AXA Mansard Insurance Reports 22% Revenue Increase Despite Economic Challenges
AXA Mansard Insurance Plc reported a 22% increase in insurance revenues, reaching ₦160.56 billion for the fiscal year ending December 31, 2025. This growth is noteworthy amidst economic challenges such as inflation and foreign exchange volatility. The company, part of the AXA Group, expanded across its primary sectors: Property & Casualty, Life & Savings, and Health.
Gross Written Premiums (GWP) surged by 23% to ₦170.87 billion, rising from ₦138.55 billion the previous year. This growth was fueled by improved customer retention, new business acquisition, and enhanced distribution channels. Notably, Property & Casualty revenues grew by 11% to ₦68.48 billion, Life & Savings by 14% to ₦25.77 billion, and Health by a significant 40% to ₦66.32 billion.
Financial Performance Under Pressure
Chief Financial Officer Ngozi Ola-Israel discussed the firm's resilient performance despite an 81% decline in Profit Before Tax (PBT), which decreased to ₦6.12 billion from ₦31.69 billion in 2024. This reduction was primarily due to the absence of substantial foreign exchange gains, which previously amounted to ₦27 billion. Excluding this factor, profits would have risen 50% year-over-year.
CEO Kunle Ahmed expressed confidence in the company's strong growth and capacity to maintain stable earnings despite economic uncertainties. The 2025 financial results exceed the new capital thresholds established by Nigeria's insurance reform, with the company surpassing the ₦15 billion requirement for non-life business and ₦10 billion for life operations. Consequently, no dividend payment will be proposed to conserve capital.
Strategic Focus Amid Industry Changes
Market analysts interpret AXA Mansard's focus on retaining earnings as part of a broader strategy among Nigerian insurers preparing for recapitalization requirements. The Insurance Service Result experienced a 9% increase to ₦14.87 billion, primarily driven by a 65% earnings surge in the Property & Casualty segment. Nonetheless, Life & Savings and Health segments faced declines due to higher technical reserves and claims severity.
Despite a rise in operational costs and insurance service expenses by 32%, AXA Mansard's financial stability remained robust with an 18% asset growth to ₦227.94 billion and an 11% increase in shareholders' funds to ₦52.3 billion. However, Profit After Tax dropped by 98% to ₦0.62 billion, influenced by foreign exchange factors and recent tax regulation changes affecting deferred tax.
Future Prospects and Industry Trends
AXA Mansard plans to enhance underwriting discipline and operational efficiency while expanding digital capabilities to ensure sustainable growth. Ahmed is optimistic that stabilizing macroeconomic conditions and reduced FX volatility will highlight the company's underlying financial strength. As the industry faces consolidation and regulatory challenges, insurers managing growth, cost control, and capital adequacy are poised to thrive.