AXA Mansard Insurance Plc, a member of the AXA Group and a global insurance and asset management firm has said its Insurance revenues rose by 13 per cent to ₦19.4 billion for the first quarter that ended March 31, 2023, following the implementation of the IFRS17 and IFRS9 accounting standards, which became effective on January 1, 2023.
It said in a statement that gross earned premiums (Insurance revenues) become the principal revenue indicator given the change in accounting standards, Life & Savings up 23% to ₦4.7 billion while Health rose 23% to ₦7.5 billion.
According to the underwriter, Property, and Casualty was down two per cent to ₦7.3 billion, gross written premiums were up 20% to ₦34.4 billion, also Life and Savings up 20% to ₦6.88 billion with Health up 22% to ₦12.9 billion and Property & Casualty up 19% to ₦14.9 billion.
The firm said that commercial activity of insurance operations will now be reported using insurance (earned) revenues as against gross written premiums (“GWP”).
The reinsurance expenses will now also be reflected as “net expenses from reinsurance contracts held” with the main difference from what was previously reported being the netting of commissions received and claims recoveries from assumed reinsurance businesses. For asset management, commercial activity continues to be measured on revenues.
Commenting on the results, the Chief Financial Officer, Mrs. Ngozi Ola-Israel, said that the double-digit revenue growth of 13% from ₦17.3 billion to ₦19.4 billion and net premium income growth of 21% from ₦11.6bn to ₦14.0bn largely driven by the life and health business insurance revenues which increased by 23% on a year-on-year basis.
This achievement affirms our ambitions to achieve sustainable revenue growth and demonstrates our ability to execute our strategy in a challenging and evolving business environment. Our operating performance improved significantly, with PBT growth of 248% to 1.9bn from 0.5bn last year which was driven by improved performance within the P&C and L&S segments as well as a significant recovery from the health segment.
Speaking also on the financials at the end of the first quarter of 2023, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said “We started the 2023 financial year on a strong footing. We achieved improved revenue and profit before-tax growth well ahead of our projections. With our focus on sustainable growth and resilience, we continue to take steps to explore new ways to strengthen our balance sheet whilst ensuring efficiency in our underwriting and claims processes. Looking forward to the rest of the year, we are optimistic about the opportunities that exist for our business as we leverage our technological and digital capabilities as well as the dedication of our employees and support of other stakeholders to continually deliver value to our customers.”
