African Alliance Insurance Reports N1.72bn Loss in Q1 2023

In the first quarter of 2023, African Alliance Insurance Plc, one of Nigeria’s oldest life assurance specialists, experienced severe financial pressures, recording a total comprehensive loss of N1.72 billion compared to a net profit of N1.07 billion in the same period of 2022. The company, founded in 1960, faced structural and operational challenges within the Nigerian insurance industry.

Key financial metrics showed a downturn, with a net underwriting loss of N993.35 million, down from a profit of N480.21 million in Q1 2022. Gross premium written fell by 20% to N1.88 billion, while gross premium income contracted by 15% to N1.87 billion.

Claims paid rose by 3% to N1.23 billion, and investment income plummeted by 74% to N145.14 million. The company’s total assets decreased by 2% to N48.31 billion, and total equity deteriorated by 73% to N631.46 million.

The company did not meet the minimum capital requirement of N2 billion as mandated by the Insurance Act, resulting in a net solvency ratio of negative 363%. The financial statements were authorized by Executive Director, Finance, Olabisi Adekola, and Managing Director/CEO, Joyce Ojemudia, on 15 June 2023.