The 2013 financial account of Mansard
Insurance Plc has been approved by the National Insurance Commission (NAICOM),
bringing the number of firms that have scaled the approval hurdles to three, as
those of Custodian Life and General Insurance had earlier been endorsed.
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| Commissioner for Insurance, Fola Daniel |
The Commission in a publication on its
website said on Tuesday, April 8, the accounts of Custodian Life Assurance
Limited; Custodian General Insurance Limited and Mansard Assurance Plc have
been approved, while those of Zenith Life Insurance Limited; NSIA Insurance
Limited formerly (ADIC); FBN Life Assurance Limited and Cornerstone Insurance
Plc were being reviewed.
With the approval Mansard Insurance can now
proceed with its annual general meeting slated for April 24, at Federal Palace
Hotel in Lagos. The firm is making a final dividend payout of 8k to its
shareholders.
The firm said diversified investment base,
expansion in retail business and aggressive market penetration helped spurt its
2013 financial performance.
For the year ended December 2013, the
underwriting firm grew gross premium written down by nine percent to N13.59
billion from N12.44 billion in 2012.
Net premium income in the review period
rose by six per cent to N7.50 billion from N7.11 billion in 2012, while net
profits surged by 31 per cent to N2.09 billion in backs by tax write backs.
Its Chief Client Officer Tosin Runsewe
said: “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”.
The firm has utilised the resources of the
owners of the business efficiently as return as Return on Average Equity (ROAE)
moved to 15 percent in FY13 from 12 percent as at FY12,
In addition, Return on Average Asset (ROAa)
shrank to 8 percent in 12M13 as against 16percent in 12M12.
Net margin which measures the profitability
and efficiency of a firm climbed to 15.37 per cent in 2013 from 12.05 per cent
in 2012.
Earnings per share EPS increased by 35.71
percent to 19k from 14k in 2012.
“This is the first time, since our
renaissance, that we would record a single digit growth, but we understand the
peculiarities of 2013. We are unwearied because we are seeing growing numbers
in Mansard’s penetration of a resilient market,” said Rashidat Adebisi, Chief
Financial Officer of the company.
“We also find the 2013 financial year
interesting as we saw retail business being a major driver of both revenue and
profit.”
Cash and cash equivalents were up by 89 per
cent y/y to N6.16 billion compared to N3.25 billion in the corresponding of
2012.
Mansard’s total assets in the review period
increased by 13 percent y/y to N36.13 billion from N32.11 billion as at 2013FY,
while shareholders fund grew slightly to N14.27 billion.
“To this end, we successfully opened three
more Mansard Welcome Centres in Lagos and a branch in Port Harcourt. This
brings our distribution network to 14 Mansard Welcome Centres and 2 Branches in
Abuja and Port Harcourt,” said Adebisi.
Operating expenses ratio in the review period
jumped to 49 percent as against 41 percent in 2012, while cost to sales ratio
climbed to 64 per cent in 12M13 from 57 per cent in 12M12.
The insurance company’s share price closed
at N2.21 on the floor of the Nigeria Stock Exchange.
Market capitalisation on the same day was
N22.11 billion making it the largest Nigeria insurance company by market value
“Overall, we achieved 31 per cent increase
in our net earnings as a result of significant growth in the income from our
increasingly diversified investment base,” said Runsewe.
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