.
“With our focus on sustainable growth and resilience, we continue to explore new ways to strengthen our balance sheet whilst ensuring efficiency in our underwriting and claims processes.
“Looking forward to the rest of the year, we are optimistic about the opportunities that exist for our business as we leverage our technological and digital capabilities as well as the dedication of our employees and support of other stakeholders to deliver value to our customers continually.”
