Axa Mansard, a major player in the general and business insurance sector, declared a higher profit after tax compared to its performance for the same quarter last year.
In a statement released by the company, AXA Masard’s gross premium grew by 26% to NGN 8.8 billion compared to NGN 7 billion it recorded in the same quarter last year.
As an indication of a stagnating economy, the insurer is not perhaps sighning new contracts to grow other incomes. Axa Mansard’s fee and income from contracts was almost the same it recorded in the same quarter last year. Last quarter was NGN 262 million compared to NGN 265 million last year.
The company had cut its expenses for marketing and administration as a result of the slowdown. However, its acquisition by AXA late last year made it to spend about NGN 268 million last quarter compared to NGN 326 million it spent last year.
As a going concern, AXA Mansard’s net asset is still distant from its liabilities. Its total liabilities increased from NGN 31 billion compared to NGN 36 billion it declared last year. However, as a sign of a healthy balance sheet, its assets rose from NGN 51 billion to NGN 55 billion last quarter.
Mansard has taken bullish steps in recent times to diversify the business from conventional insurance. The company has invested in Africa Internet Group, AIG to sell its products on the company’s eCommerce property such as Jumia, Jovago etc.
However, bets like this might take time to contribute positively to the balance sheet of the company. AIG is looking at making profit in the next three years. The company is already in USD 125 net debt as at last quarter.