By Henry Uche
AXA Mansard Insurance Plc, said its insurance revenues rose by 13 per cent to N19.4billion for the first quarter that ended March 31, 2023, following the implementation of the IFRS-17 and IFRS9 accounting standards, which became effective on January 1, 2023.
It said in a statement that gross earned premiums (Insurance revenues) become the principal revenue indicator given the change in accounting standards, Life & Savings up 23 per-cent to N4.7billion while Health rose 23 per cent to N7.5billion.
According to the underwriter, Property, and Casualty was down two per cent to N7.3bn Gross Written Premiums up 20 per cent to N34.4billion, also Life and Savings up 20per cent to N6.88billion with Health up 22 per cent to N12.9billion and Property & Casualty up 19 per cent to N14.9billion.
The firm said that commercial activity of insurance operations will now be reported using insurance (earned) revenues as against Gross Written Premiums (“GWP”).
The reinsurance expenses will now also be reflected as “net expenses from reinsurance contracts held” with the main difference from what was previously reported being the netting of commissions received and claims recoveries from assumed reinsurance businesses. For asset management, commercial activity continues to be measured on revenues.
Commenting on the results, the Chief Financial Officer, Mrs. Ngozi Ola-Israel, said the double-digit revenue growth of 13 per cent from N17.3billion to N19.4billion and net premium income growth of 21 per cent from N11.6billion to N14.0billion largely driven by the life and health business insurance revenues which increased by 23 per cent on a year-on-year basis.
“This achievement affirms our ambitions to achieve sustainable revenue growth and demonstrates our ability to execute our strategy in a challenging and evolving business environment. Our operating performance improved significantly, with PBT growth of 248 per cent to N1.9billion from N0.5billion last year, driven by improved performance within the P&C and L&S segments and a significant recovery from the health segment.
Also speaking, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said “We started the 2023 financial year on a strong footing. We achieved improved revenue and profit before-tax growth ahead of our projections. With focus on sustainable growth and resilience, we shall explore new ways to strengthen our balance sheet whilst ensuring efficiency in our underwriting and claims processes.
“We are optimistic in 2023, as we leverage our technological and digital capabilities and the dedication of our employees and support of stakeholders to continually deliver value to our customers” he affirmed.