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Tag: Standard Alliance

  • Standard Alliance rebounds with N65.6m profit

    Standard Alliance Insurance Plc has witnessed a strong recovery in the immediate past business year, pulling away from a net loss of N1.34 billion to close the year with a pre-tax profit of N65.56 million.

    Key extracts of the audited report and accounts of Standard Alliance Insurance for the year ended December 31, 2017 released at the weekend at the Nigerian Stock Exchange (NSE) showed considerable growths in the top-line and the bottom-line.

    Gross premium rose from N4.38 billion in 2016 to N4.84 billion in 2017. Profit before tax stood at N65.56 million in 2017 compared with pre-tax loss of N1.21 billion in 2016. After taxes, net profit stood at N58.55 million in 2017 as against net loss after tax of N1.34 billion in 2016. With these, earnings per share turned positive at 0.45 kobo in 2017 as against net loss per share of 10.13 kobo in 2016.

    Also, first-quarter report for the three-month ended March 31, 2018 showed a positive start in 2018 as gross premium rose from N1.0 billion in first quarter 2017 to N1.25 billion in first quarter 2018. Profit before tax increased from N323.29 million to N477.38 million while profit after tax rose from N270.91 million to N406.40 million. Earnings per share improved from 2.50 kobo to 3.70 kobo.

    However, the company witnessed a contraction in the second quarter. Key extracts of the interim report for the half-year ended June 30, 2018 showed that gross premium declined from N3.15 billion in half-year 2017 to N2.35 billion in half-year 2018. Profit before tax dropped from N480.85 million to N337.45 million while profit after tax declined from N379.76 million in half-year 2017 to N284.95 million in half-year 2018. Earnings per share consequently declined from 4.01 kobo to 2.61 kobo.

    Standard Alliance Insurance had in 2017 completed its business combination with Standard Alliance Life Assurance Limited by issuing 917.86 million ordinary shares to shareholders of Standard Alliance Life Assurance Limited to take over all assets and liabilities of the firm.

    According to the scheme of merger, five ordinary shares of Standard Alliance Insurance were exchanged for seven ordinary shares of Standard Alliance Life Assurance Limited.

    The NSE had suspended trading on Standard Alliance Insurance and seven other companies for failing to submit their earnings reports within the required timeline.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period.The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    With the submission of the report, the suspension on the stock is expected to be lifted this week.

     

  • Standard Alliance concludes merger

    Standard Alliance Insurance Plc has completed its business merger with Standard Alliance Life Assurance Limited  by issuing 917.86 million ordinary shares to shareholders of Standard Alliance Life Assurance Limited to take over all assets and liabilities of the firm.

    According to the scheme of merger, five ordinary shares of Standard Alliance Insurance were exchanged for seven ordinary shares of Standard Alliance Life Assurance Limited.

    The additional 917.86 million shares have been listed on the NSE, increasing the total issued and fully paid up shares of Standard Alliance Insurance from 11.99 billion to 12.91 billion ordinary shares.

     

     

  • Standard Alliance gets shareholders’ approval for share reconstruction

    Shareholders of Standard Alliance Insurance Plc have approved the plan by the insurance company to reduce its outstanding issued shares under a reverse stock split arrangement.

    Shareholders approved the share reconstruction at the company’s 21st annual general meeting (AGM) in Lagos.

    Its Group Managing Director,  Mr. Bode Akinboye said the share reconstruction would enable the board and management reposition the company and create value for its shareholders.

    He said the reconstruction would improve the company’s standing in the market place and put the company in a strong position to declare dividend.

    According to him, the share reconstruction will enable the company to reduce the number of its outstanding shares and increase its share price proportionately without affecting the total book value of those shares. Akinboye, who returned to Standard Alliance Insurance in December 2014 after leaving the company as Group Managing Director in 2009, said the share construction was the third point of his four-point transformation project anchored on people, processes and product.

    “The first point of the transformation is clearing all outstanding regulatory issues with the National Insurance Commission, the Securities and Exchange Commission and the Nigerian Stock Exchange, which has been successfully concluded. The second point is the merger of Standard Life Assurance and Standard Alliance Insurance to form a composite insurance company, which has also been concluded. After the conclusion of the share capital and balance sheet restructuring, we shall move to the last of the four-point agenda, which is to raise fresh capital to enable Standard Alliance become a bigger player in the insurance market,” Akinboye said.

    He said the new capital raising might be through loan issuance, debt issuance, equity issuance convertible shares issuance or preference shares issuance, while the company may source funds from both local and international investors.

    He added that the company will also consider technical partners if necessary.

    “Our focus will be on developing our competitive advantages to emerge as a stronger, sharper, safer and stronger insurance company. As external forces continue to reshape our businesses, we are optimistic about the company’s growth prospects in the years ahead,” Akinboye said.

    Standard Alliance Insurance was incorporated in July 1981 as a private limited liability company and commenced full operations in 1982 under the name Jubilee Insurance Company Limited. The name was changed to Standard Alliance Insurance Company Limited in August 1996. Standard Alliance became a public liability company (Plc) on May 30 , 2002 and was quoted on the Nigerian Stock Exchange in December 2003.

  • Standard Alliance to embark on share reconstruction

    Standard Alliance Insurance PLC has announced plans to embark on share reconstruction, to enable the board and management reposition the company and create value for its shareholders.

    The reconstruction is also to  improve the company’s standing in the market place and put it in a strong position for the declared dividend.

    The shareholders approved the share reconstruction at the 21st Annual General Meeting (AGM) held last week at its head office in Lekki, Lagos.

    According to the company, share reconstruction, also called reverse stock split, will enable the company reduce the number of its outstanding shares and increase its share price proportionately without affecting the total book value of the shares.

    Speaking after the AGM, the Group Managing Director, Mr. Bode Akinboye, who returned to Standard Alliance in December 2014 after leaving the company as Group Managing Director in 2009, said the share construction was the third point of his four-point transformation project anchored on people, processes and product.

    “The first point of the transformation is clearing outstanding regulatory issues with the National Insurance Commission,  Securities and Exchange Commission and Nigerian Stock Exchange, which has been successfully concluded.

    “The second point is the merger of Standard Life Assurance and Standard Alliance Insurance to form a composite insurance company, which has also been concluded. After the conclusion of the share Capital/Balance Sheet Restructuring, we shall move to the last of the four-point agenda, which is to raise fresh capital to enable Standard Alliance become a bigger player in the insurance market.”

    Akinboye said the  fresh capital might be raised through loan issuance, debt issuance, equity issuance, convertible shares issuance or preference shares issuance both from local and international investors. Technical partners will also come on board if necessary.

  • Standard Alliance posts N819m

    Standard Alliance Insurance Plc has posted a profit before tax of N819 million, a gross premium income of N5.42 billion and an underwriting profit of N1.23 billion in its 2015 financial year.

    The company’s balance sheet assets stood at Nll.79 billion, with approximately N4.65 billion of it being financed by shareholders’ equity funds.

    Chairman of the company, Johnson Chukwu made this known during the 20th Annual General Meeting (AGM), in Lagos.

    He said he was confident the executives and management of the company had put in efforts and to put the group on a solid footing, where the combined market strengths of the life and general wings of the group would be harnessed.

    “The year 2015 financial year has been another year we worked assiduously to ensure that the company was properly repositioned for the benefit of all stakeholders. In addition, I am happy to report that we have made significant progress in the ongoing merger between our company and Standard Alliance Life Assurance.

    Chairman, Standard Alliance Life Assurance Limited, Bode Akinboye said the life arm of the group’s gross premium written, increased to N2.27 billion in the 2015 financial year from the N1.58 billion it recorded in 2014, representing 43.6 per cent growth,

    Akinboye said the company’s performance for 2015 represented a step in the right direction as premium income grew from N1.834 billion in 2014 to N2.105 billion in 2015, representing 14.8 per cent growth.

    He said in last year, the company’s claims expenses stood at N1.25 billion, as against the N1.55 billion in 2014.

    The company, according to him, also recorded operating result of activities of N246.7 million in profits in 2015, compared to  a N901 million loss in 2014, the equivalence of a 127 per cent growth while post-tax profit of N106.1 million was reported in the year under review, as against N1.532 billion in losses reported for 2014.

  • Standard Alliance loses N1.9b

    Standard Alliance loses N1.9b

    Standard Alliance Insurance Plc has recorded a loss of N1.9 billion, compared to the N240 million loss of 2013.

    It blamed this development on  impairment provisions on assets, as well as share of losses at its associate company.

    The firm however grew its gross premium income to N4.33 billion in its finacial year 2014 against the N3.78 billion posted the year before.

    The company’s underwriting profit also rose to N1.4 billion, compared to the N1 billion posted tgh eprevious year.

    It however, recorded a loss of N1.9 billion, compared to the N240 million loss of 2013 which was occasioned by impairment provisions on assets, as well as share of losses at our associate company.

    “Notwithstanding the performance of last year, we have continued to improve our efforts to take advantage of the positive business atmosphere from the ‘No Premium, No Cover’ principle, as well as from positive post-election realities.

    Its Chairman, Brig-Gen Dominic Oneya (rtd), made this known at the company’s 2014 Annual General Meeting held in Lagos.

    He announced changes on the Board. Five Directors Alhaji Aliyu Yahaya Sa’ad, Olorogun O’tega Emerhor, Dr. Tom Imokhai, Mr. Ayodele Ajayi and Dr. Ramsey Mowoe retired while two – Mrs. Orerhime Emerhor-Iwuagwu and himself were retained.

    He added that six new directors were appointed to the Board. They are: Mr. Bode Akinboye, the Group Managing Director; Mrs. Adetayo Akintunde, Mr. Johnson Chukwu, Mr. EtigweUwa, Mr. Austin Enajemo-Isire and Mrs. Omolola Oshiafi.

    He said Sa’ad has served as Chairman of the Board for nearly a decade while Olorogun Emerhor, who founded the company, also managed its affairs as vice chairman.

    On the company’s future outlook, he said they expected the business environment to be altered.

    Oneya said he was positive about the financial year.

    He stressed that the directors were determined to take advantage of the wind of change in the country and to turn it into profitable opportunity by  focusing their efforts in the market place.

    Akinboye said the industry is among the fastest growing sectors of the economy, with a real GDP growth of about 7.2 per cent last year.

    But the industry’s five-year average yearly growth in premium income over 2010-2014 was about 11 per cent. The industry’s performance is reflective of aggressive marketing by insurers, as well as the impact of policy changes, in particular the upholding of the sanctity of the ‘No Premium, No Cover’ principle which NAICOM began in 2013, and the Local Contents Law 2010 for the energy industry, he added.

    He said: “Such robust growth ushered in foreign investor entries into the industry, especially private equity firms and a handful of global brands.

    “Nevertheless, the industry still faces the three principal challenges of low penetration due to little public awareness, weak enforcement of insurance legislation, and claims fraud.”

    He noted that the company operated in the business environment just described above and it took an adept Management and strong Board oversight for us to arrive at this junction.

    “With hard work and thoughtful customer service, we succeeded in growing our premium incomes at 14 per cent in the year under review, well above industry premium growth rate of about 7.3 per centin 2014.

    “While we managed our claims and expenses effectively, they also had challenges of non-renewal of key customer accounts. We also had to provision for impairments of assets, and needed to book some charges for associate entities we longer wanted to hold investments in. Thus, the overall effects of these impacts were brought upon our Profit and Loss in the year under review.”

    Akinboye further said they had embarked on a transformation agenda that would refocus their strategy and match same with sufficient capital injections.

    He said by last December year, they exited all non-core activities via a divestment in associate companies in real estate, financial advisory and asset management businesses.

    ‘’Our refocused strategy is to aggressively build up our life assurance franchise as embedded in SA Life Assurance Limited,” he said.

  • Standard Alliance grosses N3.7b in 2013

    Standard Alliance grosses N3.7b in 2013

    • Pays N1.07b claims

    Standard Alliance Insurance Plc has recorded a gross  premium of N3.78billion just as it has paid out N1.07billion in claims to its policyholders, its Chairman,  Alhaji Aliyu Sa’ad has said.

    He spoke during the company’s Annual General Meeting (AGM) for the financial year ended December 31, 2013.

    According to him, much of this drop related to the expected impact of the ‘No Premium, No Cover’ policy as well as the slow growth of the economy.

    He said the underwriting profit was N3.13 billion as against N4.99 billion in 2012, a decrease of 37 per cent. The company recorded a loss of N240 million as against N 1.05 billion in 2012.

    He said: “The improvement in performance in comparison to the loss made in 2012 was a result of cost optimisation and prudent management of ‘No Premium, No Cover’ policy in the year under review.

    “We are, however, encouraged that the company continued to make operating profit from its core business. We are, therefore, determined to turn the cycle and return the company to profitability in 2014 and beyond.”

    He noted that available investment opportunities for the insurance industry in the country’s operators include the local content initiative of the Federal Government in oil and gas sector, investment in physical infrastructure and the convergence of the pension industry and the health management organisations (HMOs).

    He said: “Government’s target of 70 per cent local content provides significant opportunities for insurance companies whose capacity had hitherto been a hindrance to meeting earlier targets. The obvious infrastructure needs of the country also provides companies with alternative investment avenue and business opportunities.

    “Year 2013 marked a major shift in the history of the industry with the full implementation and enforcement of ‘No Premium, No Cover’ rule as provided for in the lnsurance Act, 2003. This was initially intended to take effect in October 2012 but was later shifted to January 1, 2013.”

    He explained that this meant that only cash production was recorded in the books of the company, thereby reducing the burden of receivables faced by many insurance companies.

  • Standard Alliance posts N2.6b profit

    Standard Alliance Insurance Plc has posted an underwriting profit of N2.6 billion in its 2012 financial result from an income of N4.9 billion, as against the N4.2 billion realised in 2011. This represents a 17.4 per cent growth in income.

    The company however, made a loss before tax of N1.9 billion, which arose from a comprehensive impairment review of its trade receivables, which rose to N2.8 billion in the period under review compared to N783 million in the preceding year.

    This entailed a 100 per cent write down of premium receivables in preparation for the “No Premium, No Cover” policy, which commenced last year, the company said.

    Its Chairman, Alhaji Aliyu Sa’ad who disclosed the result at the company’s Annual General Meeting (AGM) in Lagos, said nonetheless, the company was able to generate a gross premium of N5.3 billion compared to N4.5 billion in 2011, representing an increase of 19.5 per cent.

    He added that the firm was also able to grow its investment income, which grew to N208 million from N176 million in 2011.

    He further stated that the company still carries subsatantial retained losses although shareholders’ fund remains healthy.

    He said: “Recall that in year 2010, shareholders approved the cancellation of the unfunded shares arising from the 2008 share offer. Unfortunately, the Securities and Exchange Commission (SEC) approval required to implement this decision is still being awaited.

    “Once received and implemented, the directors intend to recommend to shareholders a restructuring of the fund components that will utilise the existing share premium account to write down the retained losses, thereby permitting the resumption of dividend payment to shareholders as early as 2014.”

    On the company’s future outlook, Sa’ad said the plans is to continuously provide the best possible service to its existing clients and capture the interest of new clients through employing an aggressive marketing strategy that would ride on the opportunities that the regulatory environment in the sector has committed to offer in the next financial year of 2013, especially with its “No premium, No cover” policy.

     

  • Standard Alliance records 23% growth in premium

    Standard Alliance Insurance Plc has recorded a 23 per cent rise in its gross premium.

    Presenting the operational results for the year to the shareholders in Lagos, the Chairman, Alhaji Aliyu Yahaya Sa’ad, said the company’s gross premium moved from N3.883 billion recorded in 2010 to N4.765 billion by the end of 2011 business year, giving a growth rate of 23 per cent.

    Reviewing the results, he said the net premium earned, moved from N3.514 billion in 2010 to N4.160 billion in 2011, giving a positive difference of N646.598 million or 18 per cent increase.

    Similarly, the firm’s underwriting profit grew by 56 per cent or N974.729 million, having moved from N1.754 billion recorded in 2010 to N2.728 billion by the end of 2011 operations.

    The investment income rose from N49.250 million in 2010 to N171.116 million in 2011, an increase of N121.866 million or 247 per cent growth.

    He told stakeholders that the underwriting firm recorded a profit of N319.095 million, up from a loss position of N8.462 billion recorded in 2010, giving a 104 per cent growth.

    But the company’s claims payment level dropped by 29 per cent as only N535.848 million was paid within the reviewed period as against N758.348 million paid in 2010.