•Reiterates commitment to improved services
By Henry Uche
AXA Mansard Insurance Plc, a member of the AXA Group and global insurance, asset management firm said its gross revenue rose by 15 per cent to N69billion in the year ended December 31, 2022.
A statement by the insurer affirmed that Property and Casualty incomes were down 3 per cent to N27billion, Life and Savings rose by 49 per cent to N13.8billion while Health rose by 22 per cent to N27.7billion in December 2022.
Commenting on the results, the Chief Financial Officer, AXA Mansard Insurance Plc, Mrs. Ngozi Ola-Israel, 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 N60.2billion to N69.0billion and net premium income growth of 24 per cent YoY from N37.1billion to N46.1billion.
According to her, the firm 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 were driven by the higher claims experience in the health portfolio as well as fair value losses on 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.”
The financial officer said its gross revenues grew 15 percent YoY (69bn vs 60.2bn). Growth was driven by L&S (+49%) and Health (+22%), although P&C declines 3per cent 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 was spurred by the fast onboarding of the new life savings product.
Its health volumes improve due to increased premiums and renewals for key commercial line clients. P&C declines 3 per cent YoY owing to the non-recurrence of premiums from commercial lines which declined 6% YoY (24.7bn vs 26.3bn).
The decline Ola-Israel maintained was driven by shortfalls in the engineering and marine portfolios while oil & energy remained flat. The engineering dip was driven by one-off unrenewable transactions in the prior year.
“We remain committed 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 has 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”
She posited that total revenues improved 18% YoY, with higher management fees benefiting from improved 3rd party assets under management, noting that 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 N300mn at 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” she added.