African Alliance Insurance Plc has posted a Profit Before Tax (PBT) of N5.67 billion, representing over 1300 per cent year-on-year increase in the 2020 financial year as against a loss of N7.04 billion recorded in 2019.
This was made known at the company’s hybrid 52nd Annual General Meeting held in Lagos.
Speaking to shareholders at the event, its retiring Chairman, Anthony Okocha, highlighted the progress of the company in the year under review.
His words: “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 the company,” Okocha said.
A breakdown of the performance showed the underwriter paid N8.16 billion in claims, indicating 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. However, the firm’s income from investments dropped by 19 per cent, from N3.02 billion to N2.46 billion, a direct outcome of the decline in market rates, likewise, the operating expenses also reduced by 14 per cent as a precautionary counterbalance to the reduced earnings.”
Commenting on the performance, Managing Director/Chief Executive Officer of the company, 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 a massive beef-up of the sales team (field force and corporate marketers) and the 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 a physical presence resonates with our integrity drive as insurance is a business of trust, especially among the retail market. This effort will be supported by digital technology as we adopt a two-prong onslaught on the market.”
Ojemudia listed as priorities the renewal of the company’s ISO certification as a business tool to enhance market confidence; staff training and retraining to aid knowledge acquisition; recruitment into key technical areas as well as massive Information Technology upgrades to support the business goals.
Sunnews