African Alliance Declares N5.67 Profit, Announces Retirement of Board Chairman

Life insurance expert, African Alliance Insurance PLC, has declared a profit before tax of N5.67bn in 2020 compared to a loss of N7.04bn it incurred in 2019.
This represents over 1300 percent year-on-year increase.

This was made known at the company’s 52nd Annual General Meeting held in Lagos and streamed online.
The company’s Chairman, Dr Anthony Okocha, whose retirement was later announced at the event, highlighted many progresses of the company in the year under review.
He told the shareholders that the company was able to grow its asset base by 29 percent from over N40 billion to N56.3 billion. This was as a result of substantial capital injection, which gave the company a boost on its bottom line to the tune of N5.67 billion from the 2019 loss position of – N7.04 billion.

“These profits have been immediately assigned as retained earnings to further boost our ongoing quest to revamp our books and grow the overall financial standing of your Company,” he said.

A further analysis of the books shows that the company paid N8.16bn in claims, showing 21 percent reduction year-on-year on the previous year’s figure of N10.4bn.
This, according to the Chairman, was as a “result of shrewd underwriting/ vibrant risk selection process which saw African Alliance cede strategically to reinsurers.

“The firm’s income from investments dropped also by 19 percent from N3.02bn to N2.46bn, a direct outcome of the decline in market rates, however, the company’s operating expenses also reduced by 14 percent as a precautionary counter balance to the reduced earnings.

Also speaking, Managing Director/Chief Executive Officer, African Alliance, Joyce Ojemudia, restated the management’s commitment to optimising costs and growing the market.

“Our main focus next year is to grow our market share substantially. This will be achieved by massive beef-up of the sales team (field force and corporate marketers) and provision of necessary tools to aid marketing activities. We will reopen branches in locations we have found promising and enhance our presence in existing locations. Our quest to maintain physical presence resonates with our integrity drive, as insurance is a business of trust especially amongst the retail market.”