(Audited Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Insurance Revenue: ₦131.34 billion (2024) vs. ₦82.75 billion (2023) → 59% growth
- Insurance Service Result: ₦12.84 billion (2024) vs. ₦11.27 billion (2023)
- Net Investment Income: ₦35.56 billion (2024) vs. ₦17.26 billion (2023)
- Profit Before Tax (PBT): ₦30.98 billion (2024) vs. ₦15.77 billion (2023)
- Net Profit After Tax: ₦26.19 billion (2024) vs. ₦12.05 billion (2023)
- Earnings Per Share (EPS): 279 kobo (2024) vs. 128 kobo (2023)
- Total Assets: ₦185.12 billion (2024) vs. ₦141.13 billion (2023) → 31% growth
AXA Mansard Insurance Plc achieved remarkable revenue and profit growth, with net profit more than doubling year-over-year, reflecting its ability to capitalize on strategic market opportunities. The significant increase in investment income, driven by fair value gains, higher interest revenue, and optimized portfolio allocations, played a key role in the company’s financial success.
The company leveraged strong risk-adjusted investment strategies, ensuring stable returns across different market conditions. Additionally, AXA Mansard expanded its premium collection efforts, effectively increasing policyholder retention and new customer acquisitions. By diversifying its revenue sources and strengthening its underwriting process, the company improved profitability despite rising operational costs.
Furthermore, the successful implementation of digital insurance solutions and AI-driven financial models allowed AXA Mansard to streamline claims processing, optimize asset allocations, and enhance policy pricing. These advancements contributed to greater efficiency, stronger financial resilience, and long-term sustainability.
Operational Highlights & Cost Management
- Insurance Service Expenses: ₦85.43 billion (2024) vs. ₦52.05 billion (2023)
- Net Expenses from Reinsurance Contracts: ₦33.07 billion (2024) vs. ₦19.43 billion (2023)
- Marketing & Administrative Expenses: ₦4.07 billion (2024) vs. ₦2.64 billion (2023)
- Employee Benefit Expense: ₦6.73 billion (2024) vs. ₦5.59 billion (2023)
- Other Operating Expenses: ₦9.08 billion (2024) vs. ₦5.62 billion (2023)
The company effectively managed its operational expenses, with higher marketing and administrative costsreflecting investment in customer acquisition and digital insurance expansion. The rise in employee benefits and operational costs aligns with the company’s efforts to strengthen human capital and operational efficiencies.
Capital Expenditures & Shareholder Returns
- Total Equity: ₦52.64 billion (2024) vs. ₦41.42 billion (2023)
- Retained Earnings Growth: ₦34.14 billion (2024) vs. ₦14.37 billion (2023)
- Contingency Reserves: ₦8.76 billion (2024) vs. ₦6.52 billion (2023)
- Fair Value Reserves: ₦(15.97) billion (2024) vs. ₦(2.11) billion (2023)
- Dividend Paid: No dividend declared for 2024
AXA Mansard Insurance Plc continues to maintain a strong capital base, with total equity increasing by 27%, providing a solid foundation for future growth. This increase in equity reflects prudent financial management, strategic reinvestment of retained earnings, and disciplined capital allocation to sustain long-term profitability.
Despite market volatility impacting fair value reserves, the company remains financially resilient, leveraging a diversified investment portfolio and strategic hedging techniques to mitigate risks. The company’s approach to balancing risk exposure with stable returns ensures financial stability even in uncertain economic conditions.
Additionally, AXA Mansard is reinvesting retained earnings into expansion initiatives, new product development, and digital transformation projects, enhancing operational capabilities and market competitiveness. This forward-looking strategy is expected to drive innovation, increased market share, and enhanced customer experience, positioning the company for sustained growth in the coming years.
Management Commentary
Key Takeaways:
- Strong revenue and profit growth, reflecting increased insurance business and investment gains.
- Substantial improvement in profitability, with net profit more than doubling year-over-year.
- Market volatility impacted fair value reserves, leading to a significant loss in OCI.
- Focus on digital transformation and operational efficiency to drive further growth.
Strategic Initiatives:
- Expansion into digital insurance platforms to improve accessibility and customer engagement.
- New product lines and service diversification to capture emerging market opportunities.
- Investment in automation and AI-driven underwriting models for greater efficiency.
- Continued market penetration strategies to strengthen competitive positioning.
Outlook for 2025
AXA Mansard Insurance Plc remains optimistic about sustained revenue and profitability growth, with a focus on:
- Enhancing digital insurance offerings for a broader market reach.
- Investing in technology-driven solutions for better underwriting and risk assessment.
- Further cost management strategies to maintain profitability margins.
- Potential dividend payout strategy under consideration for 2025.
With a strong balance sheet, effective risk management, and strategic expansion initiatives, the company is well-positioned for long-term value creation and sustained market leadership.
Conclusion
AXA Mansard Insurance Plc delivered outstanding financial performance in 2024, marked by 59% revenue growth, a significant rise in profitability, and an expanded asset base. The company’s ability to successfully navigate economic volatility while driving sustainable financial growth and strategic investments has reinforced its market leadership.
The company’s focus on investment income, digital transformation, and operational efficiencies has positioned it for continued expansion in 2025. Its emphasis on AI-driven underwriting, automated claims processing, and customer-centric digital insurance solutions has significantly improved operational effectiveness and customer satisfaction. Additionally, AXA Mansard is proactively exploring partnerships and collaborations to enhance service offerings and diversify revenue streams.
By integrating data analytics for risk assessment, expanding market reach, and adopting cost-effective financial strategies, the company aims to further strengthen its profitability and long-term shareholder value in the coming years.
