Insurers boost investors’ hope with financial performance

Despite the challenging operating environment in the country, underwriting companies in the nation’s insurance industry are beginning to attract more investors across continents through their 2020 financial performance, in a bid to move the sector into a greater height.

Speaking to The Guardian on how operators could increase it gross written premium in the industry, the Chief Executive Officer, AXA Mansard insurance, Kunle Ahmed, said the outstanding performance was predominantly driven by growth across all lines of business within the organisation.

Ahmed, said in its unaudited financial report 2020, that a Gross Written Premium (GWP) of N21.08 billion as at March, 2020 up by 21% from N17.42bn in same period in 2019.

The company’s Net Premium Income also grew N8.25 billion, up 39% from N5.95bn in March 2019.

While Profit before Tax recorded a 96 per cent increase to N2.01 billion in 2020 compared with N1.02bn recorded in March 2019, the Profit after Tax moved up by 105 per sent to N1.82 billion in 2020 as against 89 billion in March 2019 .

The statement, in addition, showed a total assets of N104.32bn, up 13% from N92.28 billion within the same period while the group’s shareholders’ funds increased to N26.85bn, up 6 per cent from N25.26bn as at December 2019.

Commenting on AXA Mansard’s financials at the end of March 2020, the Chief Executive Officer of, Kunle Ahmed, said: “Despite the challenges arising from the outbreak of COVID 19 towards the end of the quarter, we were able to grow our premium incomes and recorded strong profitability growth.

“Whilst the Health business remains the fastest growing and the Commercial lines continues to hold its share of the market, our retail business continues to justify the investment in our retail structure with 46% growth over the same period last year.

“The profitability recorded during the first quarter also cut across P and C, Life and Health portfolios. We will continue to improve and make available our digital channels during this difficult time and focus on providing bespoke solutions to our customers.”

Also speaking on the development, the Chief Financial Officer, Ngozi Ola-Israel, said: “In this quarter, we have delivered 21% growth in gross revenues and 105% growth in profits after tax driven by our focus on partnering with our customers as well as sustained operational efficiencies. This will continue to be our focus as we navigate through the challenges brought on by the pandemic.

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