AXA Mansard Insurance Plc records steady expansion across its core segments

By Philippine Duru

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AXA Mansard Insurance Plc has posted strong revenue growth for the 2025 financial year, even as profits declined sharply due to foreign exchange volatility and rising cost pressures.

According to its audited results released in Lagos, the insurer recorded a 22% increase in insurance revenue, which rose to ₦160.56 billion. The performance reflects steady expansion across its core segments—Property & Casualty, Life & Savings, and Health—despite a tough macroeconomic environment marked by inflation and currency instability.

Gross Written Premiums (GWP) also grew by 23% to ₦170.87 billion from ₦138.55 billion in 2024, driven by improved customer retention, new business growth, and a broader distribution network.

Segment performance showed mixed but generally positive momentum. Property & Casualty revenue rose by 11% to ₦68.48 billion, Life & Savings increased by 14% to ₦25.77 billion, while the health segment led growth with a 40% jump to ₦66.32 billion. Premium growth followed a similar pattern, with Property & Casualty up 20%, Life & Savings rising 15%, and Health expanding by 31%.

Chief Financial Officer Ngozi Ola-Israel said the results highlight the company’s resilience and strong execution strategy. However, Profit Before Tax fell sharply by 81% to ₦6.12 billion, largely due to the absence of significant FX gains recorded in the previous year.

She explained that while the company recorded ₦27 billion in foreign exchange gains in 2024, 2025 saw a ₦1 billion FX loss. Adjusting for this one-off effect, underlying profit would have grown by about 50% year-on-year.

Chief Executive Officer Kunle Ahmed noted that the company delivered solid topline growth and stable core earnings despite cost pressures and global uncertainties. He added that AXA Mansard remains well-capitalised and is positioned to exceed new regulatory capital requirements in Nigeria’s insurance sector.

To strengthen its capital base further, the board has opted not to declare dividends for the 2025 financial year—a move analysts say aligns with broader industry trends as insurers prepare for recapitalisation.

Operationally, the company saw its Insurance Service Result rise by 9% to ₦14.87 billion, supported by a strong 65% increase in Property & Casualty earnings. However, the Life & Savings and Health segments recorded declines of 4% and 42% respectively, due to higher claims and increased technical reserves.

Rising claims also pushed insurance service expenses up by 32%, particularly in general accident and aviation portfolios, putting pressure on margins.

Despite profitability challenges, AXA Mansard maintained a strong balance sheet. Total assets grew by 18% to ₦227.94 billion, while shareholders’ funds increased by 11% to ₦52.3 billion.

Profit After Tax dropped significantly by 98% to ₦0.62 billion, impacted by FX losses and tax changes, including an increase in capital gains tax from 10% to 30%, which resulted in a one-off deferred tax adjustment.

Analysts say the company’s performance reflects broader trends in Nigeria’s insurance industry, where strong premium growth is increasingly offset by macroeconomic challenges, regulatory shifts, and rising claims costs. The transition to IFRS 17 standards is also reshaping how insurers report earnings, placing greater emphasis on sustainable underwriting performance rather than one-off gains.

Looking ahead, AXA Mansard plans to focus on tighter underwriting discipline, improved operational efficiency, and enhanced digital capabilities to sustain growth. The company remains optimistic that easing FX pressures and stabilising economic conditions will support stronger profitability in the future.