Recapitalisation: African Alliance Injects N14.4bn Through Assets Conversion
L-R: Lagos State Vehicle Inspection Service, Engr. David Famuyide; Deputy President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Tunde Oguntade; President, NCRIB, Mr. Rotimi Edu, mni; Managing Director, African Alliance Insurance Plc, Mrs. Joyce Ojemudia; Executive Director, African Alliance Insurance, Mrs. Olabisi Adekola; and Past President, Mr. Shola Tinubu, at the February Edition of NCRIB Members’ Evening held in Lagos recently.
African Alliance Insurance, Nigeria’s foremost Life Insurer, said it has injected the sum of N14.4 billion into the company through assets conversion as of December 2020.
This is in line with the company’s recapitalization plan towards meeting the recapitalization requirement of the industry’s regulatory organ, the National Insurance Commission (NAICOM) which is currently under suspension.
The capital injection, the company stated, has indeed improved its shareholders’ fund considerably and increased its asset base.
The firm’s Managing Director/Chief Executive Officer, Joyce Ojemudia, speaking yesterday at the February edition of the Nigerian Council of Registered Insurance Brokers (NCRIB) Members’ Evening, sponsored by the company, said the company injected about N14.4 billion through assets conversion as of December 2020.
She added that the company will be increasing its capital base through the right issues targeted at significant shareholders in addition to getting new investors to buy into the company.
She said business combination is the company’s last resort in the event that the above plans are not adequate.
Stressing the importance of claims to the growth and success of the insurance business, Ojemudia said “It is paramount to every insurer to pay claims as this is fundamental to our existence as a business. This principle is taken as a responsibility in our company and has inspired us to continually pay claims promptly which is demonstrated in the billions we have paid in claims year in year out.
She said African Alliance in 2021 business year, paid claims exceeding N7.59 billion to its customers, adding that a substantial bulk of the claims were for annuity claims and Group Life.
The figure, she said, shows an increase of over N590m in claims payment in the prior year. As earlier stated, this is a clear confirmation of our unchanging commitment to paying genuine claims.
The breakdown of the company’s claims for 2021 showed that a total sum of N1,234,586,643.21 was paid for individual life insurance; N1,356,946,902.47 on Group Life; N626,484,201.07 was paid on Takaful, N25,178,089.57 for Esusu while Annuity took N4,348,670,916.82, amounting to a total of N7,591,866,753.14.
In January 2022, she said the company has paid a total of N723.96 million in claims with the following details: Group Life N81.89 million; Individual Life N137.96 million; Takaful N128 million; Esusu N7.3 million and Annuity N368.78 million.
She noted that the company’s claims efforts have been helped by strong reinsurance treaties with top reinsurers as our partners.
On Market Expansion, she said “The key strategic goal in 2021 was to grow our premium income via deliberate market expansion into untapped regions with good prospects for life insurance. To that effect, we have launched the retail marketing expansion strategy which led to the opening of offices in Abeokuta and Akure. In 2022, we are moving northwards as we look to re-establish a presence in Ilorin and Jos as well as other prospective locations.”
Speaking on Product Development, she said “In 2021 in a quest for customer satisfaction, we revamped our Esusu plus in response to our customers’ yearnings to have both a year-long plan as well as a two-year option. We also launched our innovative Term Assurance plan in the market, a product that has excited the market with its short-term focus and value addition. In 2022, we look forward to actively engaging in customer surveys to further develop our products and increase customer satisfaction.”
On technology adoption, she stated, “Our self-service policy platform specifically for brokers as it concerns our Term Assurance product is up and running. We have also commissioned the design of a new core business application which comes with a wealth of benefits.
“We will be able to speed up our efficiency and effectiveness in terms of service delivery to you our dear partners; It will enhance collaboration with our stakeholders. It will significantly aid our digital footprints and support various remote policy buying capabilities.
“We are also working on having a claims portal where all claims can be lodged from the comfort of your homes and treated in a timely manner.”
While soliciting the support of the broking fraternity, Ojemudia posited, “In the previous year, your support and trust in us contributed immensely to what we have built and the capacity on which we stand today. I am confident that the God who has started this great work in our company will see it to perfection. He will continue to order our steps and lead us to an expected end.
“I thank you for believing in us and buying into our vision. Esteemed gentlemen and ladies, another great season is upon us, we call you forth to join us as we sour even higher,” she added.
Earlier in his speech, NCRIB President, Rotimi Edu, thanked African Alliance for their support for the growth of the Council and the industry in general.
He endorsed the Company as a Brokers friendly company and called on members of the council to patronize African Alliance Insurance Plc.
