Earnings Update – AIICO | CORNERST | MANSARD | CUSTODIAN | NEM | Q1:2022 AIICO: Profit From Sale of Subsidiary (AIICO Pensions) Props Earnings | CORNERST: Decline in Underwriting Profit and FX Loss Impairs Bottom-line | MANSARD: Weak Operational Efficiency Drags Performance | CUSTODIAN: CUSTODIAN Sustains Positive Performance | NEM: Underwriting Profit Buoys Earnings

AIICO – AIICO reported a double-digit growth in top-line as Gross Premium Written advanced by 25.26% YoY to NGN24.66bn. Growth was recorded across all business segments except health management which declined (17.83% YoY). The life business remains the key driver of top-line accounting for 59.66% of total premiums written.

CORNERST – CORNERST’s top-line grew marginally (+3.22% YoY to NGN6.01bn), supported by growth in the non-life business (+5.07% YoY). However, the life and annuity businesses declined (2.40% and 6.00% YoY respectively) due to a drop in both group and individual life businesses. We note a major advancement in the firm’s takaful insurance business (+60.61%), indicating the growing acceptance of the product, and further supports the firm’s insurance inclusion drive.

MANSARD – MANSARD delivered a strong top-line performance in Q1:2022 with a 34.70% YoY rise in Gross Premium Income to NGN17.26bn, driven by growth across all its business segments. However, underwriting profit declined (53.10%) due to increase in actuarial provisioning for the life business given the moderation in yields in the general fixed income climate for the period.

CUSTODIAN – CUSTODIAN in its Q1:2022 financial scorecard recorded an impressive top-line growth (+21.07% YoY to NGN23.38bn), driven by growth from its core business segments. However, claims expenses surged (+14.54% YoY to NGN4.22bn) by Q1:2022, influenced by huge claims payout from the life business during the period, and increase in underwriting expenses (+18.46% YoY).

NEM – In Q1:2022, NEM sustained its solid top-line performance as Gross Premium written (GPW) improved by
26.92% YoY to NGN12.71bn. This was mainly driven by direct premium from the motor (+32.83% YoY), fire (+26.30% YoY) and general accident (+18.05% YoY) segments of the business. We note a strong growth in the agricultural business segment due to increased acceptance and aggressive insurance inclusion drive of the company, although the overall contribution (0.29%) to GPW remains insignificant.



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