By Alex C
Mansard Insurance Plc, provider of risk and investment management services, has recorded a 31% growth in net profit for the year ended December 31, 2013. A peep into the financial Highlights of its audited report reveals that Profit After Tax stood at N2.09billion, compared to N1.60billion in December 2012- an increase of 31% attributable to tax write back.
Gross premium written increased by 9 percent, from N12.44 billion in December 2012 to N13.59billion for the year ended December 2013 although its growth was stifled by regulatory enforcement of No Premium, No Cover regulation. This is a section of the 2003 Insurance Act that stipulates that Premiums must be paid for before an insurer can incept cover. This regulation was enforced by the regulator (NAICOM) with effect from January 1, 2013.
Net Premium Income grew by 6%, from N7.10 billion in December 2012 to N7.53billion in December 2013 primarily due to efficient underwriting capacity. Investment Income and other operating income increased by 58%, from N236billion in December 2012 to N3.73 billion in December 2013 as a result of fair value gains on financial assets and increase in rental income.
While the company’s Profit Before Tax (PBT) declined by 9%, from N2.17billion in December 2012 to N1.99billion in December 2013, this decline in its PBT is as a result a 13% decline in underwriting profit (occasioned by higher claims due to large Oil &Gas claims) and a 34% increase in operating expenses (due to retail expansion costs and write-off of prior year receivables of a large Public Sector Group Life account)
The company’s reinsurance and co-insurance recoverable increased by 59%, from N1.79billion in December 2012 to N2.85 billion in December 2013 as it was driven by prepaid reinsurance assets. Furthermore, total assets of the company grew by 13%, from N32.11 billion in December 2012 to N36.13billion in December 2013. Its insurance liabilities increased by 31%, from N5.87 billion in December 2012 to N7.69billion in December 2013 due to unearned premium and increase in life fund.
Commenting on the 2013 results, Chief Client Officer, Mr Tosin Runsewe said the company achieved a 31% increase in its net earnings as a result of significant growth in the income from its increasingly diversified investment base.
According to Runsewe “We achieved growth in a rather difficult year where the industry experienced a decline in growth rate. Growth was stifled by the ‘No Premium, No Cover’ regulation. The institutional end of the market was most affected. On the other hand, we had a much better cash flow into the business reflecting our compliance with the regulation.”
Mrs. Rashidat Adebisi, Chief Financial Officer noted that it was the first time since the company’s renaissance that it would record a single digit growth.
“We are unwearied because we are seeing growing numbers in Mansard’s penetration of a resilient market. We will continue to work enthusiastically to deliver on our assurance of financial security to our customers. We also find the 2013 financial year interesting as we saw retail business being a major driver of both revenue and profit. We find this very exciting and rewarding as we seem to have started reaping the rewards of our significant investments in retail,” Adebisi hinted.
With the company planning to expand its operations within the country, its distribution network stands at 14 Mansard Welcome Centres and 2 Branches in Abuja and Port Harcourt. The company intends to open more Mansard Welcome Centres across the country to make its services more accessible to both retail and corporate ends of the market.
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