Economy
AXA Mansard Insurance Grows Earnings by 12% After IFRS 17 Implementation

AXA Mansard Insurance plc, a member of the AXA Group, has recorded 12 per cent revenue growth for the second quarter ended June 30, 2023, following the implementation of the IFRS17 and IFRS9 accounting standards.
The accounting standard became effective on January 1, 2023. consequently, gross earned premiums (Insurance revenues) become the principal revenue indicator given the change in accounting standard
The commercial activity of insurance operations will now be reported using insurance (earned) revenues as against gross written premiums (GWP). 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.
Commenting on the results, the Chief Financial Officer, Mrs Ngozi Ola-Israel, said, “In the first half of the year, we grew Gross Written premiums by 22%, delivering insurance revenue growth of 12% from N34.7 billion to N39.0 billion despite our challenging and evolving economic environment, particularly in the second quarter of the year.
“This performance further reinforces our resilience and capacity to produce sustainable results even in a challenging business environment. Our operating performance also improved significantly, with PBT growth of 528 per cent to 14.8 billion from 2.4 billion last year, owing to significant improvement in the P&C and L&S segments, net FX gains from devaluation effect as well as the significant recovery from the health segment.”
Commenting on AXA Mansard’s financials at the end of the first half of 2023, the Chief Executive Officer of AXA Mansard Insurance, Kunle Ahmed, said, “We are proud to retain the trust of customers, brokers, and partners despite the challenging economic environment.
According to him, “The outstanding performance demonstrates our dedication to ensuring sustainable growth in the face of this environment as we achieved improved revenue and operating performance in the first half of the year.
“With our focus on resilience, we will remain an exceptional insurer with great financial strength, excellent underwriting capabilities, and efficient claims management processes.
“However, looking forward to the second half of the year, we are optimistic about the opportunities for our business through improved processes with our technical and digital capabilities while prioritizing our customer-centricity, growth, and profitability.”
The underwriter said that the insurance revenues improved by 12 per cent YoY (39.0 billion vs 34.7 billion). Growth is driven by Health (+27%) and L&S (+23%), partly offset by a P&C decline of 5 per cent due to a change in the timing of booking of key business in the current period vs this time last year.
The life and health business recorded growth resulting from improved customer retention, increased share of existing business, and the acquisition of new businesses.
Gross revenues: grew 22 per cent YoY (N54.8 billion vs N45.0 billion).
Improved performance is due to our ability to acquire new businesses as well as our improving retention rates. Growth is spurred by Health (+26%), L&S (+20%), and P&C (+19%). P&C volumes performance is attributable to improved performance in the commercial lines growing by 19 per cent YoY.
Life volume acceleration is driven by the impacts of the new life savings product. Health volumes improve owing to increased premiums from re-pricing and renewal of key businesses.
P&C improves 19 per cent YoY due to strong performance in the Oil & Energy portfolio, which grows by 21% and is partially offset by declines in Aviation and Marine due to changes in the structure of key businesses.
Growth is also driven by improved performance in personal lines as well as increased premiums on strong renewals and new businesses. The focus remains on maintaining efficiency to ensure the growth and profitability of all our portfolios.
L&S segment grows 20 per cent YoY owing to improved performance in individual life business (+59%) which is partly offset by the 1% dip in group life due to delayed renewals of key businesses. Growth in the individual life portfolio is largely driven by the impact of the increase in customers onboarded and increased volumes from protection with the new life savings products. In addition, improved agent productivity has also contributed to the growth in revenues.
Total revenues improved 14% YoY, with higher management fees benefiting from improved 3rd party assets under management. Own AuMs improved by 25%, with 3rd party client count growing by 18%, leading to a 30% growth in 3rd party AuMs and a 28% growth in total AuMs.
Overall, PBT significantly improved by 528% YoY owing to 346% growth in P&C profits and significant growth in the health business, which is partly offset by a 37% dip in the life business. 346% growth in P&C is attributable to improved revenues and underwriting performance, as well as fair value gains. The dip in the life business is driven by increased claims experienced during the period compared to last year and partly offset by reduced underwriting expenses and higher investment margins. The health business continues with its recovery to deliver a N3.5bn profit owing to higher volumes, improved claims management, and operating efficiency.
Shareholder’s fund stood at N41.4 billion, growing by 40 per cent from N29.7bn in FY22 driven by profits in H1 and by fair value gains.
Return on Shareholder’s Equity (ROE) improved by 33.8 percentage points from 7.7 per cent prior year to 41.5% owing to the improved performance in the business. The operating performance of the group increased by 528% (N14.8bn from N2.4bn LY) while average shareholder’s equity also grew 16% (N35.6 from N30.7bn LY) owing to changes in fair value reserves. As a group, we remain committed to providing value to our shareholders.
Return on Assets (ROA) improved by 9.9 percentage points up to 12.0% from 2.1% when compared with the prior year. The growth indicates efficient asset utilization towards improved PBT growth of 528% (N14.8bn from N2.4bn LY). The average asset has also increased by 10% (N123.0bn from N111.9bn LY) owing to an improved asset base (near cash and insurance contracts assets) as we continue to consolidate on financial strength during the year.
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Economy
Six Securities Raise NASD OTC Exchange by 0.99%

By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.99 per cent on Thursday, February 6, boosted by price appreciation in the six stocks.
The NASD Unlisted Security Index (NSI) went up by 31.02 points during the trading session to 3,171.57 points, in contrast to the midweek’s 3,140.55 points, and the market capitalisation increased by N17.57 billion to close at N1.796 trillion compared with the previous day’s N1.779 trillion.
Okitipupa Plc added N8.44 to its value yesterday to finish at N93.30 per unit versus N84.86 per unit, Central Securities Clearing System (CSCS) Plc gained N1.78 to wrap the day at N23.78 per share compared with N22.00 per share, and Afriland Properties Plc went up by N1.24 to N17.49 per unit from N16.25 per unit.
Further, Mixta Real Estate Plc expanded by 15 Kobo to finish at N3.11 per share versus the preceding session’s N2.96 per share, FrieslandCampina Wamco Nigeria Plc grew by N1.61 to N39.50 per unit from N37.89 per unit, and UBN Property Plc rose by 2 Kobo to close at N2.22 per share, in contrast to midweek’s N2.20 per share.
During the trading day, the volume of securities bought and sold by investors increased by 19.3 per cent to 12.0 million units from 10.1 million units, the value of securities soared by 5.1 per cent to N14.2 million from N13.5 million, and the number of deals surged by 152.9 per cent to 43 deals from 17 deals.
Impresit Bakolori Plc ended the session as the most active stock by value (year-to-date) with 519.5 million units worth N504.3 million, followed by FrieslandCampina Wamco Nigeria Plc with 6.2 million units valued at N245.0 million, and Geo-Fluids Plc with 9.3 million units sold for N44.8 million.
Also, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 519.5 million units worth N504.3 million, trailed by Industrial and General Insurance (IGI) Plc with 42.4 million units sold for N12.9 million, and Geo-Fluids Plc with 9.3 million units valued at N44.8 million.
Economy
Naira Falls to N1,500/$1 at Official Market, Appreciates to N1,570/$1 at Black Market

By Adedapo Adesanya
For the fourth consecutive trading session, the value of the Nigerian currency, the Naira, depreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday by 0.06 per cent or N89 Kobo to trade at N1,500.65/$1 compared with the previous day’s value of N1,499.76/$1.
However, the Naira improved its value against the Pound Sterling in the official market yesterday by N8.19 to sell for N1,859.98/£1 compared with Wednesday’s closing price of N1,868.17/£1, but against the Euro, the local currency depreciated by N1.77 to settle at N1,555.18/€1, in contrast to midweek’s value of nN1,553.41/€1.
At the black market, the local currency gained N20 against the greenback during the session to quote at N1,570/$1 versus the N1,590/$1 it was traded a day earlier.
In the cryptocurrency market, it was majorly red on Thursday due to profit-taking as the US Securities and Exchange Commission took the first step toward allowing new crypto exchange-traded funds (ETFs) tracking the price of assets like Litecoin and Solana, as well as new ways of redeeming funds from existing crypto ETFs.
Meanwhile, companies took another step toward launching Ripple (XRP) ETFs in a further sign of the new crypto-friendlier administration at the agency.
Data indicated that Cardano (ADA) went down by 5.1 per cent to trade at $0.7169, Solana (SOL) slumped by 4.8 per cent to finish at $192.63, and Dogecoin (DOGE) depreciated by 4.5 per cent to sell at $0.2509.
In addition, Ethereum (ETH) went down by 4.3 per cent to close at $2,713.47, Ripple (XRP) weakened by 3.6 per cent to end at $2.36, Litecoin (LTC) retreated by 1.9 per cent to close at $103.95, and Bitcoin (BTC) dipped by 0.5 per cent to sell for $97,344.70.
However, the price of Binance Coin (BNB) went up by 0.4 per cent to trade at $579.91, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
Economy
Buying Pressure Buoys NGX All-Share Index by 0.10%

By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed continued buying interest from offshore and domestic investors on Thursday, strengthening the market further by 0.10 per cent at the close of transactions.
Data revealed that the All-Share Index (ASI) was up by 105.26 points yesterday to 105,430.15 points from the preceding day’s 105,324.89 points, and the market capitalisation expanded by N65 billion to close at N65.287 trillion compared with the previous session’s N65.222 trillion.
Business Post observed that the market participants showed interest in equities across the key sectors of the exchange because of their prospects to yield better value later.
The insurance counter gained 0.63 per cent, the consumer goods index appreciated by 0.18 per cent, the energy index improved by 0.13 per cent, the banking space jumped by 0.09 per cent, and the industrial goods industry grew by 0.04 per cent.
Eterna chalked up 9.88 per cent to trade at N33.35, Cadbury Nigeria also gained 9.88 per cent to finish at N26.70, Fidson increased its value by 9.77 per cent to N19.10, UPDC rose by 9.77 per cent to N2.36, and Deap Capital soared by 9.38 per cent to N1.05.
On the flip side, Tripple G lost 9.72 per cent to end at N2.23, Golden Breweries receded by 8.91 per cent to N7.87, Veritas Kapital slumped by 7.81 per cent to N1.18, Caverton dipped by 5.53 per cent to N2.05, and Regency Alliance slipped by 4.05 per cent to 71 Kobo.
When the bourse closed for the session, there were 33 price advancers and 23 price decliners, indicating a positive market breadth index and strong investor sentiment.
Yesterday, investors bought and sold 537.2 million shares valued at N23.0 billion in 15,450 deals versus the 1.1 billion shares worth N28.8 billion traded in 15,080 deals on Wednesday, representing a rise in the number of deals by 2.45 per cent, and a decline in the trading volume and value by 49.19 per cent and 20.14 per cent, respectively.
Access Holdings led the activity log with 61.6 million stocks valued at N1.7 billion, Sterling Holdings exchanged 50.2 million equities for N296.2 million, Zenith Bank traded 40.5 million shares worth N2.0 billion, FBN Holdings sold 38.8 million equities valued at N1.3 billion, and UPDC transacted 23.6 million stocks worth N54.4 million.
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