Mansard Insurance 2013FY PBT shrinks by 9 %

Organization examination

Mansard Insurance 2013FY PBT shrinks by 9 %

-Total Assets hits N36.12 billion

Background

Mansard Insurance coverage Plc formally Guarantee Trust Assurance (GTAssur) was integrated in June 1989 as Heritage Assurance Business, a non existence insurance coverage organization. In 2002, Assure Trust Bank acquired a majority interest in the organization and it grew to become Guarantee Trust Assurance.

The firm is registered by NAICOM as a composite firm underwriting all lessons of insurance and danger management business, while also providing financial advisory, investment and consultancy companies.

One of the most profitable companies in the Nigeria insurance business, GTAssur is the only insurance coverage business in Nigeria with Aa-risk rating from Augusto & co.

The firm has 10 billion shares outstanding with shareholders fund of N14.27 billion as at December 31 2013.

Financial outcomes for 2013

Mansard Insurance coverage Plc has emerged as the 1st insurance coverage firm to release its 2013FY outcomes. Gross premium earnings grew by 9 percent y/y to N13.60 billion from N12.4 billion in the very same period of prior year (FY12).

Net premium earnings in the evaluation period rose somewhat by 6 percent to N7.53 billion compared to N7.11 billion in FY12.

Revenue just before tax (PBT) for the yr ended December 2013 fell by 9 % to N2 billion as against N2.18 billion in 2012.

Underwriting income were down by 13 percent in the assessment time period (FY13) to N2.45 billion compared to N2.82 billion as at FY12, even though investment revenue surged by 58 % to N2.35 billion in FY13.

Management expenses and provision for doubtful debt exceeded analysts’ expectation as it spiked by 34 percent to N3.93 billion in 12M13 compared to N2.93 billion in 12M12.

Mansard’s Profits soon after tax (PAT), as at year ended December, 2013 grew by 31 percent y/y to N2.09 billion in FY13 as towards N1.60 billion as at FY12.

Net margin which measures the profitability and efficiency of a company climbed to 15.37 percent in 12M13 from twelve.05 % in 12M12.

Earnings per share EPS enhanced by 35.71 percent to 19k from 14k in FY 2012.

Mansard’s total assets in the assessment time period enhanced by 12.5 percent y/y to N36.12 billion from N32.eleven billion as at 2013FY.

Income and money equivalents had been up by 89 percent y/y to N6.16 billion compared to N3.25 billion in the corresponding of 2012.

Return on Common Assets (ROAA) moved to 5.78 percent in FY13 from 4.98 % as at FY12, although Return on Common Equity (ROAE) shrank to 14.64 % in 12M13 as against eleven.33 % in 12M12.

Share Functionality and Outlook

The company’s share price tag closed at N2.10 as at April 3, 2014 on the floor of the Nigeria Stock Exchange.

The company had a market capitalization of N21.1 billion on the very same day.

Present Value Earnings Ratio was eleven.10x, although estimated Cost Earnings Ratio stood at 744x .Value to guide ratio and Price to revenue ratio were 1.49x and 2.10x respectively.

BALA AUGIE

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