November 09, (THEWILL) — AXA Mansard Insurance Plc, a member of the global AXA Group, has reported a sharp decline in profitability for the first half of 2025, even as its insurance revenues rose strongly across all business segments.
According to its half-year (H1) 2025 financial results released to the Nigerian Exchange (NGX), profit before tax fell 73% year-on-year to ₦7.73 billion, from ₦28.57 billion in the same period of 2024. The insurer attributed the drop mainly to the absence of substantial foreign exchange gains that had significantly boosted last year’s earnings.
However, the company noted that excluding those one-off FX gains, its underlying profit before tax would have grown 72%, reflecting a much stronger operational performance than the headline numbers suggest.
Strong Top-Line Performance
Despite profit pressures, AXA Mansard maintained solid top-line momentum. Insurance revenue grew by 24% to ₦81.15 billion, up from ₦65.62 billion in H1 2024, while Gross Written Premiums (GWP) increased 23% to ₦115.31 billion from ₦93.97 billion in the prior-year period.
All business lines recorded positive growth: Property and Casualty rose 10% to ₦35.43 billion, Life and Savings advanced 17% to ₦14.15 billion, and Health Insurance surged 48% to ₦31.58 billion. The health division continued to be a major growth driver, contributing nearly 40% of group insurance revenues.
Segmental Profitability Mixed
While revenue growth remained broad-based, profitability varied across business segments. The Property and Casualty segment posted ₦3.24 billion in profit, down 78% from ₦14.59 billion a year earlier, due largely to higher claims and operational costs.
Life and Savings profit rose 168% to ₦0.93 billion, supported by increased policy uptake. The Health segment recorded ₦2.48 billion in profit, a 71% decline from ₦8.67 billion, while Asset Management and AXA Pensions Division profit fell 78% to ₦1.09 billion.
The company said the declines in Health and P&C profits reflected elevated claims ratios, inflationary pressures, and continued currency volatility in the Nigerian market.
Balance Sheet Growth and Returns
AXA Mansard’s total assets increased by 21% to ₦234.02 billion, compared with ₦193.61 billion at the end of 2024. Shareholders’ funds also rose 19% to ₦62.74 billion. Despite the expansion, Return on Average Equity (ROAE) declined sharply to 11.8% from 47.3% in H1 2024. On an underlying basis, however, ROAE improved to 9.3% from 6.7%, indicating more sustainable core profitability after adjusting for FX effects.
Management Outlook
The insurer said its fundamentals remain strong, driven by a diversified business portfolio and ongoing investments in operational efficiency, digital transformation, and customer experience.
“We continue to focus on efficiency, customer-centric innovation, and sustainable growth,” the company stated. “Our solid revenue performance reflects resilience amid macroeconomic challenges and distortions from last year’s FX windfall.”
Preliminary figures for the nine months ended September 2025 indicate that profit weakness persisted into the third quarter, with market sources estimating an 82% year-on-year decline in pre-tax profit to around ₦6 billion.
While the company remains optimistic about AXA Mansard’s long-term prospects, citing strong revenue momentum in health and life insurance, analysts warn that earnings recovery will depend on exchange rate stability, prudent cost management, and improved underwriting margins.
Ogochukwu Onwaeze
