AXA Mansard to disburse N3.6bn in dividends for FY 2023
By Esther Agbo
AXA Mansard Plc has announced it will pay shareholders a total dividend of N3.6 billion for the fiscal year ending December 2023, equating to 40 kobo per share.
This information was detailed in the company’s updated corporate action announcement to the Nigerian Exchange Limited (NGX).
The Board of Directors has approved a final dividend of N3.6 billion, equivalent to 40 kobo per N2 share. Of this total, 6 kobo per N2 share was already distributed as an interim dividend in December 2023.
The remaining 34 kobo per N2 share will be paid as the final dividend, pending necessary approvals and tax deductions.
This final dividend relates to the full-year accounts ending December 31, 2023. Eligible shareholders, those listed in the Register of Members as of July 15, 2024, and who have completed the e-dividend registration, will receive their dividends electronically on August 8, 2024.
However, AXA Mansard recorded a 23 percent year-on-year growth in claims, influenced by a 137 percent increase in non-life premiums written, which reached N35.199 billion.
This represents 54.5 percent of the N64.640 billion in gross premiums written. This growth likely moderated the insurance service results to N4.703 billion in Q1 2024.
The company’s strong bottom-line performance was primarily driven by foreign exchange gains. In Q1 2024, AXA Mansard reported an impressive FX gain of N12.805 billion, boosting its pre-tax profit to N15.320 billion.
Without this gain, the pre-tax profit would have been only N2.515 billion. Similarly, in the 2023 fiscal year, substantial FX gains prevented a potential pre-tax loss of N207 million.
While the pre-tax profit surge is noteworthy, the volatility in non-life insurance claims underscores the need for strategic enhancements or diversification.
For the third quarter of 2024, AXA Mansard aims to achieve insurance revenue of N88.430 billion.
The company also projects N20.085 billion in net investment and other income, with targets for profit before and after tax set at N18.502 billion and N13.506 billion, respectively. Insurance service expenses are projected at N57.986 billion, with forecasted taxation of N4.995 billion.
On its last trading day, July 15, 2024, AXA Mansard’s shares closed at N5.45 per share on the Nigerian Stock Exchange (NGX), a 1.9 percent increase from the previous closing price of N5.35. The company began the year with a share price of N5.50, marking a slight decline of 0.91 percent.
