AXA Mansard recently released its financial statements for the year ended December 2017. While gross premium written increased from ₦20.7 billion in 2016 to ₦27 billion in 2017, bottom line growth was largely flat.
Profit before tax increased slightly from ₦3.1 billion in 2016 to ₦3.2 billion in 2017. Profit after tax also inched up from ₦2.63 billion in 2016 to ₦2.67 billion in 2017.
Earnings per share fell slightly from ₦0.20 in 2016 to ₦0.196 in 2017. The company has declared a final dividend of ₦0.06 per share.
Claims expenses spiked
The flat profits were due to a massive increase in claims expenses. Total claims expenses jumped sharply from N9.3 billion in 2016 to N15.8 billion in 2017. Net claims expense (total claims after deducting expenses recovered from reinsurers) thus rose massively from ₦6.8 billion in 2016 to ₦9.5 billion in 2017.
Investment income acts as a cushion
The sharp jump in claims was cushioned by an equally large increase in investment income,which rose massively from ₦3.8 billion in 2016 to ₦5.1 billion in 2017. The chunk of this was provided by interest income (on both investment securities and cash) as well as rental income.
The Company was incorporated on 23 June, 1989 as a private limited liability company called “Heritage Assurance Limited” and issued with a composite insurance license by the National Insurance Commission in March 2004. Its name was changed to Guaranty Trust Assurance Limited in September 2004 following the acquisition of a majority shareholding by Guaranty Trust Bank Plc and changed again to Guaranty Trust Assurance Plc in March 2006 following the increase in the number of members beyond the maximum required for a private company.
In November 2009, the Company became listed on the Nigerian Stock Exchange. GT Bank divested itself of the company in 2012, following CBN guidelines for banks to either divest non-banking subsidiaries or form a holding company. Mansard was then bought by Assur Africa Holdings.
The beneficial ownership of the Company was changed to Societe Beaujon S.A.S (AXA S.A) in December 2014 by the acquisition of 100% of Assur Africa Holding (AAH). The Company modified its name and corporate identity to AXA Mansard Insurance Plc in July 2015.