Axa Mansard Insurance report 58.5% jump in FY profit

Axa Mansard Insurance has released its 2016 full-year financial results, showcasing a significant 58.5% growth in profit after tax. Despite facing challenges such as a rise in claims and a harsh economic environment in Nigeria, the company managed to achieve impressive financial performance. The reinsurance expenditure jumped to 9.7 billion naira compared to 6.9 billion naira in 2015, largely attributed to the impact of Nigeria's forex crisis. Kola Oni, the Head of Strategy, Planning, and Marketing at Axa Mansard, recently discussed the financial numbers on CNBC Africa. Oni highlighted the influence of FX volatility on the numbers, stating that adjustments had to be made due to currency devaluation affecting policies that were FX-nominated. The company made 1.8 billion in FX gains, driven by cash positions and FX-nominated assets, despite facing losses on FX-denominated liabilities. However, the overall impact was positive, indicating resilience in the face of economic challenges. Looking ahead, Oni expressed cautious optimism, noting a possible reduction in claims ratio with an improved FX position and a likely boost in consumer spending, which could positively impact the insurance industry amid the ongoing recession. Axa Mansard's subsidiaries, particularly the health insurance business, experienced increased claims due to economic conditions, but overall, the company managed to report positive results. The pensions investment arm faced challenges from declining government revenues affecting contributions from public sector workers. However, the company's diverse business portfolio helped mitigate some of these impacts. On the retail business front, Axa Mansard saw slow growth in the first half of the year but witnessed an uptick in the second half, indicating a positive trajectory. The retail segment was more affected by economic conditions compared to the corporate sector, but with the gradual economic recovery, the company expects a turnaround in the retail business. Axa Mansard remains cautiously optimistic about the future outlook, relying on strategic diversification and market responsiveness to navigate the challenging economic landscape. The company's ability to adapt to changing market dynamics and capitalize on opportunities bodes well for its continued growth and success.