AFRICAN ALLIANCE RETURNS TO PROFIT AS CLAIMS FALL

** **African Alliance Insurance Plc returned to profitability in the first half of 2024, recording a profit after tax of N1.18bn, compared with a loss of N582.3m in the same period of 2023.

The insurer’s improved performance was largely driven by stronger underwriting results and a significant reduction in claims. Net underwriting profit rose to N2.87bn from a loss of N137.1m recorded a year earlier.

Claims incurred fell by 59.4 per cent to N1.35bn from N3.34bn. The change in long-term insurance contract liabilities also increased by 256 per cent to N2.70bn during the period.

However, the company recorded weaker premium income. Gross premium written declined by 10 per cent to N3.28bn, while gross premium income fell by 27 per cent to N2.34bn. Net premium income also dropped by 29 per cent to N2.24bn.

Investment income weakened significantly, falling from N1.19bn in the first half of 2023 to N260.75m.

Despite the decline in premium and investment income, shareholders’ equity increased by 58 per cent to N3.21bn, while total liabilities fell by six per cent to N43.70bn.