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Strong revenue growth underpins improved profitability as AXA Mansard Insurance plc. records 17% 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 third quarter ended September 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 17% to ₦61.3bn
    • Property & Casualty up 5% to ₦24.1bn
    • Life & Savings up 20% to ₦13.2bn
    • Health up 27% to ₦24bn
  • Gross Written Premiums up 23% to ₦71.3bn
    • Property & Casualty up 24% to ₦29.2bn
    • Life & Savings up 20% to ₦14.3bn
    • Health up 24% to ₦27.8bn


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 exclusion of commissions received and reinsurance claims recovered from assumed 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, “Our Q3 2023 results highlight our ability to consistently deliver strong and sustainable results even in the course of the challenging business environment. The growth in the topline was propelled by substantial increases in both renewals and new business in the P&C, Health and Life segments. Gross written premiums grew by 23% with insurance revenue growth of 17% from ₦52.5bn to ₦61.3bn.  As we enter the last quarter of the year, our focus remains on sustainable profitability of the business while prioritizing efficient underwriting processes, risk management as well as financial management to support our long-term strategic plan. “


Commenting on AXA Mansard’s financials at the end of the third quarter of 2023, Mr. Kunle Ahmed, the Chief Executive Officer, AXA Mansard Insurance, saidOur results for the nine months of 2023 demonstrate the benefits of our diversified business model, resilient balance sheet and our commitment to serving our customers. Profit before tax increased by 471% to N15.1bn. We achieved these results despite continued challenging macroeconomic conditions in the third quarter, with significant weaknesses of the Naira, high consumer prices and slow economic growth. We have made meaningful progress in formulating our strategic roadmap, which will provide the blueprint for our Growth, Transformation and Returns agenda. Over the last few months, as I engaged with our customers, colleagues, and other stakeholders, my confidence in our growth opportunities has been reaffirmed. We see opportunities to build stronger and better customer relationships in our businesses, forge strategic partnerships and be the solutions driven company of choice. “


Overview of Business Segments- HY’23

Key figures (in Naira billion, unless otherwise noted)
  Q3 YTD 2023 Q3 YTD 2022 %∆
Insurance revenues (Group) 61.30 bn 52.47 bn ▲    17%
o/w Property & Casualty 24.07 bn 22.83 bn ▼      5%
o/w Life & Savings 13.17 bn 10.96 bn ▲    20%
o/w Health 24.05 bn 18.97 bn ▲    27%


Insurance revenues improved by 17% YoY (61.3bn vs 52.5bn). Growth is driven from all lines of business: Health (+27%), L&S (+20%) and P&C (+5%) resulting from improved customer retention, the acquisition of new businesses as well as advancement of our distribution network.



Key figures (in Naira billion, unless otherwise noted)
  Q3 2023 Q3 2022 %∆
Gross Written Premiums (Group) 71.29 bn 57.89 bn ▲    23%
o/w Property & Casualty 29.19 bn 23.56 bn ▲    24%
o/w Life & Savings 14.25 bn 11.88 bn ▲    20%
o/w Health 27.85 bn 22.45 bn ▲    24%


Gross revenues: grew 23% YoY (71.3bn vs 57.9bn). Improved performance is due to our ability to acquire new businesses as well as our improving retention rates. Growth is spurred by Health (+24%), P&C (+24%) and L&S (+20%). P&C volumes performance is attributable to strong performance across key portfolios. Life volumes acceleration is driven by the impacts of individual life portfolio. Health volumes improves owing to increased premium from re-pricing and renewal of key businesses. Overall, our distribution network also plays a major role in driving volumes growth.


Property and Casualty

Key figures (in Naira billion, unless otherwise noted)
  Q3 YTD 2023 Q3 YTD 2022 %∆
Gross revenues (P&C) 29.19 bn 23.56 bn ▲           24%
o/w Fire 5.80 bn 3.16 bn ▲           84%
o/w Accident 2.40 bn 2.06 bn ▲           17%
o/w Motor 3.06 bn 2.14 bn ▲           43%
o/w Marine 0.67 bn 0.59 bn ▲           14%
o/w Engineering 0.70 bn 0.46 bn ▲           53%
o/w Oil & Energy 15.96 bn 13.43 bn ▲           19%
o/w Aviation 0.60 bn 1.73 bn ▼           65%


P&C grows 24% YoY due to strong performance across key portfolios. However, growth is slightly offset by YoY decline in volumes from Aviation (-65%) due to change in booking structure of key business. We experience growth in key portfolios owning to strong renewals, repricing and substantial new business. 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)
  Q3 YTD 2023 Q3 YTD 2022 %∆
Gross revenues (Group) 14.25 bn 11.88 bn ▲           20%
o/w Group Life 6.52 bn 6.99 bn ▼             7%
o/w Individual Life 7.74 bn 4.90 bn ▲           58%


L&S segment improves 20% YoY driven by growth in individual life business (+58%). Improved performance is however challenged by the 7% dip in group life due to reduced premiums and delayed renewal of a key business which is expected to be booked in the last quarter of the year. The individual life portfolio improves driven by the impact of the increase in customers onboarded as well as contributions from 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)
  Q3 YTD 2023 Q3 YTD 2022 %∆
Gross Revenues 1.20 bn 0.88 bn ▲           37%
Gross (AUMs) 176.36 bn 125.04 bn ▲           41%
o/w Own AuMs 64.24 bn 55.06 bn ▲           17%
o/w 3rd Party AuMs 112.12 bn 69.98 bn ▲           60%


Gross revenues improved 37% YoY, with higher management fees benefiting from improved 3rd party assets under management. 3rd party client count growing by 18% leading to a 60% growth in 3rd party AuMs and 41% growth in total AuMs.


Operating Performance

Key figures (in Naira billion, unless otherwise noted)
  Q3 YTD 2023 Q3 YTD 2022 %∆
Profit Before Tax (Group) 15.10 bn 2.4 bn ▲    471%
o/w Property & Casualty 7.59 bn 1.9 bn ▲    344%
o/w Life & Savings 1.59 bn 1.8 bn ▼    17%
o/w Health 4.25 bn (0.58 bn) na
o/w Asset Mgt. & APD 1.66 bn (0.40 bn) na


Overall, PBT significantly improved by 471% YoY owing to 344% growth in P&C profits and a significant improvement in the health business though life dips by 17%. Growth in P&C is attributable to improved revenues, overall underwriting performance as well as fx gains. The dip in the life business is driven by increased claims experienced during the period compared to last year which is partly offset by reduced underwriting expenses and higher investment margins. The health business continues to deliver strong growth and improvement at 4.25bn owing to higher volumes, improved claims management and operational efficiency. In addition, the APD business delivered significant improvement in profit owning to fair value and foreign exchange gains.

Impact of FX gains on the overall PBT for the group at the end of Q3 2023 was ₦10.1b and excluding this from the performance, PBT would still have grown by 88% YoY.

Key figures (in Naira billion, unless otherwise noted)
  Q3 YTD 2023 FY 2022 %∆
Total Assets 133.45 bn 105.15 bn ▲           27%
Total Liability 91.60 bn 71.35 bn ▲           28%
Total Equity 41.85 bn 33.80 bn ▲           24%
o/w Shareholders’ Fund 37.44 bn 29.69 bn ▲           26%


Total Asset:  Assets grew by 27% to 133.45bn driven mainly by 16% growth in financial assets, which constitutes 40% of total assets.  Asset size also increases owing to growth in reinsurance assets (65%) which indicates an expansion in the group and the risk it underwrites.


Total Liability:  Liability increased by 28% vs FY 2022. This is attributable to growth in insurance contract liabilities (29%), which constitutes 77% of total liabilities.  


Total Equity:  Equity grows 24% vs FY 2022. Growth in Equity is underpinned by the 26% growth in shareholder’s fund. Shareholder’s fund stood at 37.4bn growing by 26% from 29.7bn in FY22 driven by profits in Q3 YTD. Therefore, improvement in retained earnings remains a key driver of increased shareholders’ fund.

Financial Position Metrics
  Q3 2023 Q3 2022 %∆
Return on Average Shareholder’s Equity 33.2% 4.5% ▲28.7 pts
Return on Average Assets 12.7% 2.5% ▲10.2 pts


Return on Shareholder’s EquityReturn on Shareholder’s Equity (ROE) improved by 28.7 percentage points (from 4.5% prior year to 33.2%) owing to the improved operating performance of the group. Operating performance improves by 471% (15.1bn from 2.6bn LY) while average shareholder’s equity also grew 13% (37.8 from 33.5bn 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 10.2 percentage points up to 12.7 when compared with prior year. The growth indicates efficient asset utilization towards improved profitability growth of 471% (15.1bn from 2.6bn LY). Average asset has also increased by 12% (119.3bn from 106.2bn LY) owing to improved asset base (near cash and insurance contracts assets) as we continue to consolidate on financial strength during the year.

Key Ratios


Group Financials: Ratios Sep-23 Sep-22 ∆ (%)
Operating Expense Ratio 15.8% 14.3% 1.6 pts
Underwriting Expense Ratio 8.7% 8.0% 0.7 pts
Loss Ratio 53.3% 48.1% 5.2 pts
Reinsurance Expense Ratio 22.0% 28.9% -6.8 pts
Earnings Per Share 136 17 701%





Summary Financial Statements


Key figures (in billion Naira, unless otherwise noted)

Income Statement – Group  Q3 YTD 2023  Q3 YTD 2022  YoY Growth
Insurance revenue 61.30 bn 52.47 bn 17%
Insurance service Expenses (38.72 bn) (31.02 bn) 25%
Net expenses from reinsurance contracts held (13.50 bn) (15.14 bn) -11%
Insurance service result 9.08 bn 6.32 bn 44%
Interest Income calculated using effective interest rate method 4.77 bn 4.27 bn 12%
Net gain or loss on financial assets at fair value through profit or loss 10.59 bn (0.37 bn) na
Net credit impairment losses (0.01 bn) (0.02 bn) na
Profit on investment contracts 0.63 bn 0.23 bn 179%
Net Investment income 15.98 bn 4.10 bn 289%
Other income 0.22 bn 0.07 bn 202%
Finance income/(expense) from insurance contract issued (0.44 bn) (0.08 bn) na
Finance income/(expense) from reinsurance contract held 0.25 bn (0.10 bn) na
Expenses for marketing and administration (2.14 bn) (1.24 bn) 73%
Employee benefit expense (3.68 bn) (3.20 bn) 15%
Other operating expenses (3.78 bn) (3.05 bn) 24%
(Impairment)/writeback of other assets 0.00 bn 0.00 bn na
(Impairment)/writeback of premium receivables (0.11 bn) 0.00 bn na
Results of operating activities 15.38 bn 2.82 bn 444%
Finance cost (0.28 bn) (0.18 bn) 55%
Profit before tax 15.10 bn 2.65 bn 471%
Income tax expense (2.54 bn) (1.15 bn) 122%
Profit from discontinued operations (net of tax) 0.00 bn 0.00 bn na
Profit for the year 12.56 bn 1.50 bn 738%



Statement of Financial Position – Group FY 22 – IFRS 17 (Restated) Q3 23 YoY Change
Asset 105.15 bn 133.45 bn + 27%
Cash and cash equivalent 13.47 bn 18.24 bn + 35%
Investment securities 43.47 bn 50.97 bn + 17%
Loan and receivables 3.77 bn 4.21 bn + 12%
PPE & Intangible assets 3.55 bn 4.06 bn + 15%
Statutory dep., RI assets & other 40.90 bn 55.96 bn + 37%
o/w Claims Recoverable (Incl. IBNR) 0.33 bn 0.75 bn + 128%
Liabilities 71.35 bn 91.60 bn + 28%
Insurance contract liabilities 55.17 bn 70.82 bn + 28%
o/w Outstanding Claims (Incl. IBNR) 39.60 bn 45.72 bn + 15%
o/w Unearned Premiums (P&C + health) 15.57 bn 25.10 bn + 61%
Investment contract liabilities 6.72 bn 5.90 bn  – 12%
o/w Life Savings 3.51 bn 2.90 bn  – 18%
o/w Life Investment Plan 2.51 bn 2.54 bn + 1%
o/w Bonus Life 0.70 bn 0.46 bn  – 34%
Reinsurance contract liabilities 1.69 bn 3.06 bn + 80%
Trade and other liabilities 6.92 bn 9.69 bn + 40%
Deferred tax liability 0.86 bn 2.14 bn + 150%
Total Equity 33.80 bn 41.85 bn + 24%


Digital and E-Commerce Drive

Product enhancement and customer experience continue to be a major focus for us. In Q3 we focused on implementing pipeline initiatives aimed at driving customer inclusion, better customer experience, and satisfaction. Initiatives driven and implemented are highlighted below:

  • Dollar Bond Fund (Investment) – The fund was launched on the transactional website to provide our customers with more viable investment options and an opportunity for portfolio diversification. This supports our commitment to customer-first which elaborates on our drive to provide products that support customer financial goals and provide protection (in this case currency risk).
  • Flexible Payment Initiative for Health Insurance: Following the successful launch and adoption of the Pay Monthly Car Insurance Initiative, we have extended the feature to our Health Insurance Products. Healthcare remains inaccessible to a large percentage of Nigerians and the financing initiative aims to drive more accessibility, affordability, and care. This feature will help customers access and enjoy health insurance while paying monthly. This initiative emphasizes AXA’s commitment to promoting financial inclusion by making access to insurance coverage more affordable and inclusive. More on its features and benefits will be provided after launch.
  • Health Top-Up: This initiative aims to help enrollees upgrade their existing health plans and hospitals to a higher plan or hospital at a top-up fee. We understand employees might desire to upgrade the plan provided by their employers to enable them to access more care and benefits and this option provides them the avenue to initiate the upgrade. The goal of this initiative is to give customers the opportunity to access better health care and have access to hospitals of their choice.



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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