AXA Mansard grows insurance revenue by 22% to ₦160.6bn, navigates profit dip amid FX volatility
By Rosemary Iwunze
LAGOS—AXA Mansard Insurance Plc announced a 22% increase in insurance revenues, reaching ₦160.56 billion for the fiscal year ending December 31, 2025. This growth signals the company’s resilience in a challenging macroeconomic landscape characterized by inflation and foreign exchange fluctuations.
The insurer, part of the AXA Group, disclosed its audited financial results on Monday, revealing broad expansion across its main business sectors, including Property & Casualty, Life & Savings, and Health.
Gross Written Premiums (GWP) rose 23% to ₦170.87 billion, up from ₦138.55 billion in 2024. The growth was attributed to improved customer retention, the acquisition of new business, and an expanded distribution network.
In more detailed terms, revenues in the Property & Casualty sector grew by 11% to ₦68.48 billion, while Life & Savings increased by 14% to ₦25.77 billion. The Health segment recorded the most significant growth, rising 40% to ₦66.32 billion.
GWP also experienced positive trends across segments: Property & Casualty premiums climbed 20% to ₦73.42 billion, Life & Savings grew 15% to ₦26.84 billion, and Health premiums surged 31% to ₦70.60 billion.
Chief Financial Officer Ngozi Ola-Israel commented on the results, stating that they reflect strong execution and resilience throughout the company’s diversified portfolio. She noted that Profit Before Tax (PBT) fell sharply by 81% to ₦6.12 billion, down from ₦31.69 billion in 2024. The decline was mainly due to the absence of substantial foreign exchange gains, which had inflated earnings the previous year.
“In FY 2024, we benefited from ₦27 billion in FX gains, whereas 2025 saw a ₦1 billion loss in this area. Adjusted for this one-time impact, our underlying profit would have increased by 50% year-on-year,” Ola-Israel explained.
She emphasized that despite rising claims and inflation impacting margins, the Group maintains a solid financial position, bolstered by strong premium growth, prudent capital management, and adequate liquidity.
Chief Executive Officer Kunle Ahmed affirmed that the company demonstrated robust topline growth and stable underlying earnings amid rising cost pressures and global uncertainties. He indicated that AXA Mansard’s 2025 results position it well to exceed the new minimum capital requirements set forth in Nigeria’s insurance reform.
“Our financial standing exceeds the ₦15 billion requirement for non-life businesses and ₦10 billion for life operations. To further bolster our capital buffers, the board has opted not to propose dividends for the 2025 financial year,” Ahmed said.
Industry analysts suggest that AXA Mansard’s decision to retain earnings reflects a broader trend among Nigerian insurers preparing for upcoming recapitalization requirements.
Additionally, the firm’s Insurance Service Result increased by 9% to ₦14.87 billion, driven mainly by a 65% rise in earnings from the Property & Casualty segment. However, performance was tempered in the Life & Savings and Health segments, which saw declines of 4% and 42%, respectively, due to higher technical reserves and increased claims.
Operating expenses rose during the period, with insurance service expenses increasing by 32% as the industry faced elevated claims, particularly in general accident and aviation sectors.
Despite the pressures on profitability, AXA Mansard’s balance sheet remained strong, with total assets growing by 18% to ₦227.94 billion and shareholders’ funds rising by 11% to ₦52.3 billion.
Profit After Tax saw a significant drop of 98% to ₦0.62 billion, influenced not only by currency fluctuations but also by changes in tax regulations, including an increase in capital gains tax from 10% to 30%, which resulted in a one-off deferred tax adjustment.
Analysts assert that AXA Mansard’s performance reflects broader trends within Nigeria’s insurance sector, where premium growth remains strong but profitability is increasingly affected by macroeconomic challenges and regulatory changes.
The disparity between rising revenues and declining profits illustrates the sector’s ongoing adjustment under IFRS 17 standards, which prioritize underwriting discipline and the quality of earnings over one-off gains.
Experts highlight the rapid growth of the health insurance segment as a key driver, propelled by rising healthcare costs and increased corporate demand for employee health coverage.
Looking forward, AXA Mansard plans to enhance underwriting discipline, improve operational efficiency, and deepen its digital capabilities to ensure sustainable growth. Ahmed expressed optimism that as macroeconomic conditions stabilize and currency volatility diminishes, the company’s strength in underlying earnings will become clearer.
“With a solid balance sheet and disciplined strategic execution, we are well-positioned to enhance profitability and deliver long-term value to shareholders,” he said.
Market analysts believe that insurers who successfully balance growth with cost control, capital adequacy, and innovation will emerge stronger as the industry enters a new phase of consolidation and regulatory scrutiny.
