AXA Mansard Insurance Plc has reported a pre-tax profit of N34.4 billion for the nine-month period ending September 30, 2024, according to its latest financial report.
This reflects a 128.37% increase from the N15 billion recorded in the same period last year, indicating a notable year-over-year improvement in profitability.
The company’s insurance revenue reached N98.2 billion, representing a 60.27% rise from the previous year.
Additionally, AXA Mansard’s earnings per share rose by 140.44% year-over-year, moving from N1.36 in 2023 to N3.27 for the reporting period, indicating an increase in shareholder returns.
Key Highlights
- Insurance revenue: N98.2 billion, +60.27% YoY
- Insurance service expenses: N59 billion, +52.43% YoY
- Insurance service results: N12.4 billion, +37.65% YoY
- Net financial income from reinsurance contracts: N21.3 million, +91.52%
- Other Income: N3.2 billion, +153.06% YoY
- Finance cost: N889.7 million, +221.34% YoY
- Pre-tax profit: N34.4 billion, +128.37% YoY
- Post-tax profit: N30.1 billion, +140.20% YoY
- Earnings per share: N3.27, +140.44% YoY
Commentary: Key Income Drivers
A cursory review of AXA Mansard’s financial results indicates that core insurance revenues, particularly from non-life and health insurance segments, were key drivers of performance in the first nine months of the year.
- AXA Mansard’s insurance revenue recorded a year-over-year increase of 60.27%, rising from N61.2 billion in the previous year to N98.2 billion for the period ending September 30, 2024. This growth was primarily supported by contributions from non-life and health insurance segments, each contributing N24 billion.
- Insurance service expenses also rose by 52.25% year-over-year, totalling N59 billion, with non-life insurance costs accounting for N16.5 billion and life insurance costs contributing N13.6 billion.
- Insurance service results for the period grew by 37.65% YoY, reaching N12.4 billion.
- Income from other sources saw a notable increase of 153.06%, reaching N3.2 billion. Asset management fees were the largest contributor at N1.7 billion, followed closely by rental income, which added N1.3 billion.
- Interest expenses formed a significant part of the company’s finance costs for the period, totalling N889.7 million.
- Profit attributable to equity shareholders rose by 140.00%, from N12.2 billion in 2023 to N29.4 billion as of September 30, 2024, resulting in an earnings per share of N3.27 based on a weighted average of 9,000,000 shares.
Assets and liabilities position
As of September 30, 2024, AXA Mansard’s total assets grew to N210.72 billion, driven by increases in investment securities, reinsurance contract assets, and investment property holdings.
- Government and corporate bond investments rose significantly from N38 billion last year to N92 billion in this period, making up most of the company’s investment securities, alongside Treasury bills at N10 billion.
- Reinsurance contract assets stood at N28.1 billion for non-life insurance and N30.3 billion for health insurance.
- Office property, valued at N30 billion, formed the largest component of the company’s investment properties.
Liabilities also increased sharply to N144.19 billion from N99.7 billion, largely due to higher insurance contract liabilities and borrowings.
- Reinsurance liabilities from non-life insurance made up the largest part of contract liabilities, standing at N42.4 billion, with health-related liabilities at N28 billion.
- Bank borrowings rose to N9.3 billion, compared to N5.1 billion in the same period last year, while loan notes were reported at N143.8 million.
AXA Mansard’s stock ended trading at N5.80 per share on November 5, 2024. Year-to-date, the company has appreciated by 5.45% in the stock market.
