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AXA Mansard is Nigeria’s Largest Listed Insurer by Profit

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AXA Mansard Insurance has added another superlative to its feathers as it becomes the largest listed insurer by profit even amid a low yield environment and the coronavirus crisis.

The largest listed insurer by market capitalization saw net income surge by 168.74 percent to N5.67 billion as at September 2020, from N2.11 billion as at September 2019.

The growth at the bottom line eclipsed peer rivals AIICO Insurance’s uptick of 16.58 percent to N5.22 billion in the period under review; Lasaco, (+32.15 percent); Unity Kapital Insurance, (+29.02 percent); Prestige Assurance, (+67.05 percent); Linkage Assurance, (+90.13 percent), and Universal Insurance, (+369.15 percent).

Insurers that fell of the cliff and recorded reduction in net income or losses for the period include: -Guinea Insurance (-81.23 percent); Regency Insurance, (-7.96 percent), Consolidated Hall Mark insurance, (-12.13 percent), Cornerstone Insurance, (67.13 percent); NEM Insurance, (-45.03 percent); Mutual Benefit Assurance, (-5.97 percent), and Coronation Insurance, (-11.12 percent).

Africa Alliance Insurance recorded a loss of N3.22 billion in the period under review, no thanks to spiraling combined ratio and declining premium income as the insurer risks being technically insolvent if its profit continues to eat deep into reserves.

Despite deteriorating underwriting environment as evidenced by the high claims environment, AXA Mansard recorded a 63.19 percent uptick in underwriting profit, the largest expansion in underwriting performance, according to data compiled by MoneyCentral.

Further analysis of AXA Mansard’s financial statement shows its net premium income spiked by 24.13 percent to N23.75 billion as at September 2020.

A breakdown of the top line figure shows Non-Life segment, the major driver of growth, surged by 78.43 percent to N17.02 billion while Life Business was up 17.15 percent to N18.32 billion in the period under review.

There is growing optimism among analysts that AXA Mansard will surmount the macroeconomic headwinds brought on by the coronavirus pandemic and the low yield environment caused by the accommodative policy of the central bank that is responsible for the precipitous drop in treasury yields.

The investment income, which serves as a source of auxiliary income for insurers, is expected to be pressured due to low yields, while an economic downturn means a lot of Nigerians won’t be taking up insurance cover as their pockets are squeezed.

AXA Mansard’s stock has rallied this year, as investors pick the insurer to lead an economic rebound, but lack of transformation reforms on the part of the present administration remains a stumbling block to economic recovery.

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