Standard Alliance Insurance Plc has posted a loss after tax of ₦1.82 billion for the financial year ended 31 December 2023, reflecting continued financial pressure despite a notable improvement in its core insurance service performance, news.ng reports.
According to the company’s audited financial statements released on Wednesday, Standard Alliance recorded insurance revenue of ₦418.06 million in 2023, down from ₦523.85 million in the previous year.
However, insurance service expenses declined sharply to ₦323.53 million from ₦676.26 million, resulting in a positive insurance service result of ₦94.53 million, compared with a loss of ₦152.42 million in 2022.
Investment income rose significantly to ₦174.85 million from ₦30.87 million, but this gain was offset by higher investment expenses of ₦194.16 million, leading to a net investment loss of ₦19.31 million. Overall, the company reported a net insurance and investment result of ₦75.22 million, an improvement from the ₦333.53 million loss recorded in the prior year.
The insurer’s performance was, however, severely impacted by elevated operating costs and foreign exchange losses. Interest expenses on loans climbed to ₦112.62 million, while foreign exchange losses surged to ₦1.75 billion, compared with a gain of ₦94.47 million in 2022. Other operating expenses stood at ₦18.37 million.
As a result, loss before tax widened to ₦1.81 billion from ₦829.72 million in the previous year, while income tax expense amounted to ₦7.51 million. This brought the company’s loss after tax to ₦1.82 billion, more than double the ₦829.72 million loss recorded in 2022. Basic loss per share worsened to ₦14.06, from ₦6.43.
On the balance sheet, total assets increased to ₦7.51 billion as at 31 December 2023, up from ₦6.19 billion in 2022. Financial assets measured at fair value through other comprehensive income rose sharply to ₦1.53 billion, while investment properties remained stable at ₦4.03 billion. Cash and cash equivalents declined to ₦644.27 million, from ₦695.78 million a year earlier.
Total liabilities expanded significantly to ₦12.43 billion, compared with ₦10.62 billion in 2022, driven largely by increased borrowings, which rose to ₦3.84 billion from ₦1.98 billion. Insurance contract liabilities stood at ₦5.06 billion, slightly lower than the previous year’s ₦5.23 billion.
Shareholders’ funds remained negative, with total equity at a deficit of ₦4.91 billion, reflecting accumulated losses of ₦22.01 billion, although this represented a marginal improvement from the ₦4.43 billion negative equity reported in 2022. Fair value reserves improved significantly to ₦1.38 billion, from ₦46.03 million.
Despite reporting a substantial fair value gain of ₦1.33 billion on financial assets through other comprehensive income, the company still recorded a total comprehensive loss of ₦483.24 million for the year.
