Earnings up in 2017 for Standard Alliance Insurance
Standard alliance Insurance Plc has finally released its 2017 audited financial statement to the Nigerian Stock Exchange. From the report it was seen that the insurance company had a stellar performance as its Profit after tax came out of the red with an increase of 104 percent, making the company return to a profit at the end of the year from its loss in 2016.
According to the 2017 financial statement, the company grew its profit after tax (PAT) to N586 million last year from a loss of N1.3 billion in the year 2016.
This was largely supported by an increase in revenue of 11 percent. From N4.3 billion in 2016 it was able to grow it to N4.8 billion, which the company said was mainly attributable to its resolve for a reformed corporate strategy.
The company’s 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 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.”