WorldStage– African Alliance Insurance Plc has released its audited consolidated and separate financial statements for the year ended December 31, 2023, reporting a loss after tax of ₦3.30 billion. The performance represents a decline compared to the profit after tax of ₦4.69 billion recorded in the previous financial year.
Key Financial Highlights
Insurance Revenue: The company recorded ₦7.09 billion in insurance revenue for 2023, down from ₦8.12 billion reported in 2022.
Insurance Service Result: The insurance service loss expanded significantly to ₦9.03 billion compared to a loss of ₦3.18 billion in 2022.
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Profit/Loss Before Tax: Loss before tax stood at ₦3.30 billion, down from a loss of ₦4.69 billion recorded in 2022.
Taxation: Tax provisions for the year amounted to ₦3.68 million compared to ₦5.30 million in 2022.
Solvency Margin Deficit & Going Concern
Dividend: The board of directors did not propose any dividend payout for the financial year ended December 31, 2023.
According to the report, African Alliance Insurance faced a negative insurance solvency margin of ₦4.43 billion as of December 31, 2023, compared to a negative margin of ₦4.04 billion in 2022. This remains below the ₦2.00 billion minimum solvency margin required for life insurance operators by the National Insurance Commission (NAICOM).
Total admissible assets less net insurance and investment contract liabilities for the group stood at ₦30.62 billion (compared to ₦29.8 billion in 2022).
Leadership Reassurance
Addressing the financial position, the Directors acknowledged the solvency shortfall and confirmed that management has set forth specific corrective measures to restore profitability and improve the company’s capital position.
The board reaffirmed its commitment to strategic risk management, adhering to NAICOM’s Enterprise Risk Management (ERM) guidelines and operationalizing business continuity plans to protect shareholder value and client claims obligations.
