African Alliance Insurance Plc, has declared a profit before tax of N5.67bn in its 2020 financial year.
This was an improvement compared to a loss of N7.04bn in 2019 representing over 1300 per cent year-on-year increase.
Speaking at the company’s hybrid 52nd annual general meeting in Lagos, the company’s chairman, Dr Anthony Okocha, whose retirement was later announced at the event, highlighted the many progresses of the company in the year under review.
The company, he said, was able to grow its asset base by 29% from over N40 billion to N56.3 billion.
This, he stressed, was as a result of substantial capital injection which gave the insurer 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 N8.16 billion in claims, a 21 per cent reduction year-on-year on the previous year’s figure of N10.4 billion.
This, according to the chairman, 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% 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.
Whilst giving her remarks at the event, managing director/CEO, African Alliance Insurance PLC,Joyce Ojemudia 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 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.”
Also at the meeting, the retirement of the company’s chairman, Dr Anthony Okocha, effective 20th September, 2021, was announced. a non-executive director of the company, Sylva Ogwemoh who chaired the meeting, described the retired chairman as a man who was passionate towards the cause of African Alliance Insurance Plc.