Axa Mansard’s gross premium rises 22% to N29.36bn in H1

Axa Mansard Plc, Nigeria’ssecondbiggest insurer by market valuehasannounced it grew gross premium income by 22 percent in the half-year 2019 period.

The insurer’s net premium income surged some 26 percent in the review period, from N9.56 billion last year as gross premium income grew faster than reinsurance expenses.

Breakdown of its premium constituents showed that the insurer realized N14.59 billion from its non-life insurance business, N5.91 billion from life business and N8.9 billion from its health maintenance segment (HMO).

Net underwriting income appreciated to N13.19 billion in the first six months of 2019 compared with N10.51 billion a year before partly supported by fees and commission on insurance contracts which

rose by a quarter.

The company’s net underwriting income jumped some 8 percent in the review period despite a 30 percent surge in underwriting expenses.

The insurer’s total investment income shrank by 13 percent from N3.28 billion reported in the previous period to N2.84 billion half-year 2019.

This was driven by N129 million losses incurred on investment property, fewer gains on financial instruments and dip in profit from contracts and other income.

The decline in investment income coupled with elevated indirect expenses took on a toll on operating profit as it dipped some 13 percent in the review period.

A further look into the company’s results showed it wrote back almost half a million to premium receivables mid-year 2019 compared with N23 million reported as impairment last year.

Premium receivables of the insurerwasvaluedatn7.4billion in the review period and made provision worth N73.4 million for impairment, bringing actual receivables to N7.35 billion. Receivablesfromhmodominated with 62 percent share.

Thus, profit after tax shrank to N1.42 billion in the review period, 8 percent less than N1.54 billion reported last year. In addition, the insurer paid N191.8 million as interest on loans acquired from APD Limited.

In six months to June 2019, Mansard’s total assets appreciated to N84.08 billion, representing some 14 percent uptick over N73.77 billion posted last December. Also within this period, the insurer grew owners’ fund by 7.5 percent to N22.93 billion.

Axa Mansard Insurance Plc offers insurance and asset management services, covering motor, home, life travel, education, commercial insurance services as well as portfolio and risk management.