Axa Mansard Insurance coverage Plc has reported a pre-tax revenue of N6.099 billion for the nine-month interval ended September 30, 2025, representing a 82.30% decline in comparison with N34.480 billion recorded within the corresponding interval of 2024.
In line with the corporate’s unaudited monetary statements, revenue after tax (PAT) additionally dropped sharply by 80.08% year-on-year to N6.005 billion from N30.158 billion in the identical interval of 2024.
This occurred regardless of a commendable efficiency in insurance coverage operations the place income grew by 22.7% to N120.527 billion, up from N98.244 billion.
Insurance coverage service outcomes replicate weaker margins
Axa Mansard’s insurance coverage service outcome fell by 17.21% year-on-year to N10.341 billion in comparison with N12.429 billion in 9M 2024.
Insurance coverage income rose considerably to N120.528 billion, up 22.7% year-on-year from N87.845 billion within the prior interval. Nonetheless, this acquire was largely eroded by increased insurance coverage service bills, which surged to N84.815 billion (+43.67%), at the same time as internet expense from reinsurance contracts moderated by -5.05% YoY to N25.37 billion, down from N26.72 billion in 9 months of 2024.
The mixed influence of those increased prices compressed the margin of insurance coverage operations regardless of top-line progress.
Funding earnings slides as market returns tighten
Axa Mansard recorded a notable drop in complete funding return, which declined by 73.09% to N8.985 billion from N33.366 billion in 9M 2024.
The corporate’s curiosity income underneath the efficient curiosity methodology improved to N8.946 billion (+43.0%), reflecting higher yields from fixed-income property. Nonetheless, a pointy fall in different funding income from N27.694 billion in 9M 2024 to only N373 million in 2025 closely dragged down general funding returns.
This mirrors the broad market volatility within the fixed-income section throughout the interval, which impacted returns on monetary property.
Key highlights (9M 2025 vs 9M 2024)
- Insurance coverage income: N120.528 billion (+22.7% YoY)
- Insurance coverage service bills: N84.815 billion (+43.67% YoY)
- Internet expense from reinsurance contracts: N25.370 billion (-5.05% YoY)
- Insurance coverage service outcome: N10.341 billion (-17.21% YoY)
- Funding return: N8.985 billion (-73.07% YoY)
- Different earnings: N4.456 billion (+37.54% YoY)
- Working bills: N10.673 billion (+10.24% YoY)
- Revenue earlier than tax (PBT): N6.099 billion (-82.3% YoY)
- Revenue after tax (PAT): N6.005 billion (-80.08% YoY)
- Whole Belongings: N220.58 billion (+13.93% 9M)
- Shareholders’ funds: N56.32 billion (+19.55% 9M)
- Earnings per share: 63kobo (-80.73% YoY)
Cursory evaluation
Axa Mansard Insurance coverage Plc posted a stable 22.7% year-on-year improve in insurance coverage income to N120.53 billion within the 9 months ended September 30, 2025, reflecting improved underwriting efficiency and enterprise enlargement throughout its retail and company segments. Nonetheless, the expansion was overshadowed by a steep 43.67% surge in insurance coverage service bills to N84.82 billion, largely attributable to increased claims payouts and operational prices pressures.
Whereas the corporate benefited from diminished reinsurance outflows — with internet bills from reinsurance contracts declining by 5.05% to N25.37 billion — the general insurance coverage service outcome fell 17.21% to N10.34 billion, indicating value escalation might need eroded the positive aspects from income progress and extra environment friendly reinsurance administration, leaving the underwriting margin underneath strain within the interval underneath overview.
Funding earnings slumps as market volatility bites
Essentially the most vital drag on Axa Mansard’s efficiency got here from its funding portfolio, the place returns dropped sharply by 73.07% to N8.99 billion. The underwriter’s funding efficiency suffered a heavy blow in comparison with the sturdy earnings seen in 2024.
Regardless of this, the corporate recorded a 37.54% progress in different earnings to N4.46 billion, reflecting improved non-core income streams akin to price earnings and honest worth positive aspects on non-investment property. However, these positive aspects had been inadequate to cushion the influence of the stoop in funding returns, resulting in a major contraction in general profitability.
Profitability declines sharply amid rising value base
The mixture of upper bills and diminished funding earnings pushed revenue earlier than tax (PBT) down by 82.3% to N6.10 billion, whereas revenue after tax (PAT) plunged 80.08% to N6.01 billion. Consequently, earnings per share dropped to 63 kobo in contrast with N3.27 in corresponding interval of 2024, representing an 80.73% year-on-year decline.
Steadiness sheet
Regardless of the sharp fall in profitability, the corporate’s steadiness sheet remained resilient. Whole property expanded by 13.93% to N220.58 billion from N193.608 billion in 9 months.
When in comparison with liabilities within the 9 months of 2025, complete liabilities elevated by 12.35% to N158.11 billion, up from N140.73 billion within the nine-month interval. Notably, shareholders’ funds rose by a major 19.55% to N56.32 billion, underscoring continued capital adequacy and steadiness sheet power.
The 9M 2025 efficiency demonstrates resilience in income technology but additionally highlights vital profitability challenges that would influence on fairness worth within the brief time period.
Going ahead, rebalancing funding publicity and tightening expense controls shall be essential in reversing the revenue decline and sustaining shareholder worth within the coming quarters.
Be First to Comment