One of Nigeria’s foremost life insurers, African Alliance Insurance Plc has reported its highest half-year profit in eight years in the period ended June 30 2021.
The insurance company which pride itself as the widely recognised most experienced and strongest specialist life assurance office in Nigeria grew its half-year profit by 894.79 percent to N5.05 billion in the first six months of 2021 from N507.62 million in the comparable period of 2020.
This is the first time African Alliance Insurance is reporting a half-year profit in billion. Before 2020 and 2021, the company successively recorded a half-year loss from 2016 to 2019.
The commendable performance by African Alliance Insurance in the first half of this year was on the back of increased income from its operations.
The insurance company reported N116.90million income from its fees and commission. This was not earned in the comparable period of 2020.
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As a result, the company’s net underwriting income was up 43.51 percent to N3.33 billion in June 2021 from N2.32 billion in the same period of the previous year.
The 38.48 percent jump in African Alliance’s net premium income also gave a boost to the company’s income and consequently, the performance in the period. Its net premium income increased to N3.22 billion in June from N2.32 billion in the same period of 2020.
The company’s performance in the review period was despite the N7.74 billion the company spent as net underwriting expenses. In the same period of last year, the company reported net underwriting expenses of N3.96 billion, although analysis of the company’s financial shows the amount was earned not spent.
With the vision to be the most preferred life insurance specialist in Nigeria with 61 years in business, African Alliance said recently that it was targeting 50 percent market growth by year-end.
The insurance company recently developed a self-service portal to ease seamless transactions between the insurer and its brokers.
Speaking on the Do-it-yourself portal, Managing Director/Chief Executive Officer of African Alliance Insurance, Joyce Ojemudia said “the self-service policy platform is customised for brokers to buy end-to-end from the comfort of their offices. This is one of the ways we are embedding technology in our business just so we can achieve seamless service delivery and customer satisfaction while speeding up the underwriting process.”
According to her, African Alliance is all about making progress and the figures are showing it is moving in the right direction.
“We are making loads of progress. In the same period, we paid N3.12 billion in claims, a 29 percent increase from the N2.43 billion we paid same period last year while our Gross Premium Income rose from N1.8 billion to N3.2 billion, representing a 66 percent increase year-on-year. These figures are the reasons we have embarked on an aggressive market expansion campaign to consolidate our all-around progress across the board,” Ojemudia said.
