AXA Mansard Insurance Plc has projected a marginal decline in Profit After Tax (PAT) to N2.04 billion for the first quarter of 2021 (Q1, 2021), indicating a 1.08% decline from the figure recorded in Q3 2020.
This is according to the firm’s recent earnings forecast sent to the Nigerian Stock Exchange market, as seen by Nairametrics.
Key highlights of the earnings forecast for Q1 2021
- Pre-tax profit is projected declined to N2.25 billion, +15.4% Q-o-Q.
- Gross premium written is projected to rise to N24.09 billion, +170% Q-o-Q.
- Reinsurance expense is projected to rise to N4.08 billion, +20.9% Q-o-Q.
- Net premium income is projected to rise to N9.9 billion, +22.6% Q-o-Q.
- Net underwriting income is projected to rise to N10.3 billion, + 22.2% Q-o-Q.
- Net claims expense is projected to rise to N6.82 billion, +64.7% Q-o-Q.
- Investment income is projected to rise to N1.26 billion, +7.6% Q-o-Q.
- Employee benefit expense is projected to rise to N907.6 billion, +26.2% Q-o-Q.
What you should know
Recall that AXA Mansard Insurance Plc had earlier announced an increase in its authorized share capital from N5.25 billion to N18 billion, indicating a massive increase of 242.9%.
The gains in the projected income components Q-o-Q such as; Gross Premium profit, Net underwriting income etc. are to be eroded by higher expenses components, such as an astronomic rise in net claims expense, employee benefits amongst others, leading to a fall in the projected profit.