FORTIS Global Insurance, formerly Standard Alliance Insurance Plc, is struggling to stay afloat, weighed down by the old Standard Alliance Insurance legacy issues. It incurred a comprehensive loss of N5.036 billion in the full year of 2024 as against N483.236 million loss in the corresponding period of 2023.
According to the company’s latest financial statement of 2024, Fortis Global Insurance is technically insolvent as its liabilities exceeded assets in 2024. Liabilities stood at N14.834 billion, while the value of Fortis Global Insurance’s assets was estimated at N13.759 billion over the period.
A company is said to be technically insolvent when liabilities outweigh assets. This often casts doubt on the company’s ability to meet obligations, particuarly to creditors.
Economy Post recently analysed the first half (H1) 2025 of Premium Paints, identifying that its liabilities were 2.3 times total assets – a red flag that the company’s financial crisis was deepening. A yet another firm that was in the same boat before its licence was withdrawn by the Central Bank of Nigeria (CBN) was Aso Savings and Loans. Aso Savings’ assets stood at N26.634 billion, while liabilities were nearly 3 times the assets.
Fortis Global Insurance’s current ratio is less than 1, suggesting liquidity challenges. The current ratio measures a company’s capacity to pay its short-term liabilities due in one year, according to the Corporate Finance Institute. A good current ratio is typically considered to be anywhere between 1.5 and 3. This raises concerns about the business’s ability to meet its short-term obligations.
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The company’s return on assets (ROA), which measures how well a company uses assets like buildings and equipment to generate revenue, is low. The ROA is a very critical profitability ratio in company analysis. An ROA that is less than 5 is considered low. Fortis Global Insurance’s ROA is 1.3, which is very low. Even though the company may not be losing money, it is still considered to be in trouble.
Senior Business Advisor, BDC Advisory Services, Mr Nicolas Fontaine, said: “A company with a ROA of 15 percent or higher is doing very well, while one with 1 percent or lower is likely in trouble. If the return on assets is less than one, you lose money,” said a financial platform, FIIX.
Licence withdrawal impact
In 2022, the National Insurance Commission (NAICOM) announced the revocation of the certificates of registration of Niger Insurance Plc and Standard Alliance Insurance Plc, now Fortis Global.
According to a statement issued by the Head, Corporate Communications and Market Development of NAICOM, Mr Rasaaq Salami, the commission had appointed Mr Sanya Ogunkuade and Mr Kehinde Aina as the Receiver/Liquidator for Niger Insurance and Standard Alliance Insurance Plc respectively.
“This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022.
“Consequently, the commission has appointed Sanya, Ogunkuade Esq of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos as the receiver/liquidator for Standard Alliance Insurance Plc.
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“All stakeholders are advised to forward their enquiries to the respective Receiver/Liquidator for each company for their necessary action.
“The Commission assures all stakeholders of the safety and protection of their interests.”
The move, however, prompted several changes in the company. In March 2025, the old Standard Alliance Insurance Plc unveiled plans to convert its N12 billion debt into equity as part of a broader capital restructuring strategy.
In a statement filed on the Nigeria Exchange Limited, the company disclosed that the debt-to-equity conversion followed a Convertible Facility Agreement, allowing the company to issue and allot up to 15 billion ordinary shares of 50 kobo each to settle the debt.
“The company is hereby authorised to convert into ordinary equity N12bn under the Convertible Facility Agreement and issue shares in full and final discharge of all obligations owed,” the statement noted.
In June 2025, the Nigerian Exchange Limited (NGX) officially implemented the name change of Standard Alliance Insurance Plc to Fortis Global Insurance Plc. This change followed shareholder approval at the company’s Extraordinary General Meeting (EGM) held on April 4, 2025, and the issuance of a new certificate of incorporation by the Corporate Affairs Commission (CAC).
