SEC, NAICOM sanction African Alliance Insurance N3.9m in 2020


By Kayode Tokede

The Securities and Exchange Commission (SEC) and National Insurance Commission (NAICOM) have sanctioned African Alliance Insurance Plc N3.9million for contravening certain regulations in 2020 financial year.

The capital market regulating body sanctioned the Insurance company N3.4million in 2020 and the company paid NAICOM N500,000 for outstanding penalty for late submission of result and accounts.

However, in the result and accounts for full year ended December 31, 2021, the African Alliance Insurance the Group made a profit after tax of N5.6billion as against N7.0 billion loss in the previous year.

The Group premium income reduced by 19per cent during the current year under review over previous year 2019. This is attributable to the stiff operating environment particularly the outbreak of Covid-19 pandemic and lockdown at various period.

The net underwriting income reduced by 18per cent when compared with previous year due to above reasons.

The Group result showed a negative amount of N14.3billion during the year against a result of N9.5billion loss in the previous year due to drastic drop-in interest rate in the market which increased changes in contract liabilities.

Investment Income reduced by 19 per cent as at 31 December 2020. This is attributable to crash in interest rate in the market which affected investment income of the Group.

The operating expenses of the Group reduced by 14 per cent as at 31st December 2020 when compared with previous year December 31, 2019.

The Managing Director/Chief Executive Officer, African Alliance Insurance , Joyce Ojemudia, has said the company recently said it has developed a self-service portal to ease seamless transactions between the insurer and brokers.

Speaking on the Do-it-yourself portal, she said: “The self-service policy platform is customised for brokers to buy end-to-end from the comfort of their offices. This is one of the ways we are embedding technology in our business just so we can achieve seamless service delivery and customer satisfaction while speeding up the underwriting process.”

She reiterated the company’s quest to achieve a minimum of 50 per cent growth in its market share.

“Progress is what we are all about and as the figures show, we are making loads of progress. In the same period, we paid N3.12 billion in claims, a 29 per cent increase from the N2.43 billion we paid same period last year while our Gross Premium Income rose from N1.8 billion to N3.2 billion, representing a 66 per cent increase year-on-year. These figures are the reasons we have embarked on an aggressive market expansion campaign with a view to consolidating our all-round progress across board,” she said.

Chairman, NCRIB Southsouth Area Committee, Joseph Olaniyan, commended the management of African Alliance Insurance for its giant strides, especially in the last one year.

“We, at the Southsouth Area Committee, have felt and experienced a major turnaround in African Alliance and I can assure you that we will do more business with African Alliance Insurance in the coming days because for us, we want to do business with the firm that can assure us of their unwavering quality service delivery at all times,” he said.

Incorporated in 1960 to transact life businesses in Nigeria, African Alliance Insurance PLC has grown in leaps and bounds providing succour for individuals and aiding businesses across the country for over six decades.