AFRICAN ALLIANCE POSTS N1.72BN LOSS

African Alliance Insurance Plc recorded a N1.72bn total comprehensive loss in the first quarter of 2023, reversing the N1.07bn profit recorded in the same period of 2022.

The insurer’s performance was affected by weaker underwriting results, falling premium income and a sharp decline in investment earnings during the period.

Gross premium written dropped by 20 per cent from N2.36bn in the first quarter of 2022 to N1.88bn. Net premium income also declined to N1.80bn from N2.14bn a year earlier.

At the same time, claims paid increased by three per cent to N1.23bn, while investment income fell by 74 per cent to N145.14m. The company also recorded a net underwriting loss of N993.35m, compared with a N480.21m profit in the previous year.

The insurer’s financial position weakened further during the period. Total equity fell by 73 per cent to N631.46m, while total assets stood at N48.31bn as of March 31, 2023.

African Alliance also disclosed that it had failed to meet the N2bn minimum capital requirement under the Insurance Act. Its solvency margin stood at a deficit of N7.27bn, highlighting the financial challenges facing the company as the insurance industry undergoes recapitalisation.