AXA Mansard Insurance forecasts N16.19bn claim payout in Q3 2021

AXA Mansard Insurance forecasts N16.19bn claim payout in Q3 2021

AXA Mansard Insurance Plc, a member of the AXA Group, has released a forecast for its operating scorecards in the third quarter of this year wherein it envisaged paying N16.187 billion as claims to its policy holders.

Details of the forecast sighted by Business Metrics show that in terms of profit and loss accounts information, the insurer envisages a gross premium written of N45.78 billion, net premium income of N26.96 billion, underwriting profit of N10.1 billion and investment & other income amounting to N3.63 billion.

The company also looks forward to incurring N2.95 billion as operating expenses, and payment of N1.17 billion as taxation during the period from a projected profit before tax (PBT) of N5.59 billion, while it profit after tax is expected to read N4.42 billion at the end of the quarter.

Cash Flow Information in the forecast filed at the Nigerian Exchange Limited indicates N3.33 billion as Operating Profit Before Working Capital Changes; N19.71 billion as Net Cash Generated from Operating Activities; and N2.06 billion as Cashflow From Financing Activities.

Others are N5.04 billion as cashflow from investing activities; N16.73 billion as net increase/decrease in cash and cash equivalents; N20.25 billion as cash/bank balances at the beginning of the period; and N3.52 billion as cash or bank balances at the end of the period.

HIGHLIGHTS of its Q1 2021 Report

At the end of its first quarter operation this year, the AXA Mansard Insurance Plc reported positive numbers across major performance metrics.

These included 36 per cent growth in profit before tax which stood at N2.52 billion and 34 per cent appreciation in profit after tax at N2.63 billion.

DETAILS

• Gross Written Premium of N25.08bn, up 19% from N21.09bn in March 2020
• Net Premium Income of N8.34bn, up 2% from N8.21bn in March 2020
• Investment and Other Income of N1.64bn, down 32% from 2.39bn in March 2020
• Operating Expenses of N2.52bn, up 23% N2.05bn in March 2020
• Profit before Tax of N2.92bn, up 36% from N2.14bn recorded in March 2020
• Profit after Tax of N2.63bn, up 34% from N1.96bn in March 2020

Statement of Financial Position Highlights

• Total Assets of N109.7bn, up 5% from N104.9bn as of March 2020
• Insurance Liabilities of N40.97bn, up 16% from N35.23bn as of March 2020
• Group Shareholders’ Funds of N36.94bn, up 13% from N32.65bn as of March 2020
• Insurance Shareholders’ Funds of N31.82bn, up 29% from N24.60bn as of March 2020

Key Ratios

• Operating Expense Ratio of 20% (March 2020: 18%)
• Underwriting Expense Ratio of 9% (March 2020: 9%)
• Loss / Claims Ratio of 50% (March 2020: 51%)
• Re-Insurance Cost Ratio of 22% (March 2020: 21%)
• Return on Average Equity of 9% (March 2020: 8%)
• Return on Average Asset of 3% (March 2020: 2%)
• Earnings per Share of 7k (March 2020: 15k)