African Alliance Insurance Plc’s profit before tax grew to N5.67 billion in 2020, compared to a loss of N7.04 billion in 2019, representing over 1,300 per cent year-onyear increase.
Disclosing this at the company’s 52nd Annual General Meeting held in Lagos, retired chairman of the company, Dr Anthony Okocha, highlighted the many progresses of the company during the year under review. He said: “Your company was able to grow its asset base by 29 per cent from over N40 billion to N56.3 billion.
This was as a result of substantial capital injection, which gave us a boost on our 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. The company, during the period under review, paid N8.16 billion in claims, a 21 per cent reduction year-onyear on the previous year’s figure of N10.4 billion.
This according to him, was as a “result of shrewd underwriting/ vibrant risk selection process which saw us cede strategically to reinsurers.”
The firm’s income from investments dropped also by 19 per cent from N3.02 billion to N2.46 billion, a direct outcome of the decline in market rates. However, the company’s operating expenses also reduced by 14 per cent as a precautionary counterbalance to the reduced earnings. Joyce Ojemudia, Managing Director/Chief Executive Officer, African Alliance Insurance Plc, while speaking, restated the management’s commitment to optimising costs and growing the market.
She said: “Our main focus next year is to grow our market share substantially. This will be achieved bymassive 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.
“This effort will be supported by digital technology as we adopt a two-prong onslaught on the market.