AXA Mansard Insurance A two-fifths cut in profits for the 2022 financial year as gross premiums increased, an unaudited earnings report showed on Tuesday.
Underwriter earnings took a hit from sharp increases in gross claims expenses and re-insurance spending.
Bucking financial performance, shares in the company gained 6.3 percent per unit in Lagos, the biggest daily gain in more than five weeks, after the release of financial statements.
The insurer wrote N69 billion in gross premium compared to N60.2 billion reported in the previous year, while gross premium income at N69.4 billion increased by about a quarter when set next to the figure recorded a year earlier.
It owes an increase in gross premium income to a reasonable improvement in income from AXA Mansard Health (HMO).
Fees and commissions in insurance contracts grew by 28.8 percent to N2.4 billion while claims expenses recovered from reinsurers were at N4.8 billion compared to N4.6 billion the previous year.
Earnings hurt, changes in annuity reserves fell to N147.6 million, a plunge of 83.6 percent. In the same vein, other income shrank from N948.5 million to N229.8 million, not least because miscellaneous income was depressed.
At N6.3 billion, the underwriter’s investment income was 23.5 percent larger, led by dividend income which was enlarged almost three times.
Losses on financial instruments increased more than fourteen times to N731.8 million, while the cost of employee benefits increased to N4.5 billion from N3.7 billion.
READ ALSO: Nigeria breaks apart as debt payments exceed revenue
Profit before tax came to N3.6 billion after declining by 37.3 percent year-on-year. Post-tax profit decreased to N2.2 billion from N3.7 billion, leaving a net profit margin of just 3.2 percent.
The insurer expects to write gross premiums of N32.9 billion this quarter compared to N28.6 billion reported in the same period last year while it expects net profit to grow by 74.3 percent to N673.1 million.
Support journalism integrity and credibility PREMIUM TIMES
Good journalism costs a lot of money. But only good journalism can guarantee the possibility of a good society, responsible democracy, and transparent government.
For continued free access to the best investigative journalism in the country, we ask that you consider making a modest contribution to this noble effort.
By contributing to PREMIUM TIMES, you help keep journalism relevant and ensure it remains free and available to all.
contribute
AD TEXT: Call Willie – +2348098788999
