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AXA Mansard Insurance Plc has announced a 22% increase in its insurance revenue, reaching ₦160.56 billion for the year ended December 31, 2025. Despite macroeconomic challenges such as inflationary pressures and foreign exchange volatility, the insurer demonstrated sustained growth across its core segments.

The company, part of the AXA Group, disclosed these audited financial results in Lagos on Monday. The results show broad-based expansion in Property & Casualty, Life & Savings, and Health insurance lines.

Gross Written Premiums (GWP) jumped by 23% to ₦170.87 billion from ₦138.55 billion in 2024. This growth was driven by improved customer retention, new business acquisitions, and expansion of the distribution network.

A segment-wise breakdown reveals that Property & Casualty revenue grew by 11% to ₦68.48 billion, Life & Savings increased by 14% to ₦25.77 billion, while the Health segment recorded the highest growth, surging by 40% to ₦66.32 billion.

In terms of gross premiums, Property & Casualty climbed 20% to ₦73.42 billion, Life & Savings rose 15% to ₦26.84 billion, and Health premiums expanded significantly by 31% to ₦70.60 billion.

Commenting on the results, Chief Financial Officer Ngozi Ola-Israel noted, “The company’s performance reflects strong execution and resilience across its diversified portfolio.” She added that although Profit Before Tax (PBT) declined sharply by 81% to ₦6.12 billion from ₦31.69 billion in 2024, this was largely due to the absence of significant foreign exchange gains recorded in the prior year.

“In FY 2024, earnings were boosted by ₦27 billion in FX gains, compared to a ₦1 billion FX loss in 2025. Adjusting for this non-recurring impact, underlying profit would have grown by 50 per cent year-on-year,” she explained.

She further stated that the firm maintained a solid financial position supported by strong premium growth, prudent capital management, and adequate liquidity buffers, even amid rising claims and inflationary pressures that affected margins.

Chief Executive Officer Kunle Ahmed highlighted the company’s ability to deliver strong topline growth and stable underlying earnings despite cost pressures and global economic uncertainties. He added that the 2025 audited results position AXA Mansard to surpass the new minimum capital requirements recently introduced under Nigeria’s insurance reform framework.

“In line with the new capital thresholds, our current financial position comfortably exceeds the ₦15 billion requirement for non-life business and ₦10 billion for life operations. To further strengthen capital buffers, the board has decided not to propose dividend payments for the 2025 financial year,” Ahmed stated.

Industry analysts observe that AXA Mansard’s decision to retain earnings aligns with a broader trend among Nigerian insurers preparing for upcoming recapitalization mandates that could reshape industry competitiveness.

The company’s Insurance Service Result increased by 9%, reaching ₦14.87 billion, mainly driven by a 65% surge in earnings from the Property & Casualty segment. However, performance in the Life & Savings and Health segments declined by 4% and 42%, respectively, due to higher technical reserves and increased claims severity.

Operating expenses also rose, with insurance service expenses increasing by 32%, reflecting elevated claims across key portfolios, especially in general accident and aviation insurance.

Despite profitability pressures, AXA Mansard’s balance sheet remains robust. Total assets grew by 18% to ₦227.94 billion, and shareholders’ funds increased by 11% to ₦52.3 billion, reinforcing its capital strength.

However, Profit After Tax dropped significantly by 98% to ₦0.62 billion, impacted by FX-related effects and changes in tax regulations, including an increase in capital gains tax from 10% to 30%, which resulted in a one-off deferred tax adjustment.

From an industry perspective, analysts note that the company’s performance reflects broader trends in Nigeria’s insurance sector, where premium growth remains strong but profitability faces headwinds from macroeconomic factors, regulatory changes, and claims inflation.

The gap between revenue growth and bottom-line performance highlights the sector’s ongoing transition under IFRS 17 reporting standards, emphasizing underwriting discipline and earnings quality over one-off gains.

Experts also highlight the rapid growth of the health insurance segment, driven by rising healthcare costs, increased awareness, and corporate demand for employee health coverage.

Looking ahead, AXA Mansard plans to focus on strengthening underwriting discipline, improving operational efficiency, and deepening digital capabilities to sustain growth. Ahmed expressed optimism that as macroeconomic conditions stabilize and FX volatility subsides, the company’s underlying earnings will become more evident.

“With a strong balance sheet, disciplined execution, and clear strategic priorities, we are well positioned to improve profitability and deliver long-term value to shareholders,” he said.

Market analysts believe insurers that effectively balance growth, cost control, capital adequacy, and innovation will be better positioned to thrive amid ongoing industry consolidation and regulatory reforms.