AXA, a majority shareholder in AXA Mansard Nigeria PLC has just released its 2016 half year result showing its net profit rose by 4% to EUR3.2 billion despite headwinds across the global market.
AXA said its total revenue remained stable at EUR54 billion. Its underlying earnings was also stable at EUR3.1 billion. While its adjusted earnings was down by 2% to EUR3.4 billion
Commenting on the result, Thomas Buberl said:
”AXA’s strong performance in the first half of 2016 reflects once again the pertinence of our business model and strategic choices in an environment which continues to be characterized by low interest rates and higher market volatility. We have delivered resilient underlying earnings of Euro 3.1 billion despite market headwinds and a higher cost of natural events. Our balance sheet remains very strong with a Solvency II ratio at 197%, well within our target range”.
He explained that ”In Life & Savings, we focused on profitable business growth with increased sales of Protection & Health and capital light Savings products. In Property & Casualty, we delivered strong growth in both Personal and Commercial lines while maintaining our emphasis on profitability. Asset Management continued its momentum with net inflows in both our asset managers”.
Looking forward to the next quarters, Thomas said ”In our Ambition 2020 strategy, unveiled on June 21, we committed to focus on clear growth drivers in order to achieve our objectives even in these adverse market conditions. In parallel, with the new management team and our people, we are actively pursuing the transformation of the Group, towards our vision of empowering people to live a better life”.
AXA does not explicitly reports its result from Nigeria it uses the ‘consolidation under equity method’ which means the company- the parent company essentially treats the subsidiary company as if it doesn’t exist. All of the subsidiary company’s assets and liabilities appear on the parent company’s balance sheet, and all of the subsidiary company’s revenue, expenses, gains and losses appear on the parent company’s income statement.
Therefore anyone interested in knowing what AXA’s Nigeria operations is netting will have to refer to AXA Mansard results. The company also reported that it has completed the acquisition of ”8% stake in Africa Internet Group on March 21, 2016”. AXA Mansard, its Nigerian operations is to leverage the it via partnerships with Jumia.com.
AXA currently owns 77% of AXA Mansard. The deal was closed in late 2014 for USD246 million from investors including Development Partners LLP, an African-focused private equity firm. In its half year result, AXA Mansard said its net profit rose to NGN2,2 billion compared to NGN1 billion reported last year.