Standard Alliance Records 30 Percent Decline in Gross Premium

By Chinazormegbolu ThisDay

Standard Alliance Insurance Plc recorded a gross premium of N3.78 billion for the 2013 financial year, showing a drop of 30 per cent when compared to the N5.38 billion in the year 2012. Addressing shareholders at the 18th annual general meeting of the company in Lagos, Chairman Standard Alliance Insurance, Mr. Aliyu Yahaya Sa'ad, said the company ended the year with a loss of N240 million. According to him, the loss was as a result of expected impact of the 'no premium, no cover' policy and low economic growth.

Standard Alliance posted net premium income of N3.09 billion, down from N4.9 billion in 2012, while underwriting income stood at N3.2 billion, as against N4.9 billion. The company recorded a loss of N239 million from its associate companies, as against a profit of 274 million in 2012.

In all, the company ended with a loss before tax of N789 million, which was an improvement on the N1.688 billion loss recorded in 2012. Also, loss of after tax improved from N1.82 billion to N880 million.

"The improvement in performance in comparison to the loss that was made in 2012 was a result of cost optimisation and prudent management of 'no premium, no cover' policy in the year under review," the chairman said.

Sa'ad pointed out that despite all the losses, they are encouraged the company will continue to make operating profit from its core business.

According to him, "we are therefore, determined to turn the cycle and return the company to profitability in 2014 and beyond."

However, things have started looking for Standard Alliance going by the nine months results ended September 30, 2014. The company recorded a gross premium income of N3.73 billion and net premium income of N3.49 billion. It ended the period with a profit of N336 million compared to a loss of 881 million in the corresponding period of 2013.

Standard Alliance Insurance emerged from the now defunct Jubilee Insurance Limited, which was acquired in 1996 by investors. The company commenced full operations as Standard Alliance Insurance Limited in 1996, and went public, issuing shares in excess of N3billion in 2002 and becoming quoted on the NSE in 2003. SA Insurance Plc was recapitalised in 2008 when it issued additional shares to the public to bring its share capital of N6 billion.