Despite a 30% growth in gross written premium for the year ended December 31, 2017, directors of AXA Mansard, on Wednesday reported a mere 2% limp in profit after tax for the period, even as they have recommended a six kobo dividend per share for approval at the next annual general meeting to consider the accounts.
According to the result submitted to the Nigerian Stock Exchange (NSE), gross written premium rose from N20.713bn to N26.824bn; while gross premium income increased to N26.198bn from N20.676bn; with non-life as the biggest premium earner at N11bn, while the life business yielded N3.87bn, bringing total insurance revenue to N14.71bn; followed by the N5.871bn from the health maintenance segment. Property development contributed N3.026bn; and pension management, N580.284m.
Re-insurance expenses increased to N12.409bn from N9.727bn; leaving net premium income at N13.788bn, representing a 26% improvement over the N10.949bn recorded in 2016.
Fee and commission on insurance contracts grew to N1.545bn from N995.557m, resulting in net underwriting income of N15.333bn from N11.944bn.
Gross claims expenses jumped to N15.849bn, which represented N6.486bn or 69.27% rise from N9.363bn; just as claims expenses recovered from reinsurers jumped by N3.763bn or 148.33% from N2.547bn in 2016 to N6.311bn; while underwriting expenses increased to N2.936bn from N2.071bn. Changes in individual life reserves, though still negative improved to N9.363m from N162.838m; even as changes in annuity reserves turned negative at N265.049m from a positive of N98.098m, following which net underwriting expenses increased to N12.749bn from N8.952bn.
Total underwriting profit slipped by 14% from N2.992bn to N2.584bn; while investment income rose to N5.119bn from N3.836bn; net losses on financial instruments dropped to N219.784m from N576.17m. Net gains on investment property fell to N2.055bn from N2.811bn; with profit on investment contracts rising to N249.899m from N198.85m; other income also closed at N173.72m from N120.677m; as total investment income came to N7.378bn from N6.391bn.
Expenses for marketing and administration rose to N1.692bn from N1.425bn; employee benefit expense increased slightly from N2.054bn to N2.399bn; other operating expenses was constrained at N2.274bn from N2.287bn.
Writeback of premium receivables stood at N26.18m from impairment of N46.285m; following which results of operating activities stood at N3.232bn profit from N3.125bn; just as finance cost dropped to N390.687m from N444.224m.
Profit before tax was flat at 3% from N3.125bn to N3.232bn; while income tax expense rose to N556.991m from N490.631m; resulting in net profit of N2.675bn from N2.634bn; which translated to Earnings Per Share of 19.16 kobo, 4% down from 20 kobo in the prior year.