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AXA Mansard Insurance Plc, a Nigerian insurance firm would have had an otherwise Steller second quarter (Q2), if not for losses recorded in its holdings of financial instruments.
AXA Mansard’s Gross Premium Written (GPW), in the six months’ period to June 2021, rose by 21.7 percent to N37.18 billion, leading to a net underwriting income of N18.5 billion, up 11.58 percent.
Net underwriting expenses for the period remained relatively flat at N11.939 billion in June 2021, compared to N11.989 billion in June 2020, helping to boost total underwriting profits to N6.56 billion, up some 43 percent, compared to N4.595 billion in June 2020.
However, investment income for the period slumped by 70 percent to N1.24 billion from N4.09 billion a year earlier, due to losses on financial instruments.
The major driver for the decrease was the fair value loss (mark to market loss) on the bonds backing annuity and individual life portfolios, as yields increased in the course of the half year 2021 resulting in a reduction in the value of the underlying assets.
This led to a 36.5 percent decline in after tax profits to N2.28 billion in H1, 2021 from N3.605 billion a year earlier.
AXA Mansard Insurance Plc and its subsidiaries underwrite life and non-life insurance contracts.
The Group also issues a diversified portfolio of investment contracts to provide its customers with asset management solutions for their savings and retirement needs as well as provide pension administration and management services to its customers.
All these products are offered to both domestic and foreign markets. The Group does business in Nigeria and employs about 294 people.