Lasaco Assurance Plc, one of Nigeria’s leading insurance companies, said its underwriting profit grew by 433 percent in the 2017 financial year.
The company’s board told shareholders at its 38th annual general meeting in Lagos, Nigeria, that the underwriting profit grew from N235.2 million in 2016 to N1.2 billion in 2017.
Other major 2017 financial metrics for Lasaco Assurance also showed significant improvement when compared to the previous year’s performance. For instance, investment income grew 98 percent to N874.8 million, premium income, buoyed by the company’s non-life business, grew by 10 percent from N6.04 billion achieved in 2016 to N6.67 billion in 2017, while net premium income increased 162 percent from N1.4 billion in 2016 to N3.6 billion in 2017.
Net underwriting income, which increased 105 percent, was largely attributed to a decrease in the unearned premium income and re-insurance cost of the company.
Although the company recorded a 28 percent decline in operating expenses from N2.4 billion to N1.7 billion in 2017, despite an inflation rate of over 15 percent, profit before tax for the year was negatively impacted as it dipped 25 percent from N1.1 billion achieved in 2016 to N854 million in 2017, following an 80 percent reduction in other income of the insurance firm.
Lasaco management’s comments and analysis for the 2017 financial performance noted that shareholders funds increased by N300 million or three percent from N7.85 billion to N8.16 billion.
Aderinola Disu, board chairman, said: “Lasaco Assurance will sustain it’s proactive steps to shore up it’s identity and improve its positioning in the market. Our emphasis on the ease of doing business will increase as we continue to focus on the critical market.”
Disu said the company is strategically repositioning in new products development to harness the newly identified market potentials.
“This is expected to increase our market share and enable us operate more efficiently and profitably,” she said.
Speaking on an enhanced and efficient access to product offerings as well as customers reach, the company chairman noted that the company’s digital revolution has enhanced its reach to customers and made it easier to provide personalised services in a cost-effective and measurable manner. “Mobile customers can now efficiently access our products,” she said.
She equally noted that despite a difficult 2017 situation, the company was able to deliver a solid performance for the year and grew shareholders value.