AXA Mansard gross written premiums up 21.7%

AXA Mansard Insurance has reported a 21% rise in half-year gross written premiums, showcasing strong growth in its business. However, the insurer also recorded a notable 36.5% drop in profit after tax for the reporting period. Ngozi Ola-Isreal, the Chief Financial Officer of AXA Mansard, recently discussed these financial results in an exclusive interview with CNBC Africa, shedding light on the factors influencing the company's performance. Ola-Isreal highlighted key areas of growth, challenges faced, and strategic initiatives to navigate the evolving insurance landscape. One of the significant points of discussion in the interview was the higher claims observed in the health business, particularly in the HMO segment. Ola-Isreal attributed this increase to the changing dynamics driven by the ongoing COVID-19 pandemic. She mentioned that compared to the previous year when the fear of the virus led to reduced hospital visits, the current period saw a surge in healthcare utilization as people became more comfortable seeking medical treatment. This uptick in hospital visits resulted in a higher frequency of claims, impacting the overall claims ratio. Despite this trend, Ola-Isreal noted that the combined ratio remained below 90%, indicating a healthy position for the company. Another key highlight was the robust growth in the property and casualty (PNC) segment, with a notable 33% expansion. Ola-Isreal elaborated on the specific areas driving this growth, including a 24% increase in the retail PNC space and a 34% growth in the commercial PNC segment. The CFO attributed this growth to factors such as rising motor insurance sales, boosted by increased movement as pandemic restrictions eased. Additionally, the company's focus on customer retention and acquisition in the commercial line contributed to the overall revenue growth. These positive developments in key business lines underscored AXA Mansard's ability to capitalize on market opportunities and drive sustainable growth. Furthermore, Ola-Isreal discussed the growth prospects for the company's subsidiaries, highlighting the performance of the health and asset management businesses. She mentioned a recent partnership to offer mobile health insurance via USSD, signaling a strategic move to tap into new markets and enhance the retail health business. The asset management arm also showed promising growth in assets under management (AUM), despite market challenges. These initiatives reflect AXA Mansard's commitment to diversification and innovation to drive long-term value for stakeholders. On the investment front, Ola-Isreal acknowledged a drop in investment income, primarily driven by fair value losses on financial assets such as bonds. Despite this decline, she expressed optimism for the second half of the year, anticipating a rebound in investment income as market conditions improve. The CFO emphasized the company's focus on leveraging market opportunities and optimizing investment strategies to enhance returns and mitigate risks. In addressing the topic of recapitalization, Ola-Isreal highlighted AXA Mansard's proactive approach to capital management. She mentioned a recent bonus issuance that bolstered the company's share capital to 18 billion, aligning with regulatory requirements. While the industry has been grappling with capitalization challenges, AXA Mansard's strategic initiatives have positioned the company well to meet regulatory standards and support business expansion. Lastly, the discussion touched on risk management and reinsurance strategy in light of evolving market dynamics. Ola-Isreal emphasized the importance of a robust reinsurance framework to manage exposure effectively and safeguard against potential large claims. By setting specific limits for different lines of business and leveraging reinsurance covers, AXA Mansard has successfully navigated challenging periods, including the impact of the pandemic on insurance claims. As AXA Mansard continues to drive growth and navigate market uncertainties, the insights shared by CFO Ngozi Ola-Isreal offer valuable perspectives on the company's financial performance and strategic direction amidst a dynamic operating environment.