AXA Mansard Insurance Plc has recorded a 52 per cent decline in profit for the first quarter of 2025, with profit falling to N6.21bn, compared to N12.88bn in the same period of the previous year.
This significant drop in profit was primarily attributed to a combination of increased operating expenses, higher claims, and impairments on financial assets.
The company’s insurance revenue, however, showed a promising increase, rising by 27 per cent to N40.33bn from N31.85bn recorded in the first quarter of 2024. This growth was driven by higher premiums and a broader customer base. Despite the increase in insurance revenue, AXA Mansard faced a rise in expenses related to claims and operational costs, which ultimately eroded profitability.
Insurance service expenses jumped by 47 per cent, from N18.57bn in Q1 2024 to N27.29bn in Q1 2025. This increase was largely due to a higher volume of claims and the net expense arising from reinsurance contracts held. The company reported a net expense of N8.58bn from its reinsurance activities, slightly higher than N8.57bn in the same period last year.
Additionally, impairment losses on financial assets amounted to N74.7m, contributing to the reduction in the company’s overall financial performance. Despite the impairment charge, AXA Mansard’s investment income showed resilience, rising by 14 per cent to N5.85bn in the quarter, up from N4.7bn recorded in Q1 2024. This was attributed to higher returns on investment securities.
In line with the rise in operational costs, the company’s overall expenses increased by five per cent to N7.55bn, compared to N7.18bn in the first quarter of 2024. This increase in costs was driven by higher employee benefit expenses, which grew by 47 per cent, reaching N2.16bn, compared to N1.46bn in Q1 2024. Marketing and administrative expenses also saw a moderate rise, increasing by 3 per cent to N977.8m.
Despite the decline in profit, AXA Mansard’s total comprehensive income for the first quarter stood at N7.93bn, a 42 per cent increase from N5.6bn in Q1 2024. The growth in comprehensive income was primarily due to positive movements in the fair value of debt securities, which increased by N1.64bn, compared to a negative change of N7.32bn in Q1 2024.
The company’s earnings per share for the first quarter dropped to 69 kobo, down from 140 kobo reported in the corresponding period of the previous year. This represents a 51 per cent decline in EPS, reflecting the challenges in the current operating environment.
Despite these financial pressures, AXA Mansard remains optimistic about its future prospects. The company continues to see growth opportunities in its core insurance business and investment portfolio. The management has expressed confidence that the company’s solid foundation, coupled with strategic investments, will enable it to navigate through the challenges and deliver sustained growth in the coming quarters.
In its outlook for the rest of the year, AXA Mansard stated that it would continue to focus on managing costs, improving its claims management process, and capitalising on opportunities within the investment space to enhance profitability. The company remains committed to its long-term objectives of delivering value to its shareholders and providing excellent service to its customers.
The PUNCH reported that AXA Mansard Insurance Plc has projected an insurance revenue of N86.78bn for the second quarter of 2025, according to a forecast statement filed with the Nigerian Exchange Limited.
