African Alliance Insurance posts NGN3.0 billion profit in 2016

African Alliance Insurance posts NGN3.0 billion profit in 2016

After reporting a loss in the year 2015, is reporting NGN3.0 billion profit for 2016 against NGN4.9 billion loss recorded in the year 2015.

Gross income for the year was NGN14.7 billion compared to NGN14.4 billion recorded in the year before. Its reinsurance expenses for the period was NGN35.1 million against NGN42.1 million recorded in 2015.

The company’s et income for the year increased to 14.6 billion in contrast to 14.4 billion recorded in the year 2015, while its underwriting profit was NGN1.2 billion against NGN4.9 billion loss recorded in the year before.

Investment income was higher at NGN3.2 billion in the year in review from NGN1.8 billion recorded in the previous year. It’s impairment charges increased to NGN90.8 million against NGN51.6 million posted in 2015.

The company recorded NGN3.3 billion profit before tax in the year 2016 in contrast to NGN4.7 billion loss recorded in 2015.

African Alliance Insurance plc said its total assets for the year 2016 was NGN45.3 billion against NGN36.8 billion posted in 2015 while its total liabilities increased to NGN39.5 billion versus NGN34.2 billion recorded in the previous year.

Company Profile

African Alliance Insurance Plc was incorporated as a Private Limited Liability Company on May 6th 1960 and was the first Indigenous Insurance to carry out the business of Life Assurance in Nigeria. The Company was originally set up in partnership with Munich Reinsurance Company of Germany, the largest Reinsurance Company in the world. Munich – Re still provides technical support to the Company on a need basis.

In 2005, African Alliance became the first licensed Takaful (Islamic Insurance) Operator in Nigeria – a concept borne of the desire to satisfy the needs of the Muslim Ummah in Nigeria through a robust selection of Sharia – compliant insurance and investment products based on the concepts of “Al-Mudarabah” and “Al-Tabarru”.

Also in 2005 African Alliance Insurance (then still a Limited Liability Company) in a Joint Venture with First Securities Discount House Limited (“FSDH”) set up Pensions Alliance Limited (“PAL”), a licensed Pension Fund Administrator. In 2009, African Alliance was listed on the Nigerian Stock Exchange; thus becoming known as African Alliance Insurance Plc.

Following its’ successful recapitalization in 2007, African Alliance currently has a Shareholders’ Fund of about N 5.27bn, while the Company’s Gross Premium Income and Asset Base currently stand at about N 10.07bn and N 23.12bn respectively (figures as at December 2014 – unaudited).

African Alliance has 100% equity in Axiom Air Limited, a Cargo Airline Company, Frenchies Foods (Nigeria) Limited, a Restaurant and Catering Services Company and 96% equity in Ghana Life Insurance Company Limited.