Despite a staggering 704% increase in pre-tax profits, a closer look reveals a need for improvement in core business operations for AXA Mansard Insurance Plc (Mansard).
The substantial profit surge is largely driven by foreign exchange gains, not core insurance activities. The company’s heavy reliance on non-life insurance, which is prone to high claims and volatility, is a cause for concern.
While Mansard’s low P/E and P/S ratios relative to peers suggest potential undervaluation, investors remain cautious due to the lack of diversification and the short-term nature of the profit surge.
For long-term success, Mansard needs to focus on strengthening its core business through strategic diversification and risk management practices. This will ensure sustainable growth and a more favorable return for investors.’