Nigerian insurance provider, AXA Mansard Insurance Plc has delivered a N3.7 billion profit for the year 2021, a 17% decline from N4.5 billion seen in 2020.
According to the audited financial statement by the firm, the excessive claim payout and increase in administrative expenses by the insurer influenced a fall in profit for the period in spite of the impressive income level.
The performance rides on the back recovery in the year 2021 across many sectors that were hit by the Covid – particularly the insurance sector – as the pandemic saw many policyholders forfeit their duties of premium payment.
From the company’s financial statement, the year 2021 proved to be a recovery year for AXA Mansard as the insurer in 2021 recorded a total of N60 billion in gross written premium for the period, a 26% higher than the N47 billion in 2020 while the total gross premium income stood at N56 billion, a 22% increase from the N46 billion during the COVID year.
Key highlight of the report
- Net premium income recorded N37 billion in 2021 from N32 billion in 2020. The gap was driven by a respective increase in reinsurance expenses to N18.6 billion in 2021 from N13.8 billion
- Fees and commission income was N1.9 billion in 2021 from N1.7 billion.
- The net underwriting income amounted to N39 billion in 2021 from N33 billion in 2020
- The claims expenses soared during the year on the back increasing claims from previous year’s crises, leading to a 37% rise in payout to N28 billion in 2021 from N21 billion in 2020.
- Underwriting expenses also surged to N4.8 billion in 2021 from N3.8 billion.
- The Insurer also spent more on the expenses for marketing and administration in 2021 at N1.5 billion compared to N1.2 billion the previous year.
- Profit before tax for the period was N5.7 billion last year against the N6 billion in the previous year.
AXA Mansard currently trades at N2.37 and its markets cap stand at N21.3 billion as of close of business on Thursday march 31st 2022
