Standard Alliance Insurance return to profit from N1.3bn loss in 2016

Standard Alliance Insurance Plc. Friday released its 2017 financial statement showing the company grew its profit after tax (PAT) to N586 million in 2017 from a loss of N1.3 billion in the same period of 2016.

The growth was largely supported by an 11 percent increase in revenue from N4.3 billion in 2016 to N4.8 billion. According to the company, the revenue growth was mainly attributable to a resolve for a reformed corporate strategy.

The insurance firm financials also showed that although the company’s insurance claims went up it was not enough to pull down the company’s underwriting profit lower than the preceding year.

The company’s underwriting results (which reveals the efficiency of an insurer underwriting activities) went up by 406 percent, going up from N271million at the end of 2016 to N1.4 billion 2017 year-end.

On the outlook for the company, the company stated in their financials that “they expect their investment income to grow considerably in the coming years as it sets to take advantage of the investment opportunities in the money market and capital markets still maintaining its focus on highly liquid financial instrument such as term deposit, equity and debt instrument.”

“They also expect to see a number of significant adjustments in the year 2018, especially to the realities of vastly changed government revenue profile and the Naira exchange rates against foreign currencies. The private sector may see an intensification of existing and new export initiatives.”

“Lastly the merger of the operations of the company with that of its subsidiary, Standard Alliance Life Assurance Limited which has been concluded to leverage on the synergies derivable would result in the emerging composite company to take advantage of the huge potentials in both the General and Life segment of the insurance market.”