Law Union and Rock Insurance Plc has declared a 100% profit in 2016, Chairman of the Company, Mr. Remi Babalola, stated this on Tuesday at the company’s 48th Annual General Meeting (AGM) in Lagos.
According to Mr. Babalola, in 2016, the company increased marginally in her top-line while it recorded a significant growth in the bottom-line.
The Company ended the year with N3.935 billion Gross Premium Written compared to N3.858 billion recorded in 2015, he said, adding that Profit before Tax grew by over 100%, from N0.328 billion in 2015 to N0.658 billion.
He stated that total assets grew by 3.72 per cent to N8.580 billion, while shareholders’ funds grew by 13.03 per cent from N4.458 billion to N5.039 billion in 2016.
Bablola said the Company’s mantra remained “unfailing and prompt settlement of all claims” with Claims Paying Ability (CPA) rating of A- . He said the company paid out N1.454 billion in 2016.
In his report to the Shareholders, Babalola said by the approval of the shareholders of the Company to raise additional capital by way of private placement to the tune of 1,031,199,000 ordinary shares of N0.50 Kobo at N0.70 Kobo per share, requisite regulatory approvals were obtained for the placement issue.
Consequent upon a conditional approval issued by the National Insurance Commission, that the investor’s post-placement position should not exceed 20 per cent of the Company’s equity, the placement was 83.3 per cent subscribed, thus bringing the total shares subscribed to 859,000,000ordinary shares.
The additional capital raised is expected to significantly enhance the Company’s operations and boost its capacity to play in the oil & gas and engineering subsector of the insurance space.
The Chairman also eulogised the immediate past Chairperson of the company, Princess Adenike Adeniran, who retired last year from the Board for her astuteness and leadership openness sand accountability while heading the Board.
Also,the Managing Director, Mr. .Jide Orimolade, said the profitability of the company has constantly been increased since 2014.
He also confirmed that the repositioning has begun to yield result as the company was able to regain her dominance in the Engineering market.
He attributed the company’s great feat to the various strategic initiatives which were driven by state of art technology which gave the company competitive advantage ahead of our competitors and enable her to navigate through the turbulent economy in 2016 with a good profitability.
The Managing Director/Chief Executive Officer said: “Our careful attention on our service delivery to the customer satisfaction has further given the company respect and recognition in the industry.
“Our attention would be given to distribution of our products to the burgeoning middle class which has the highest volume. We expect to reap huge premium through retail products as well as launch more new retail product. We shall continue to upgrade our technology in order to provide excellent and cutting edge service delivery. Huge value will be placed on our customers to secure their loyalty and thereby record high customer retention”.
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