AXA Mansard, a Nigerian subsidiary of AXA said its net profit for the year 2016 rose to NGN2,6 compared to NGN1,6 posted in the year before.
Despite being a recessionary year, gross premium written rose to NGN20,7 billion as opposed NGN16,5 billion in 2015.
However, as a result of the crash in the value of the Naira (NGN), reinsurance expenditure rose to NGN9,7 billion. In 2015, the company expanded NGN6,9 billion on the same item.
Should the Naira continue to see more pressure, insurance companies in Nigeria will have to cough out more funds to their reinsurers. The impact of this will be more devastating to smaller insurers whose book are already in the red prior to the Forex crisis.
Fees and commissions on insurance contracts were nealy unchanged. In 2016, the company recorded NGN995 million. This slightly went down to NGN984 million. This might suggest that the company was more on maintenance level as there was low growth of new contracts.
AXA Mansard’s investment arm seems to be doing well as its total investment income rose to NGN6,3 billion compared to NGN4,5 billion.
At the end of the year, the company’s asset rose by nearly NGN3 billion to NGN54,9 billion compared to NGN51,2 billion in 2015. However, the same pattern was seen in its liabilities which rose to NGN34,7 billion versus NGN31,5 billion in 2015
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AXA Mansard Insurance is a Nigerian financial service group with interest in insurance, asset and investment management, health insurance, property development and pension fund administration and management. AXA Mansard Group comprises AXA Mansard Insurance Plc. and four subsidiaries all operating in Nigeria.
AXA Mansard is majorly owned by AXA with over 71% stake as at 2016.