AXA Mansard Q1 Gross Premium up 88% as Operating Result Improves

AXA Mansard Plc gross written premiums (GWP) increased 87.96 percent in the first three months of 2024 from the previous year to N64.64 billion, driven by strong performances in both the Non-Life and HMO segment.

Broken down, GWP in the Non-Life segment in the first quarter (Q1) of 2024 was N35.19 billion, up 136.81 percent from the opening quarter of 2023. Within this segment, AXA Mansard noted that there was a particularly strong performance in its Health (HMO) which spiked by 61.75 percent to N20.64 billion.

Meanwhile, insurance revenue grew by 63.87 percent to N31.84 billion in Q1 of 2024, reportedly driven by positive performance of both business lines.

The company paid total claims of N12.49 billion to policy holders, which represents a 23.41 percent increase from 2023’s N10.12 billion.

Claims costs for insurers have been soaring on the back of rising inflation that balloon the replacement cost of assets. The inflationary environment forces insurers to increase the price of their products.

In April, 2024, the headline inflation rate rose to 33.69 percent, from 33.20 percent in March 2024, marking an increase of 0.49 percent points according to the National Bureau of Statistics (NBS).

The insurer was not left out of the exceptional gains windfall that helped propel profit by 714.55 percent to N12.87 billion in the period under review from N1.58 billion the previous year.

Big financial intuitions are the great beneficiary of an abrupt currency devaluation of the Naira which impacts positively on the dollar denominated assets in their balance-sheet.

A strong earnings growth is what AXA Mansard needs to pay a higher dividend to shareholders.

Analysts who spoke to MoneyCentral said the insurer’s financial conditions strengthened by a strong balance sheet, adequate operating environment, and appropriate enterprise risk management validates positive ratings by agencies.

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