By David Akinmola
AXA Mansard Insurance Plc has reported a 22 per cent increase in insurance revenues to ₦160.56 billion for the financial year ended December 31, 2025, underlining sustained growth momentum despite a challenging macroeconomic environment marked by inflationary pressures and foreign exchange volatility.
The insurer, a member of the AXA Group, disclosed this in its audited financial results released in Lagos on Monday, showing broad-based expansion across its core business segments of Property & Casualty, Life & Savings, and Health.
Gross Written Premiums (GWP) rose by 23 per cent to ₦170.87 billion from ₦138.55 billion recorded in 2024, driven by improved customer retention, new business acquisitions, and expansion of its distribution network.
A breakdown of the performance shows that Property & Casualty revenues grew by 11 per cent to ₦68.48 billion, Life & Savings increased by 14 per cent to ₦25.77 billion, while the Health segment recorded the strongest growth, rising by 40 per cent to ₦66.32 billion.
Similarly, GWP in the Property & Casualty business climbed 20 per cent to ₦73.42 billion, while Life & Savings rose 15 per cent to ₦26.84 billion. Health premiums also expanded significantly by 31 per cent to ₦70.60 billion.
Speaking on the results, Chief Financial Officer, Ngozi Ola-Israel, said the company’s performance reflects strong execution and resilience across its diversified portfolio.
She noted that although Profit Before Tax (PBT) declined sharply by 81 per cent to ₦6.12 billion, compared to ₦31.69 billion in 2024, the drop was largely due to the absence of significant foreign exchange gains recorded in the prior year.
“In FY 2024, earnings were boosted by ₦27 billion in FX gains, compared to a ₦1 billion FX loss in 2025. Adjusting for this non-recurring impact, underlying profit would have grown by 50 per cent year-on-year,” she explained.
According to her, the Group maintained a solid financial position supported by strong premium growth, prudent capital management, and adequate liquidity buffers, even as rising claims and inflation weighed on margins.
Also commenting, Chief Executive Officer, Kunle Ahmed, said the company delivered strong topline growth and stable underlying earnings despite cost pressures and global economic uncertainties.
He added that AXA Mansard’s 2025 audited results position it to exceed the new minimum capital requirements recently introduced under Nigeria’s insurance reform framework.
“In line with the new capital thresholds, our current financial position comfortably exceeds the ₦15 billion requirement for non-life business and ₦10 billion for life operations. To further strengthen capital buffers, the board has decided not to propose dividend payments for the 2025 financial year,” Ahmed said.
Industry analysts note that AXA Mansard’s decision to retain earnings aligns with a broader trend among Nigerian insurers repositioning ahead of recapitalisation requirements expected to reshape the competitive landscape.
The firm’s Insurance Service Result rose by 9 per cent to ₦14.87 billion, supported largely by a 65 per cent surge in earnings from the Property & Casualty segment. However, performance in the Life & Savings and Health segments moderated, declining by 4 per cent and 42 per cent respectively due to higher technical reserves and increased claims severity.
Operating expenses also rose during the period, with insurance service expenses increasing by 32 per cent, reflecting elevated claims across key portfolios, particularly in general accident and aviation businesses.
Despite the pressure on profitability, AXA Mansard’s balance sheet remained robust. Total assets grew by 18 per cent to ₦227.94 billion, while shareholders’ funds rose by 11 per cent to ₦52.3 billion, reinforcing its capital strength.
However, Profit After Tax dropped significantly by 98 per cent to ₦0.62 billion, impacted not only by FX-related effects but also by changes in tax regulations, including an increase in capital gains tax from 10 per cent to 30 per cent, which led to a one-off deferred tax adjustment.
From an industry perspective, analysts say the company’s performance mirrors wider trends in Nigeria’s insurance sector, where premium growth remains strong but profitability is increasingly influenced by macroeconomic headwinds, regulatory changes, and claims inflation.
The sharp contrast between revenue growth and bottom-line performance highlights the sector’s ongoing transition under IFRS 17 reporting standards, which place greater emphasis on underwriting discipline and earnings quality rather than one-off gains.
Experts also point to the rapid expansion of the health insurance segment as a key industry driver, fueled by rising healthcare costs, increased awareness, and corporate demand for employee health coverage.
Looking ahead, AXA Mansard said it would focus on strengthening underwriting discipline, enhancing operational efficiency, and deepening digital capabilities to drive sustainable growth.
Ahmed expressed optimism that as macroeconomic conditions stabilise and FX volatility eases, the company’s underlying earnings strength will become more evident.
“With a strong balance sheet, disciplined execution, and clear strategic priorities, we are well positioned to improve profitability and deliver long-term value to shareholders,” he said.
Market watchers believe insurers that successfully balance growth with cost control, capital adequacy, and innovation will emerge stronger as the industry enters a new phase of consolidation and regulatory tightening.
