AXA Mansard Insurance Plc, a key subsidiary of the Paris-based AXA Group, reported a blockbuster 117.44% jump in net profit for the 2025 fiscal year, as the lender successfully leveraged Nigeria’s currency devaluation to boost its dollar-denominated assets.
Profit after tax climbed to ₦26.18 billion, more than doubling its 2024 performance, even as the insurer expanded its market share across its core business lines.
The results underscore the insurer’s ability to act as a hedge against macro-volatility, with nearly all of its bottom-line growth underpinned by a massive surge in exchange rate gains.
The Devaluation Windfall: FX Gains Hit ₦27 Billion
The primary engine behind AXA Mansard’s triple-digit profit growth was the strategic positioning of its balance sheet:
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Dollar Asset Boost: Foreign exchange revaluation gains spiked 89.57% to ₦27.09 billion. As the Naira adjusted through 2025, the insurer’s dollar-denominated holdings provided a built-in cushion that directly fueled the profit surge.
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Margin Resilience: Management noted that the company is prioritizing “margin resilience,” using these investment windfalls to offset the rising cost of claims in an inflationary environment.
Diversified Revenue: ₦131 Billion Top-Line Growth
Beyond the FX volatility, the insurer’s core operations showed strong organic momentum:
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Revenue Spike: Total revenue rose 58.70% to ₦131.33 billion, up from ₦82.75 billion the previous year.
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Segment Strength: The performance was balanced across Property & Casualty, Life & Savings, and Health, signaling that the company is successfully deepening insurance penetration in the Nigerian market.
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Customer Retention: High renewal ratios and the consistent onboarding of new corporate and retail clients were cited as the main drivers of the revenue expansion.
Strategic Outlook: Tech-Driven Efficiency
AXA Mansard is pivoting toward a leaner operating model to protect its gains:
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Technology Investment: The group is deploying new digital tools aimed at reducing administrative costs and underpinning profit margins.
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Claims Optimization: Management intends to utilize these technological investments to improve claims management and identify new opportunities within the broader investment space.
Last year, global rating agency AM Best reaffirmed the company’s Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” (Good).
The rating reflects AXA Mansard’s robust balance sheet, sound risk management framework, and the strategic support it continues to enjoy from its parent company, AXA S.A.
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