Standard Alliance Insurance Plc has recorded a strong financial turnaround for the quarter ended December 31, 2024, posting a return to profitability and a significant expansion in its balance sheet, according to its latest unaudited financial statements approved by the Board of Directors.
The insurer reported a profit after tax of N4.99 billion for the quarter, a sharp reversal from the loss of N1.82 billion recorded in the corresponding period of 2023.
This was disclosed in a notice filed with the Nigerian Exchange Limited (NGX) on Tuesday.
This performance was driven largely by robust insurance finance income and substantial gains from investment properties.
From a balance sheet perspective, total assets rose to N13.76 billion in 2024, representing an increase of over 83 per cent from N7.51 billion in 2023. The growth was supported by higher investment property values, which jumped to N11.67 billion from N4.03 billion a year earlier, as well as strong holdings in financial assets measured at fair value through other comprehensive income.
Cash and cash equivalents stood at N540.7 million, while financial assets at amortised cost remained stable at N603.1 million. Statutory deposits were unchanged at N535 million, reflecting regulatory compliance.
On the liabilities side, total liabilities increased to N14.83 billion, up from N12.43 billion in 2023. Insurance contract liabilities declined slightly to N4.86 billion, while borrowings rose to N6.17 billion, indicating increased leverage during the period.
Despite the return to profitability, shareholders’ equity remained negative, though it showed marked improvement. Total equity stood at a deficit of N1.07 billion, compared with a much wider deficit of N4.91 billion in the previous year. Accumulated losses narrowed significantly to N17.03 billion from N22.01 billion, underscoring the impact of the strong quarterly earnings.
On the income statement, insurance revenue came in at N411.6 million, slightly below the N418.1 million recorded in 2023. However, the company posted a positive insurance service result of N66.1 million, compared with N94.5 million a year earlier.
The standout contributor to earnings was insurance finance income of N148.6 million, complemented by a fair value gain of N7.64 billion on investment properties. These helped deliver a net financial result of N5.10 billion, reversing a net loss of N1.79 billion in the prior year.
Profit before tax was reported at N4.99 billion, while income tax expense remained minimal at N3.12 million. Earnings per share improved significantly to 38.65 kobo, from a loss of 14.25 kobo in 2023.
News.ng reports that the latest results signal a notable recovery for Standard Alliance Insurance, with management expected to focus on sustaining profitability, improving capital structure, and returning shareholders’ equity to positive territory in subsequent reporting periods.
