African Alliance Insurance Plc’s March 2023 financial statements revealed a severe solvency gap, with the insurer reporting a ₦7.27 billion deficit in its solvency margin, alongside a ₦30.46 billion shortfall in assets covering insurance contract liabilities.
The company’s shareholders’ equity stood at just ₦631.46 million at March 2023, down sharply from ₦2.35 billion at the end of 2022, while retained losses widened to ₦41.34 billion.
African Alliance also reported a negative gross solvency ratio of 263 percent and a negative net solvency ratio of 363 percent. The company stated that it did not meet the ₦2 billion minimum capital requirement stipulated under the Insurance Act.
The deterioration came as the insurer swung to a ₦1.72 billion loss after tax in the three months to March 2023, compared with a ₦1.07 billion profit in the corresponding period of 2022. Gross premium written also declined 20 percent year-on-year to ₦1.88 billion.
The accounts showed that insurance contract liabilities had risen to ₦41.64 billion, including ₦31.60 billion relating to annuity liabilities and ₦8.18 billion in life-fund liabilities.
The figures provide an early picture of the financial pressures that later surrounded the insurer. In October 2024, the National Insurance Commission (NAICOM) took over African Alliance’s board and management, citing prolonged insolvency and failure to meet obligations to annuitants and policyholders.
NAICOM subsequently announced in June 2026 that it had completed an 18-month intervention and handed the insurer over to a new board after a turnaround programme.
For investors, the 2023 accounts show that African Alliance’s difficulties were not simply a quarterly earnings problem but involved a much deeper deterioration in capital adequacy and the assets available to support policyholder obligations.
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