African Alliance Insurance pays N7.5bn claims to policyholders

African Alliance Insurance Plc has paid N7.5 billion insurance claims to its numerous policyholders who suffered insured risks in 2021.

This included N475 million claims it paid in the current month alone ahead of yuletide.

Speaking on the firm’s claims profile, MD/CEO, African Alliance Insurance PLC, Joyce Ojemudia, reaffirmed the company’s commitment to satisfying her teeming policyholders.

“At African Alliance Insurance PLC, we are in the business of paying genuine claims as due. This is more important as the year rolls to an end with many uncertainties that may affect the festivities. For us, we have promised we will be with them for life, this is our ongoing fulfillment of that mantra,” Ojemudia said.

Going further, she restated the company’s long history of claims payment while informing stakeholders that the firm has instituted a seamless claims process which included “fortifying the claims unit with agile and nimble claims experts enabled by technology to join the team on ground. This has resulted in a faster processing time for claims. As we end this year on a good note, we are reassuring our customers that we won’t renege on our commitment to paying claims as due.”

According to the year-to-date breakdown presented to the media, the life insurer has paid N1.23bn in Individual Life claims; N1.36bn Group Life; N626m Takaful; N25.2 million Esusu payouts as well as N4.35 billion in Annuity payments.

African Alliance Insurance in the 2020 financial year bounced back from a loss position making aa profit before tax of N5.67 billion in 2020 compared to a loss of N7.04 billion in 2019 representing over 1300 percent year-on-year increase.

Its assets grew by 29 percent from over N40 billion to N56.3 billion. This was because of a substantial capital injection that gave the Company a boost on her bottom line, to the tune of N5.67 billion from the 2019 loss position of N7.04 billion.

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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, management said.

Further analysis of the books shows that the company paid N8.16 billion in claims, a 21 percent reduction year-on-year on the previous year’s figure of N10.4 billion. This, according to the company, was as a “result of shrewd underwriting / vibrant risk selection process which saw it cede strategically to reinsurers.” The firm’s income from investments dropped also by 19 percent from N3.02 billion to N2.46 billion in 2020, a direct outcome of the decline in market rates, however, the company’s operating expenses also reduced by 14 percent as a precautionary counterbalance to the reduced earnings.

Ojemudia said, “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”.

She said, “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.” She also 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 IT upgrades to support the business goals.”

Incorporated in 1960, African Alliance Insurance Plc is widely regarded as the strongest and most experienced life insurance specialist in these climes. Operating out of its HQ in Lagos and 18 branches nationwide, the ISO certified firm recently demonstrated its ambitions in the retail space with the opening of two new branches to aid penetration.