AXA Mansard Insurance Plc has achieved a gross written premium of N33.9 billion in its financial year end 2018, up by 26 per cent from the N26.8 billion in 2017.
The company’s net premium income grew by 43 per cent to N19.7 billion from N13.8 billion in 2017, while profit before tax rose by five per cent to N3.4 billion in 2018, from N3.2 billion in 2017.
However, profit after tax was impacted by significant one-off tax provisions during the year, resulting in a seven per cent dip to N2.5 billion from N2.7 billion in 2017.
The company closed the year with total assets at N73.8 billion, representing 11 per cent growth from N66.5 billion recorded in 2017, while shareholders’ funds grew by three per cent to N20.9 billion from N20.3 billion in the same period, remaining well in excess of regulatory requirements.
The Chairman, Olusola Adeeyo who made this known at the company’s 27th Annual General Meeting held at Oriental Hotel, Lekki, Lagos, said the growth witnessed in gross written premium was supported by continued growth in their health business, making the company the health insurance industry leader while maintaining their position in other segments.
On dividend, he explained that due to the guidelines for a Tier-Based Minimum Solvency Capital (TBMSC) Policy released by the National Insurance Commission (NAICOM), they took strategic decisions to optimise their balance sheet to align with the guidelines in readiness for the implementation of the policy.
He stated that although, the policy was later withdrawn and cancelled by the regulator, they had already taken the necessary actions on it.
He disclosed that while the step taken had a significant impact on their working capital, they are confident that the benefits in terms of readiness to secure future business opportunities and ensure the continued profitability of the company far outweighs any short term impact.
‘’It is for highlighted reasons that we did not propose to pay dividends this year’’, he told the shareholders.
The Managing Director, AXA Mansard, Kunle Ahmed, added that NAICOM had early in the first quarter of 2018, taken action to curb rate cutting in the insurance industry by releasing approved premium rates for compulsory insurance and gave directive to all insurance companies to be guided by the rates.
Speaking on the performance ratio, he said their operating expense ratio remained relatively flat despite their growth, increasing marginally to 18 per cent in 2018
He said this is positive outcome considering the growth of the top line and reflects their continued effort to ensure operational efficiency.
“Our reinsurance cost ratio also increased marginally to 21 per cent from 20 per cent, as a result of changes made to treities and focus on the mid-size business segment which they expect will assist their quest to improve margins.
Growth in total assets under management continued this year, with the business achieving growth of 40 per cent to N106.6 billion as at December 31, 2018, from N76.1 billion in the previous year”, he added.