Underwriter declares N5.67 billion PBT
Despite worries about economic challenges in the country, African Alliance Insurance Plc has recorded profit-before-tax (PBT) of N5.67 billion in 2020 compared to a loss of N7.04 billion in 2019.
This was disclosed by its Chairman, Dr. Anthony Okocha, at the 52nd yearly general meeting of the company in Lagos. He said the growth represents over 1,300 per cent year-on-year increase.
Okocha, who described how the organisation was able to grow its asset base by 29 per cent from N40 billion to N56.3 billion, said the result of substantial capital injection increased the 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 the ongoing quest to revamp books and grow the overall financial standing of your company,” he said.
Further analysis revealed an amount of 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 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 N3.02bn to N2.46bn, a direct outcome of the decline in market rates, however, the company’s operating expenses were also reduced by 14 per cent as a precautionary counterbalance to the reduced earnings.
The Managing Director/Chief Executive Officer, Joyce Ojemudia, said the management was committed to optimising costs and growing the market.
She said the focus next year is to grow market share substantially and reopen branches in locations found promising while enhancing its presence in existing locations.