AXA Mansard Plc (NGX: MANSARD) has reported a 241.61% growth in its profit for the first quarter period ended 31st March, 2023.
According to its unaudited financial statements for the period seen by Investogist, the Insurer reported that it was able to grow its profit from N463.84mn in the first quarter of 2022 to N1.58bn in the first quarter of 2023.
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The reported profit is more than double the N673.11mn forecasted by the company.
A review of the consolidated statement of comprehensive income showed that the company was able to translate it increased insurance revenue to increased profit by ensuring that the increased revenue did not bring about an increased insurance service expenses.
Analysis of the Financial Statements
Income Statement:
- Insurance revenue: MANSARD reported that for the period under review that it earned N19.43bn in Insurance revenue, 12.60% higher than the N17.25bn it earned in Q1 2022. These revenue came from Non-life insurance which brought in N14.86bn, AXA Mansard Health (HMO) which brought in N12.76bn, and Life (Group life and individual life) which brought in N6.75bn. While all summed up to a gross written premium of N34.39bn, MANSARD made provisions for unearned premium amounting to N7.54bn for Non life, N2.01bn for Group life and N5.40bn for AXA Mansard Health (HMO).
- Insurance service expenses: The insurer spent N10.14bn on its insurance expenses, 8.00% lower than the N11.03bn it spent in Q1 2022. MANSARD paid N10.12bn in claims, and a total of N1.67bn in underwriting expenses.
- Insurance service result: MANSARD reported a net income of N3.79bn from its insurance services, 97.43% higher than the N1.92bn it reported in Q1 2022.
- Interest income: Interest income dropped by 7.20%, from N1.48bn to N1.37bn, primarily because of the marginal reductions in its interest income on investment securities, asset management fees, dividend income and rental income.
- Employee benefit expenses: MANSARD spent N1.63bn on employee benefit expenses, 43.87% higher than the N1.13bn it spent in Q1 2022. It reported in increase in wages and salaries, from N840.44mn to N901.96mn and significant increase in performance-based expenses, from N187.73mn to N523.93mn.
- Other operating expenses: There was a 9.23% increase in the company’s operating expenses, from N1.07bn in Q1 2022 to N1.17bn in Q1 2023.
- Profit Before Tax: N1.90 billion, 247.67% higher than the N538.01mn it reported in Q1 2022.
- Profit After Tax: N1.58 billion, 241.61% higher than the N463..01mn it reported in Q1 2022.
- Earnings Per Share: 20 kobo (5 kobo in Q1 2022).
Balance Sheet:
- Total Assets: N123.51 billion, compared to N105.15 billion as at 31st December 2022 (17.46% Increase). N44.84bn was on investment securities, while cash and cash equivalents was N15.99bn.
- Total Liabilities: N90.11 billion, compared to N71.28 billion as at 31st December 2022 (26.42% Increase). Insurance contract liabilities accounted for N69.01 billion while Investment contract liabilities and other liabilities accounted for N6.40bn and N6.40bn respectively. The major items on the other liabilities is the N4.33bn creditor and accruals sum and N982.44mn lease liabilities.
- Total Equity: stood at N33.39 billion, a 1.40% decrease from N33.87 billion as at 31st December 2022.
- Retained earnings: N10.08bn, against N8.31BN as at 31st Dec. 2022, 21.22% up.
Cashflow:
- Operating activities: N10.02 billion was generated from operating activities, against N6.82 billion generated in Q1 2022.
- Investing activities: N7.65 billion was used in investing activities, against N8.62bn used for the same activity in Q1 2022.
- Financing activities:
- Cash and cash equivalents at the end of the period was N15.99 billion.
There was no corporate action announcement following the release of the financial statements.
About the Company
AXA Mansard Insurance Plc and its subsidiaries underwrite life and non-life insurance contracts.
The Group also issues a diversified portfolio of investment contracts to provide its customers with asset management solutions for their savings and retirement needs as well as provide pension administration and management services to its customers.
All these products are offered to both domestic and foreign markets. The Group does business in Nigeria and employs about 294 people.
The Company is a public limited company incorporated and domiciled in Nigeria. The address of its registered office is at ‘Santa Clara Court, Plot 1412, Ahmadu Bello Way Victoria Island, Lagos, Nigeria. The Company is listed on the Nigerian Stock Exchange, with 9,000,000,000 outstanding shares.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur