(Ecofin Agency) - Axa Mansard, the Nigerian subsidiary of French insurance group Axa, reported an overall book loss of N1.6 billion (about $3.76 million) for 2021.

This amount includes an effective net margin of N3.5 billion, which, although positive, was down 21.6% compared to that in 2020. The overall negative result is due to a potential loss of more than N5 billion on available-for-sale assets. In 2020, these assets had generated a potential gain of N4.2 billion.

Let’s note that there is no indication that the available-for-sale assets are the cause of the potential loss. In this segment, Axa Mansard has a majority of government and corporate bonds (24.5 billion naira). By 2021, the group also tripled its holdings in treasury bonds.

The insurance business ended with a net margin of N9.2 billion. Also, investment income, although down, exceeded the company's expectations, reaching N6.13 billion. The insurance group was adversely affected by loss adjustment expenses and other operating expenses.