Insurance underwriting giant, Standard Alliance Insurance Plc, has formally merged with its sister company, Standard Life Assurance, to become one big insurance company, underwriting life and non-life insurance businesses.
With the development, Standard Alliance is now a composite insurance firm underwriting both Iife and non life business as a single entity.
“The court-sanctioned merger makes Standard Alliance Insurance Plc a leading composite insurance company with a shareholders fund of N6.392b and asset base of N13.651b”, said its Group Managing Director, Bode Akinboye.
Akinboye, explained that the merger was a deliberate and strategic decision by the boards of both companies to form a frontline composite insurance company which will play a leading role in the nation’s insurance sector with the ultimate goal of making the company the most preferred place to invest in.”
“The emergent composite company, means combined professional and result-oriented workforce. Standard Alliance Insurance Plc is now better poised to continue to provide more innovative products and deliver on its promises to all stakeholders”, he said.
Standard Alliance Insurance was late last year, accorded Rating of BBB (NG), Outlook Stable By the Global Credit Rating (GCR) .
This was based on the following key criteria:
Shareholders’ funds which rose by 28% to N4.2bn at FYE15, on the back of internal capital generation. In conjunction with a substantial reduction in retained premium volumes, this led to an improvement in risk adjusted capitalisation, with the ratio of shareholders’ funds to net earned premium (“NEP”) improving to 172% at FYE15 (FYE14: 86%). In turn, statutory solvency regained compliance at FYE15, with admissible asset coverage of liabilities equating to 1.5x.
GGR, looking at the company’s future stated, going forward, risk adjusted capital adequacy is expected to remain at an adequate level”.
The company’s result in 2016, according to Akinboye, remained very encourage just as he is optimistic that the current merger would skyrocket the company to the realm of its glory in the current business year.