WorldStage– African Alliance Insurance Plc reported a loss after tax of ₦1.72 billion for the first quarter ended March 31, 2023, marking a sharp decline from the ₦1.07 billion profit recorded in the corresponding period of 2022.
According to the un-audited management account filed with the Nigerian Exchange (NGX), the performance was primarily driven by a drop in gross written premiums, a reduction in investment income, and an increase in net claims incurred.
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Key Financial Highlights (Q1 2023 vs Q1 2022)
Gross Premium Written: Fell 20% to ₦1.88 billion, down from ₦2.36 billion in Q1 2022.
Net Premium Income: Decreased by 16% to ₦1.80 billion compared to ₦2.14 billion recorded in the previous year.
Claims Paid: Increased slightly by 3% to ₦1.23 billion.
Investment Income: Saw a steep drop of 74%, falling to ₦145.14 million from ₦559.21 million in Q1 2022.
Underwriting Loss: Stood at ₦993.35 million, compared to an underwriting profit of ₦480.21 million in Q1 2022.
Loss After Tax: Totaled ₦1.72 billion, representing a 260% decline from the ₦1.07 billion profit in Q1 2022.
Earnings Per Share (EPS): Dropped to -8 kobo per share, down from 0.05 kobo in Q1 2022.
Balance Sheet and Business Segments
The insurer’s total assets contracted by 2% to ₦48.31 billion as of March 31, 2023, down from ₦49.53 billion as of December 31, 2022. Total liabilities stood at ₦47.68 billion, driven mainly by insurance contract liabilities of ₦41.64 billion. Total equity declined significantly by 73% during the quarter to ₦631.46 million from ₦2.35 billion recorded at year-end 2022.
A breakdown of product segment performance shows that Group Life generated the highest gross written premium at ₦893.99 million, followed by Individual Life at ₦705.80 million, Takaful at ₦167.38 million, Esusu at ₦91.26 million, and Annuity at ₦18.11 million.
