AXA Mansard Insurance Plc has reported a 52 per cent decline in profit for the first quarter of 2025, with its profit dropping to N6.21 billion from N12.88 billion in the same period last year.
The company attributes this downturn mainly to increased operating expenses, higher claims, and impairments on financial assets.
However, the firm’s insurance revenue saw a positive shift, growing by 27 per cent to reach N40.33 billion, compared to N31.85 billion in Q1 2024. This growth was driven by a larger customer base and higher premiums.
Despite this increase in revenue, AXA Mansard faced rising operational costs that affected its profitability. Insurance service expenses surged by 47 per cent, increasing from N18.57 billion in Q1 2024 to N27.29 billion in Q1 2025. The rise in costs was largely due to a higher volume of claims and the net expense from reinsurance contracts, which amounted to N8.58 billion, slightly higher than N8.57 billion in the previous year.
Impairment losses on financial assets contributed to the decline in the company’s overall financial performance, with the company recording a charge of N74.7 million.
On a more positive note, AXA Mansard’s investment income demonstrated resilience, growing by 14 per cent to N5.85 billion, up from N4.7 billion in the same quarter of 2024. This growth was attributed to higher returns from investment securities.
The company’s total expenses also saw an uptick, rising by 5 per cent to N7.55 billion from N7.18 billion in Q1 2024. This increase was primarily driven by a 47 per cent jump in employee benefit expenses, which reached N2.16 billion, up from N1.46 billion in the previous year. Marketing and administrative expenses also saw a modest increase of 3 per cent , climbing to N977.8 million.
Despite the overall decline in profit, AXA Mansard’s total comprehensive income for the first quarter stood at N7.93 billion, a 42 per cent increase from the N5.6 billion reported in Q1 2024. This growth in comprehensive income was primarily due to positive changes in the fair value of debt securities, which increased by N1.64 billion, compared to a negative change of N7.32 billion in the previous year.
The company’s earnings per share (EPS) dropped to 69 kobo, down from 140 kobo in Q1 2024, marking a 51 per cent decline in EPS, which reflects the challenges faced in the current market environment.
Despite these financial challenges, AXA Mansard remains optimistic about its prospects. The company continues to see growth potential in its core insurance business and investment portfolio. Management is confident that with its strong foundation and strategic investments, the company will overcome current hurdles and achieve sustainable growth in the coming quarters.
Looking ahead, AXA Mansard plans to focus on managing costs, improving claims management processes, and capitalising on investment opportunities to boost profitability. The company remains committed to its long-term goals of providing value to shareholders and delivering exceptional service to its customers.
