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Shareholders raise support for recapitalisation drive

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Shareholders of life insurers’ in the country have restated their support to the board and management of the companies in their ongoing quest to reposition the organisations and be fully recapitalised in line with the directives of the National Insurance Commission (NAICOM).

This was disclosed by the Brand, Media and Communications Manager, African Alliance, Bankole Banjo, in an interview with The Guardian over the weekend.

He stated that the support was a major outcome of the 50th yearly general meeting organised by the company in Uyo, Akwa Ibom State.

He pointed out that despite the odds, the insurers are rapidly on the path to prosperity as evidenced by the improvements in the financial statements.

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“There is no doubt we are on the rise again, considering where we were before now. In the period under review, our profit after tax decreased from a loss of N6.72 billion in 2017, to a loss of N2.4 billion 2018.

“It is important to note that the bulk of these year-on-year losses were technical arising from the drop in interest rates which significantly affected the returns on annuity assets that accounted for 96 per cent of the company’s business portfolio.

“By the time the 2019 results are released, you would see how your company has turned the bend,” he said.

He further disclosed that the company’s recapitalisation drive involves a combination of strategies including new equity injection by existing and new investors, assets conversion as well as possible merger.

The Managing Director and Chief Executive Officer, Funmi Omo, highlighted the major changes the business has undergone as part of its repositioning for growth.

“Lately, there has been an aggressive effort towards improving our brand visibility and we have opted to explore the power of technology through digital marketing. Our recent rebranding is a major part of this process and we are already reaping the gains of that exercise in folds.

“We have also introduced new products to balance our portfolio and cushion the effect of the accumulated losses the decision on annuity brought on the business while a comprehensive training and retraining plan is being executed in line with the corporate goal to prioritise capacity building and reposition the business to attract the best talents.

“Within the last two years, skilled and experienced personnel have been employed to bolster our online presence, optimise our website and build a more interactive call centre. I dare say we have the most engaging online presence in the industry,” she said.

Recall that recently, African Alliance was rated Bb+ with a ‘stable outlook’ by foremost financial ratings agency in Nigeria, Agusto & co.

A publicly quoted life insurance company incorporated in 1960, African Alliance operates out of the corporate headquarters in Ikoyi, Lagos, as well as in 18 branches nationwide.


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