African Alliance Insurance Plc

54, Awolowo Road, Ikoyi

Liability Position as at 30 November 2021 (Estimate)

Conventional 6,013,618,959
Annuity 31,590,892,409
Individual DA 3,535,511,974
Group DA 129,929,642
Group Life - UPR 489,201,740
Group Life - IBNR 1,595,508,638
Additional Reserves 180,408,569
Total 43,535,071,930

Outstanding Claims (Indv & Group) 950,295,314

Prepaid Re 7,987,259

Notes
Conventional Reserves were calculated via a cashflow projection approach, taking into
account future office premiums, expenses and benefit payments. Future
cashflows were discounted back to the valuation date at the valuation rate
stated in the assumptions below.

Indv & Group DA Comprises of Investment linked policies, GAIIP, Esusu and Takaful
businesses. Reserving for these are based on account balances of policies
standing inforce as at the period under review.

Annuity Discounted cashflow method was used for reserving for annuity businesses.
Reserve is set equal to the present value of future annuity payments for each
annuitant assuming an average 20 years payment from inception of
contract, inclusive of guaranteed periods.

Group Life Reserving for Group Life business comprises of unexpired premium reserve
(UPR) net of an expense margin and where necessary for Incurred But Not
Reported Claims (IBNR) to make allowance for delay in claims reporting and
payment. The UPR represents the portion of premiums standing unused for
each scheme as at reporting date. IBNR is purely based on claims historical
assumptions

Assupmtions
Valuation Interest Rate
Conventional Annuity
10.40% Expected VIR for 2021 12.30%
Prudence Margin 1.00%
Less Tax 0.00%
Rate Adopted 11.30%

Additional Reserves
This is set aside to cater for expense over-run and data accuracy. 3% of total
Individual risks