LASACO Assurance Plc has announced that it generated N9.0 billion Gross Premium Income from it’s business operations during the period ended December 31st, 2018.
This was announced by the company’s Chairperson, Board of Directors, Mrs. Aderinola Disu, Tuesday, at the company’s 39th Annual General Meeting (AGM) held at Oriental Hotels, Lagos.
She said the review of the company’s performance in 2018 shows a positive performance across all financial metrics, adding that the result is achieved by continued strategic repositioning of the company.
Mrs. Disu said the company’s gross Premium income grew by 35 percent from N6.6 billion achieved in 2017 to N9.0 billion in 2018.
The company’s net underwriting profit, according to her, also increased by 25 percent from 3.67 billion in 2017 to N4.59 billion in 2018.
She said as a result of proper underwriting, the company’s net claims expenses decreased by five percent from N1.9 billion incurred in 2017 to N1.8 billion in 2018.
While underwriting profit also increased by 63 percent from N1.25 billion in 2017 to N2.04 billion in 2018, she said the profit before tax increased by 12 percent from N859 million to N958 million during the period under review.
Mrs. Disu stated that the shareholders’ fund increased by two percent from N8.15 billion in 2017 to N8.48 billion in 2018.
Going forward, she said the company will continue to concentrate on the approaches that have given them the utmost dividend. “We remain committed to the continued delivery of excellent services to our customers, which will eventually ensure that our shareholders are rewarded largely,” she promised.
In order to meet the regulatory requirements as mandated by the National Insurance Commission (NAICOM) that all insurance and reinsurance companies should review their minimum paid-up capital upward before June 30, 2020, she said the company, as a composite insurance Company is aware and has set up all the necessary machineries in motion to meet the requirements.
“As you are aware your company is a composite insurance company. It will remain so. We have therefore set in motion all the necessary machineries to ensure that we meet the N18 billion minimum capital required.
“We are very optimistic that before the expiration of the deadline set by NAICOM, your company will be recapitalised.
“We are taking confident strides this year knowing fully well that our business have been strategically positioned to take advantage of key opportunities as we stay on course in the execution of our growth strategy,” the chairperson said.
She said the company is resolved on developing new and cheaper distribution channels using the latest technology to achieve “our objective as we march on in 2019.”
Under special business, a five kobo per share dividend was approved.
It was also resolved that the company’s existing shares of 7,334,344 ordinary shares be reconstructed on a one new share for every four shares previously held. Directors were authorised to appoint all necessary parties and to do all such acts and things to give effect to the share capital reconstruction exercise.
The board of directors were also authorised subject to the approval of relevant regulatory authorities to raise additional capital through the issuance of up to 9,250,000,000 ordinary shares of fifty kobo each at N1.20K per share by way of special/private placement.
Approval was also granted by the shareholders that the sum of N2,749,279,000 representing the surplus nominal value of the reconstructed shares be transferred into the share reserve account and form part of the shareholders’ funds of the company and that the reconstructed 1,833,586,000 ordinary shares of 50k each, be revalued in accordance with the ratio of reconstruction, subject to appropriate regulatory consent and be listed on the Nigerian Stock Exchange (NSE).
While responding to questions raised by some shareholders at the AGM, the Managing Director/Chief Executive Officer of the Company, Mr. Segun Balogun, told the shareholders that the company will do everything possible to ensure the survival of LASACO Assurance and implored them (shareholders) to support the board in its plans to move the company forward.
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