AXA Mansard projects N5.13bn Q3 profit on strong insurance revenue growth

AXA Mansard Insurance Plc has projected a profit after tax of N5.13 billion for the third quarter ending September 30, 2026, driven by robust insurance revenue and strong investment income despite rising operating costs and reinsurance expenses.

The insurer’s earnings forecast submitted to the Nigerian Exchange showed that insurance revenue is expected to reach N139.73 billion during the period, underscoring continued growth in its core underwriting business.

According to the forecast, insurance service expenses are estimated at N96.53 billion, while net expenses from reinsurance contracts held are projected at N29.28 billion. These costs are expected to reduce the company’s insurance service result to N13.93 billion.

However, AXA Mansard anticipates a significant contribution from investment activities, with net investment and other income forecast at N11.85 billion, helping to bolster overall earnings performance.

The company expects profit before tax to stand at N6.41 billion, while taxation of N1.28 billion is projected to leave a net profit of N5.13 billion for the quarter.

Industry analysts said the forecast reflects the growing importance of investment income in supporting profitability across Nigeria’s insurance sector, particularly amid inflationary pressures and rising claims costs.

Despite the positive earnings outlook, the forecast indicates pressure on cash flows. AXA Mansard expects net cash used in operating activities of N7.19 billion, partly offset by N6.11 billion generated from investing activities.

READ ALSO: Senate Committee mulls amendment of Fiscal Responsibility Act

Consequently, cash and cash equivalents are projected to decline by N1.08 billion during the period, falling from N39.56 billion at the beginning of the quarter to N38.48 billion at the end.

Market observers noted that the insurer’s ability to sustain premium growth while maintaining profitability will remain a key focus for investors as competition intensifies within the insurance industry.

The earnings projection comes as insurance companies continue to navigate a challenging economic environment marked by high inflation, currency volatility and evolving regulatory requirements, while seeking to deepen insurance penetration and strengthen returns to shareholders.