AXA Mansard Plc’s shareholders will get a total dividend of N3.6 billion for the fiscal year that ends in December 2023, or 40 kobo per share, according to the group’s declaration.
The News Chronicles was able to collect this information from the company’s revised corporate action statement to the Nigerian Exchange Limited (NGX).
A final dividend of N3,600,000,000 (three billion, six hundred million naira) has been declared by the board of directors to be given to shareholders. This means that each N2 share will yield a dividend of 40 kobo.
An interim dividend of 6 kobo per N2 share was distributed in December 2023 out of this total. Subject to withholding tax and the permission of the relevant authorities, the final dividend of 34 kobo per N2 share will be paid out.
Regarding the full-year accounting for the period ending December 31, 2023, this final dividend is applicable.
Shareholders whose names are in the Register of Members as of July 15, 2024, who have completed the e-dividend registration process and instructed the Registrar to deposit their dividends immediately into their bank accounts will receive their reported dividends electronically on August 8, 2024.
Financial outcomes
According to The News Chronicle’s previous report, the company’s YoY growth in claims was 23%. This growth appears to have been driven by a 137% increase in non-life premiums written, reaching N35.199 billion, or 54.5% of the gross premiums written, which totaled N64.640 billion.
This probably had a part in the insurance service results’ moderation to N4.703 billion in the first quarter of 2024. Still, the company’s financial performance was very strong.
Foreign currency gains are the key to the remarkable bottom-line success in Q1 2024 and the previous year.
The reported pre-tax profit increased to N15.320 billion in Q1 2024 due to an excellent FX gain of N12.805 billion. The pre-tax profit would have been a meager N2.515 billion had there not been this windfall.
Similarly, a substantial foreign exchange gain saved Mansard’s earnings in the 2023 fiscal year, preventing a possible pre-tax loss of N207 million.
Although Mansard’s pre-tax profit increase is noteworthy, diversification and/or strategic improvements are required due to the underlying instability in non-life insurance claims.
Forecasts for Q3 of 2024
For the third quarter of 2024, Mansard plans to generate N88.430 billion in insurance revenue.
Net investment and other income are expected to bring in N20.085 billion for the corporation. The goals were N18.502 billion for profit before taxes and N13.506 billion for profit after taxes.
The estimated taxation for the period was N4.995 billion, but the estimate for insurance service expense was N57.986 billion.
Monday, July 15, 2024, was the company’s last trading day. It finished at N5.45 per share on the Nigerian Stock Exchange (NGX), up 1.9% from its previous closing price of N5.35. AXA Mansard’s share price was N5.50 at the start of the year, but it has since dropped by 0.91%.
