AXA Mansard Insurance Plc, a member of the AXA Group and a global insurance and asset management firm has said its gross revenue rose by 15 per cent to ₦69 billion for the year ended December 31, 2022.
It said in a statement that Property and Casualty were down three per cent to ₦27 billion, Life and Savings rose by 49 per cent to ₦13.8 billion while Health rose by 22 per cent to ₦27.7 billion in December 2022.
Commenting on the results, Ngozi Ola-Israel (Mrs.), the Chief Financial Officer, AXA Mansard Insurance Plc, said “Despite the macroeconomic challenges the business faced in the 2022 financial year, the insurer was able to deliver strong double-digit revenue growth of 15 per cent YoY from ₦60.2 billion to ₦69.0 billion and net premium income growth of 24 per cent YoY from ₦37.1billion to ₦46.1billion.
According to her, AXA Mansard has remained focused on its growth plan across business lines by delivering 49 per cent and 22 per cent growth on its Life and Health businesses respectively while the P&C 3 per cent decline was driven by a deliberate selection of risks to drive profitability.
The decline of 42 per cent and 35 per cent respectively in the PBT and PAT is driven by the higher claims experience in the health portfolio as well as fair value losses on our investment property.
“We made significant recoveries in the second quarter of 2022 with the health business moving from break-even to closing with profits of 0.3bn at the end of the year.
We have taken all necessary steps to strengthen our balance sheet and have set the right platform for continued profitability in 2023.”
– Ngozi Ola-Israel
Breakdown
Gross revenues: grew 15% YoY (69bn vs 60.2bn). Growth was driven by L&S (+49%) and Health (+22%) although P&C declines 3% owing to one-off impacts regarding a non-renewable transaction and a change in the timing of booking of another transaction in the CL P&C portfolio. Life volume acceleration is spurred by the fast onboarding of the new life savings product.
Health volumes improve due to increased premiums and renewals for key commercial line clients.
P&C declines 3% YoY owing to the non-recurrence of premiums from commercial lines which declined 6% YoY (24.7bn vs 26.3bn).
The decline, Ola-Israel said, is driven by shortfalls in the Engineering and marine portfolios while oil & energy remained flat. The engineering dip is driven by one-off unrenewable transactions in the prior year.
Commitment
She reiterated the Group’s commitment to ensuring improved performance through an improved distribution network, process automation, and client retention.
“L&S business grows 49% YoY driven by improved performance in the group life (+20%) and individual life businesses (+107%).
The life and savings business have experienced strong customer retention and sales drive from the launch of the new life savings product. Overall, improved agent productivity and digital footprint also contributed to the growth in revenues.
Total revenues improved 18% YoY, with higher management fees benefiting from improved 3rd party assets under management. AuMs for corporate clients grew 51% as client count grew by 21% leading to a 16% growth in 3rd party AuMs and a 6% growth in total AuMs
Overall, PBT declined by 42% YoY driven by the high claims experience in the health business. The Health business commenced recovery in H2 2022 and was able to deliver profits above N300mnat the end of the year.
“We have remained market leaders in the health segment with a strong focus on providing excellent customer experience while partnering with health providers. Growth in P&C (+23%) vs. LY is attributable to improved net premium income, investment income, and reduced claims. L&S grew 448% YoY due to improved revenue performance, investment income, and a strong drive for operational efficiency”, the AXA Mansard CEO explained.
