AXA Mansard Insurance Plc (“Mansard” or “the Company”) is a leading Nigerian financial services provider with key operations in insurance, health maintenance, and asset and investment management. As part of the global AXA Group — a powerhouse in insurance and asset management with 166,000 employees serving over 107 million clients in 64 countries — Mansard benefits from international expertise and operational backing.
Listed on the Nigerian Exchange Group (NGX) since November 2009, AXA Mansard has consistently remained one of the most capitalized companies within the insurance sector. This reflects the company’s market stability and longstanding reputation for reliability.
Corporate Structure and Ownership
The company operates through two wholly owned subsidiaries:
- AXA Mansard Investments Limited – Offers portfolio and asset management services to individuals and corporate clients.
- AXA Mansard Health Limited – Provides healthcare administration services under the regulation of the National Health Insurance Scheme (NHIS).
Following AXA Group’s full acquisition of Assur Africa Holdings in December 2024 — which previously held a 77% stake in Mansard — AXA now directly owns 76.48% of the company. This solidifies AXA’s position as one of the largest players in Nigeria’s insurance space. The remaining 23.52% of shares are held by local institutional and retail investors.
Nigeria’s Insurance Industry Outlook
Despite macroeconomic headwinds, the Nigerian insurance industry is forecasted to grow by 20% to 25% in revenue by 2025, driven by the rising awareness and acceptance of insurance products. However, insurance penetration remains low — estimated at just 0.65% of GDP in 2024 — due to the sector’s historical underdevelopment.
Recent reforms are expected to change this trajectory. The passage of the Nigerian Insurance Industry Reform Bill in late 2024 is seen as a turning point. Key provisions include:
- Increased minimum capital requirements across all categories of insurance firms
- Implementation of risk-based supervision
- Enhanced consumer protection
- A modernized regulatory framework
These changes are set to improve capital adequacy, underwriting capacity, and investor confidence in the sector. The Federal Government’s N23.44 trillion allocation to infrastructure in the 2025 budget is also expected to positively impact the insurance market.
Recapitalization: New Requirements
The reform bill proposes new capital thresholds:
- Life insurance: from N2 billion to N10 billion
- General business: from N3 billion to N15 billion
- Composite insurance: from N5 billion to N25 billion
- Reinsurers: from N10 billion to N35 billion
Once signed into law, these thresholds will enable Nigerian insurers to handle large-ticket risks that currently require offshore underwriting.
FY 2024 Financial Performance
AXA Mansard posted a 59.1% year-on-year growth in Gross Revenue (GRV) to N131.67 billion, while Profit After Tax (PAT) surged 116.6% y/y to N24.87 billion, reflecting strong performance across core business lines.
Revenue Breakdown:
- Health: +45.5% y/y (35.9% of GRV)
- Oil & Gas: +115.9% y/y (28.5%)
- Fire: +77.2% y/y (9.6%)
- Savings: +49.3% y/y (9.7%)
These four segments collectively accounted for 83.6% of total revenue.
However, rising claims led to a 62.4% y/y increase in insurance service expenses and 72.3% y/y in reinsurance costs, which compressed insurance income margins from 13.6% (FY ’23) to 10.4% (FY ’24).
Operating Expenses and Finance Costs:
Operating expenses (OPEX) increased by 37.7% y/y to N19.55 billion, driven by:
- Staff costs: +29.1%
- IT expenses: +139%
- Diesel costs: +83.4%
Nonetheless, due to revenue growth, the cost-to-income ratio improved to 0.61%, down from 0.84% in the previous year. Net finance costs also declined to N591.93 million, following a 47.5% reduction in borrowing costs.
Bottom Line:
- Pre-tax profit rose by 100.9% y/y to N31.69 billion
- PAT increased by 91.0% y/y to N24.87 billion
- Earnings per share (EPS) grew to N2.76, up from N1.28 in FY ’23
The company declared a final dividend of N0.45 per share, translating to a 4.71% yield based on a share price of N9.55 as of June 20, 2025.
Balance Sheet Highlights
- Total Assets: N193.61 billion (+37.2% y/y)
- Liabilities: N140.73 billion (+41.1%)
- Shareholders’ Equity: N47.11 billion (+28.2%)
Asset growth was driven primarily by:
- Investment securities: +74.3%
- Investment properties: +52.2%
Q1 2025 (3M ’25) Unaudited Results
In the first quarter of 2025, AXA Mansard posted a 26.7% y/y growth in GRV to N40.33 billion, with continued strength in its health division (+51.6% y/y), which contributed 37.9% to revenue.
However, investment income dropped by 59.4% y/y to N5.85 billion due to stabilization in FX markets, affecting returns on dollar-based instruments.
- OPEX increased by 24.5% y/y to N5.32 billion
- Pre-tax profit fell 61.2% y/y to N6.16 billion
- PAT dropped 51.2% y/y to N6.17 billion
- Q1 EPS: N0.69, down from N1.40 in Q1 ’24
Despite the dip, management remains confident in sustained revenue growth through strong retail and commercial lines amid economic reforms.
Investment Case and Valuation
AXA Mansard’s diversified business model enables synergy across operations, efficient capital deployment, and resilience against market shocks. The company continues to optimize financial performance while offering compelling shareholder returns.
Using sum-of-the-parts (SOTP) and relative valuation models, a target price (TP) of N12.25 per share has been projected, reflecting:
- FY ’24 Return on Equity (ROE) of 52.8%
- Price-to-Earnings (P/E) ratio of 3.5x
- Solid capital structure and liquidity
This implies a 28.3% upside from the current market price of N9.55. Based on these indicators, AXA Mansard carries a “BUY” rating, with the projection covering a 9-month horizon up to Q1 2026.
Conclusion
AXA Mansard continues to reinforce its leadership in Nigeria’s evolving insurance industry. Backed by global expertise, a robust capital base, and a forward-looking strategy, the company is well positioned to harness opportunities in 2025 and beyond.
