By Dipo Olowookere
Despite the harsh operating environment last year, foremost life insurer, African Alliance Insurance Plc, increased its market share, affirming its leading position in the sector.
In the 2019 financial year, it was observed that the company grew its gross premium written (GPW) by 41 per cent to N7.29 billion from N5.17 billion in 2018.
Also, its life fund went up by 16 per cent to N45.33 billion in the same period under review from N38.99 billion in the corresponding period of last year.
The increase in both the premium generated and the life fund lend credence to the company’s strong customer base, continued acceptance as well as a robust sales drive across both retail and corporate lines of business.
Business Post reports that African Alliance Insurance Plc has been in operations for 60 years and during this period, it has provided quality insurance services to its numerous customers, becoming one of the most loved in Nigeria because of its prompt payment of claims.
In the 2019 financial year, the insurer took things higher by demonstrating a relentless commitment to its teeming consumers, with the payment of N9.36 billion as claims compared with the previous year’s N8.78 billion, a 7 per cent year-on-year rise.
The Executive Director, Finance, African Alliance Insurance, Ms Olabisi Adekola, while commenting on the results, credited the increased revenue to shrewd underwriting and better communication of the value of insurance to the retail market.
According to her, “We have grown our retail business to become much more profitable and have supported their sales efforts with targeted communication both above the line and below the line.”
“Unfortunately, while we obviously made more sales, we paid much more claims which impacted negatively on our balance sheet,” she noted.
She stated that, “The bulk of our claims was in the annuity business, which has been affected by our operating environment vis-à-vis the average market rate and limited investment vehicles.
“We all know annuity business is basically about hedging assets against contract liabilities. So, when the market forces are unfavourable, returns on investment will be affected too.”
Ms Adekola further expressed confidence in the firm’s ability to turn the bend going by its corporate strategy, stressing that, “Our strategy has been to keep growing our market share via aggressive sales drive, adoption of digital technology and capital injection.”
“We own viable assets home and abroad which we are certain would aid our quest to capitalize. Indeed, our recapitalization plan is key to our bounce-back strategy,” she added.
African Alliance Insurance pioneered the sales and marketing of takaful insurance in the Nigerian insurance market and has presence pan-Nigeria.
