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Strong revenue growth underpins improved profitability as AXA Mansard Insurance plc. records 12% growth in Insurance revenues following implementation of IFRS 17


AXA Mansard Insurance plc, a member of the AXA Group, announces its financial results for the second quarter ended June 30, 2023 following the implementation of the IFRS17 and IFRS9 accounting standards, which became effective on January 1, 2023. Consequently, Gross earned premiums (Insurance revenues) becomes the principal revenue indicator given the change in accounting standards:

  • Insurance revenues up 12% to ₦39bn
    • Property & Casualty down 5% to ₦14.5bn
    • Life & Savings up 23% to ₦8.9bn
    • Health up 27% to ₦15.7bn
  • Gross Written Premiums up 22% to ₦54.8bn
    • Property & Casualty up 19% to ₦22.8bn
    • Life & Savings up 20% to ₦10.7bn
    • Health up 26% to ₦21.3bn


Key Note:

Commercial activity of insurance operations will now be reported using insurance (earned) revenues as against gross written premiums (“GWP”). The reinsurance expenses will now also be reflected as “net expenses from reinsurance contracts held” with the main difference from what was previously reported being the netting of commissions received and claims recoveries from assumed reinsurance businesses. For asset management, commercial activity continues to be measured on revenues.

 Commenting on the results, Mrs. Ngozi Ola-Israel, the Chief Financial Officer said, “In the first half of the year, we grew Gross Written premiums by 22%, delivering insurance revenue growth of 12% from ₦34.7bn to ₦39.0bn despite our challenging and evolving economic environment particularly in the second quarter of the year. This performance further reinforces our resilience and capacity to produce sustainable results even in a challenging business environment. Our operating performance also improved significantly, with PBT growth of 528% to 14.8bn from 2.4bn last year, owing to significant improvement in the P&C and L&S segments, net FX gains from devaluation effect as well as the significant recovery from the health segment.


Commenting on AXA Mansard’s financials at the end of the first half of 2023, Mr. Kunle Ahmed, the Chief Executive Officer, AXA Mansard Insurance, said “We are proud to retain the trust of our customers, brokers, and partners despite the challenging economic environment. Our outstanding performance demonstrates our dedication to ensuring sustainable growth in the face of this environment as we achieved improved revenue and operating performance in the first half of the year. With our focus on resilience, we will remain an exceptional insurer with great financial strength, excellent underwriting capabilities and efficient claims management processes. Looking forward into the second half of the year, we are optimistic about the opportunities for our business through improved processes with our technical and digital capabilities while prioritizing our customer-centricity, growth and profitability.

Overview of Business Segments- HY’23

Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Insurance revenues (Group) 39.0 bn 34.7 bn ▲    12%
o/w Property & Casualty 14.5 bn 15.3 bn ▼    5%
o/w Life & Savings 8.9 bn 7.2 bn ▲    23%
o/w Health 15.7 bn 12.4 bn ▲    27%


Insurance revenues improved by 12% YoY (39.0bn vs 34.7bn). Growth is driven by Health (+27%) and L&S (+23%) partly offset by P&C decline of 5% which is due to change in timing of booking of key business in the current period vs this time last year. The life and health business recorded growth resulting from improved customer retention, increased share on existing business and the acquisition of new businesses.



Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Gross Written Premiums (Group) 54.8 bn 45.0 bn ▲    22%
o/w Property & Casualty 22.8 bn 19.2 bn ▲    19%
o/w Life & Savings 10.7 bn 8.9 bn ▲    20%
o/w Health 21.3 bn 16.9 bn ▲    26%


Gross revenues: grew 22% YoY (54.8bn vs 45.0bn). Improved performance is due to our ability to acquire new businesses as well as our improving retention rates. Growth is spurred by Health (+26%), L&S (+20%) and P&C (+19%). P&C volumes performance is attributable to improved performance in the commercial lines growing by 19% YoY. Life volumes acceleration is driven by the impacts of the new life savings product. Health volumes improves owing to increased premium from re-pricing and renewal of key businesses.


Property and Casualty

Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Gross revenues (P&C) 22.8 bn 19.2 bn ▲           19%
o/w Fire 3.3 bn 2.1 bn ▲           55%
o/w Accident 1.8 bn 1.6 bn ▲           10%
o/w Motor 2.0 bn 1.5 bn ▲           36%
o/w Marine 0.4 bn 0.5 bn ▼            6%
o/w Engineering 0.5 bn 0.3 bn ▲           33%
o/w Oil & Energy 14.5 bn 12.0 bn ▲           21%
o/w Aviation 0.4 bn 1.2 bn ▼           66%


P&C improves 19% YoY due to strong performance in the Oil & Energy portfolio, which grows by 21% and is partially offset by declines in Aviation and Marine due to changes in the structure of key businesses. Growth is also driven by improved performance in personal lines as well as increased premium on strong renewals and new businesses. Focus remains on maintaining efficiency to ensure the growth and profitability of all our portfolios.


Life and Savings

Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Gross revenues (Group) 10.7 bn 8.9 bn ▲           20%
o/w Group Life 5.6 bn 5.7 bn ▼              1%
o/w Individual Life 5.0 bn 3.2 bn ▲           59%


L&S segment grows 20% YoY owing to improved performance in individual life business (+59%) which is partly offset by the 1% dip in group life due to delayed renewals of key businesses. Growth in the individual life portfolio is largely driven by the impact of the increase in customers onboarded and increased volumes from protection with the new life savings products. In addition, improved agent productivity has also contributed to the growth in revenues.


Asset Management

Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Gross Revenues 0.6 bn 0.5 bn ▲           14%
Gross (AUMs) 151.9 bn 118.9 bn ▲           28%
o/w Own AuMs 65.8 bn 52.8 bn ▲           25%
o/w 3rd Party AuMs 86.1 bn 66.1 bn ▲           30%


Total revenues improved 14% YoY, with higher management fees benefiting from improved 3rd party assets under management. Own AuMs improved by 25% with 3rd party client count growing by 18% leading to a 30% growth in 3rd party AuMs and 28% growth in total AuMs.


Operating Performance

Key figures (in Naira billion, unless otherwise noted)
  HY 2023 HY 2022 %∆
Profit Before Tax (Group) 14.8 bn 2.4 bn ▲    528%
o/w Property & Casualty 8.3 bn 1.9 bn ▲    346%
o/w Life & Savings 1.2 bn 1.8 bn ▼    37%
o/w Health 3.5 bn (0.5 bn) na


Overall, PBT significantly improved by 528% YoY owing to 346% growth in P&C profits and a significant growth in the health business which is partly offset by a 37% dip in the life business. 346% growth in P&C is attributable to improved revenues and underwriting performance as well as fair value gains. The dip in the life business is driven by increased claims experienced during the period compared to last year and partly offset by reduced underwriting expenses and higher investment margins. The health business continues with its recovery to deliver a 3.5bn profit owing to higher volumes, improved claims management and operating efficiency.


Financial Position Metrics

Financial Position
  HY 2023 FY 2022 %∆
Shareholders’ Funds 41.4 bn 29.7 bn ▲      39.5%
  HY 2023 HY 2022 %∆
Return on Average Shareholder’s Equity 41.5% 7.7% ▲33.8 pts
Return on Average Assets 12.0% 2.1% ▲  9.9 pts


Shareholders’ Fund: Shareholder’s fund stood at 41.4bn growing by 40% from 29.7bn in FY22 driven by profits in H1 and by fair value gains.


Return on Shareholder’s Equity:  Return on Shareholder’s Equity (ROE) improved by 33.8 percentage points from 7.7% prior year to 41.5% owing to the improved performance in the business. The operating performance of the group increased by 528% (14.8bn from 2.4bn LY) while average shareholder’s equity also grew 16% (35.6 from 30.7bn LY) owing to changes in fair value reserves. As a group, we remain committed to providing value to our shareholders.


Return on Asset:  Return on Assets (ROA) improved by 9.9 percentage points up to 12.0% from 2.1% when compared with prior year. The growth indicates efficient assets utilization towards improved PBT growth of 528% (14.8bn from 2.4bn LY). Average asset has also increased by 10% (123.0bn from 111.9bn LY) owing to improved asset base (near cash and insurance contracts assets) as we continue to consolidate on financial strength during the year.

Financial Highlights and Ratios


Income Statement Highlights

  • Insurance Revenue of N39.0bn, up 12% from N34.7bn in June 2022
  • Insurance Service Result of N6.2bn, up 39% from N4.5bn in June 2022
  • Net Investment and Other Income of N15.1bn, up 402% from N3.0bn in June 2022
  • Operating Expenses of N6.3bn, up 29% N4.9bn in June 2022
  • Profit before Tax of N14.8bn, up 528% from N2.4bn in June 2022
  • Profit after Tax of N13.1bn, up 582% from N1.9bn in June 2022


Statement of Financial Position Highlights

  • Total Assets of N140.8bn, up 34% from N105.2bn as of December 2022
  • Insurance Liabilities of N74.1bn, up 34% from N55.2bn as of December 2022
  • Group Shareholders’ Funds of N41.4bn, up 40% from N29.7bn as of December 2022
  • Insurance Shareholders’ Funds of N34.9bn, up 30% from N26.8bn as of December 2022


Key Ratios

  • Operating Expense Ratio of 16.1% (June 2022: 14.0%)
  • Underwriting Expense Ratio of 8.3% (June 2022: 7.8%)
  • Loss / Claims Ratio of 21.8% (June 2022: 24.3%)
  • Re-Insurance Cost Ratio of 24.1% (June 2022: 24.6%)
  • Return on Average Equity of 41.5% (June 2022: 7.4%)
  • Return on Average Asset of 12% (June 2022: 2.1%)
  • Earnings per Share of ₦1.43k (June 2022: ₦0.17k)



GROUP FY 22 – IFRS 17 (Restated) HY 23 YoY Change
Asset 105.2 bn 140.8 bn + 34%
Cash and cash equivalent 13.5 bn 19.0 bn + 41%
Investment securities 43.5 bn 50.9 bn + 17%
Loan and receivables 3.8 bn 5.0 bn + 32%
PPE & Intangible assets 3.5 bn 3.7 bn + 4%
Statutory dep., RI assets & other 40.9 bn 62.3 bn + 52%
o/w Claims Recoverables (Incl. IBNR) 0.7 bn 0.7 bn  – 0%
Liabilities 71.4 bn 95.1 bn + 33%
Insurance contract liabilities 55.2 bn 74.1 bn + 34%
o/w Outstanding Claims (Incl. IBNR) 39.6 bn 43.4 bn + 10%
o/w Unearned Premiums (P&C + health) 15.6 bn 30.7 bn + 97%
Investment contract liabilities 6.7 bn 6.2 bn  – 8%
o/w Life Savings 3.5 bn 3.0 bn  – 14%
o/w Life Investment Plan 2.5 bn 2.6 bn + 6%
o/w Bonus Life 0.7 bn 0.5 bn  – 31%
Reinsurance contract liabilities 1.7 bn 3.8 bn + 123%
Trade and other liabilities 6.9 bn 9.2 bn + 34%
Deferred tax liability 0.9 bn 1.8 bn + 111%
Total Equity 33.8 bn 45.7 bn + 35%



Key figures (in billion Naira, unless otherwise noted)

GROUP P&L  HY 2023  HY 2022  HY 23 vs. HY 22
Insurance revenue 39.0 bn 34.7 bn 12%
Insurance service Expenses (23.4 bn) (21.7 bn) 8%
Net expenses from reinsurance contracts held (9.4 bn) (8.5 bn) 10%
Insurance service result 6.2 bn 4.5 bn 39%
Interest Income calculated using effective interest rate method 3.1 bn 2.9 bn 5%
Net gain or loss on financial assets at fair value through profit or loss 11.6 bn (0.1 bn) na
Net credit impairment losses (0.0 bn) (0.0 bn) na
Profit on investment contracts 0.4 bn 0.1 bn 184%
Net Investment income 9.7 bn 3.0 bn 226%
Other income 5.5 bn 0.0 bn 11724%
Finance income/(expense) from insurance contract issued (0.3 bn) 0.0 bn na
Finance income/(expense) from reinsurance contract held 0.2 bn (0.2 bn) na
Expenses for marketing and administration (1.3 bn) (1.0 bn) 36%
Employee benefit expense (2.5 bn) (2.0 bn) 29%
Other operating expenses (2.4 bn) (1.9 bn) 25%
(Impairment)/writeback of other assets 0.0 bn 0.0 bn na
(Impairment)/writeback of premium receivables (0.0 bn) 0.0 bn na
Results of operating activities 14.9 bn 2.5 bn 502%
Finance cost (0.2 bn) (0.1 bn) 34%
Profit before tax 14.8 bn 2.4 bn 528%
Income tax expense (1.6 bn) (0.4 bn) 282%
Profit from discontinued operations (net of tax) 0.0 bn 0.0 bn na
Profit for the year 13.1 bn 1.9 bn 582%

Digital and E-Commerce Drive

We continued to digitize our customer’s journeys by introducing tools, technologies, and initiatives to improve our customer’s experience and collaboration with our partners. Key highlights of our digitization journey are seen below:

  • Policy Extension (Travel Insurance): We continued to optimize our Mobile app and website by introducing a new feature for the extension of travel policy insurance. Digital customers can now extend their travel insurance policies themselves using our existing digital platforms. This will facilitate the provision of seamless and easily accessible service to our clients.
  • Flexible Payment Initiative (Pay Monthly Car Insurance Initiative): We demonstrated our commitment to improving insurance affordability and access by partnering with a vendor to launch a pay monthly car insurance initiative. The monthly car insurance enables car owners to pay their comprehensive car insurance premiums in instalments by paying only 20% of the total amount upfront and spreading the remaining balance over a maximum period of ten (10) months. This initiative emphasizes AXA’s commitment to promoting financial inclusion by making access to insurance coverage more affordable and inclusive.
  • Embedded Health Insurance Product: As part of our commitment to provide accessible and affordable healthcare services to all, AXA Mansard Health has partnered with Airtel, the leading telecommunications brand in Nigeria, to launch an embedded insurance product that provides basic health insurance coverage. With the *141*44# short code, our Airtel customers across Nigeria can enjoy telemedicine, pharmacy benefits and hospitalization. Instead of buying the traditional data plan, our Airtel customers can now choose the data & health bundle plan and pay using their airtime.



AM Best Rating: AXA Mansard Insurance Plc’s Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” (Good) were affirmed by AM Best on March 10, 2023. The outlook for these Credit Ratings (ratings) is stable, reflecting AXA Mansard’s strong balance sheet, adequate operating performance, limited business profile, and appropriate enterprise risk management, as assessed by AM Best. The ratings also reflect rating enhancement from AXA Mansard’s ultimate parent, AXA S.A.


MARKETING TEAM marketingteam@axamansard.com
INVESTOR RELATIONS CONTACT investorrelations@axamansard.com


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