Mansard Insurance Plc and Beta Glass Plc yesterday announced their financial results for the half year ended June 30, 2014, showing reduced bottom lines. While the insurance company reported a decline of 56 per cent in profit, Beta Glass posted a decline of 23 per cent.
An analysis of results of Mansard Insurance indicated that the underwriter ended the half year with gross premium of N9.6 billion, up by 27 per cent from N7.54 billion in the corresponding period of 2013. Net premium earned stood at N4.5 billion in 2014, compared to N3.5 billion in 2013.
However, management expenses and provision for doubtful accounts rose by 15 per cent from N1.758 billion to N1.999 billion. Profit before tax declined by 52 per cent from N2.1 billion to N993 million, while after tax dipped by 56 per cent from N1.842 billion to N814 million.
Market operators said given the half year results, the company may end the 2014 with lower profit compared to 2013 when it posted a growth of 31 per cent in profit. Mansard Insurance had ended 2013 with profit after tax of N2.1 billion.
Commenting on the 2013 results, the Chief Client Officer, of Mansard Insurance, Mr Tosin Runsewe had 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.”
Meanwhile, Beta Glass Plc reported revenue of N3.915 billion, indicating a growth of 14 per cent from N3.449 billion in the corresponding period of 2013. Cost of sales rose by 20 per cent from N2.5 billion to N3 billion. Administrative cost equally went up from N303 million to N390 million, leading to a decline of 15 per cent in operating profit from N598 million to N505 million.
Finance cost rose by 78 per cent from N98 million to N175 million, making the company to end the period with a profit before tax of N479 million, as against N625 million in the corresponding period of 2013. Profit after tax fell from N448 million to N344 million.