Law Union & Rock posts N280m profit in 2015
Law Union and Rock Insurance has posted profit after tax of N280 million in its 2015 operations against N125 million recorded in the previous year.Addressing shareholders during the 47th yearly general meetings, in Lagos on Monday, the Chairman of the company, Adenike Adeniran, told shareholders that the company’s profit after tax rose from N125 million to N280 million during the year under review while profit before tax stood at N328.5 million, which represented 27 per cent rise when compared to N259.8 million achieved in 2014.
However, the gross premium written for 2015 decreased by seven per cent from N4.161 achieved in 2014 to N3.858 billion but net premium record an increase by seven per cent to N2.692 billion in 2015 against N2.512 billion in 2014.According to the firm, the increase in net premium was due to better-earned premium ratio in both brought forward and the period under review.
Meanwhile, the underwriting profit for the financial year was N1.144 billion, showing an increase in profit from N1.034 billion in 2014, an increase of 10.6 per cent. Investment income moved from N366 million to N489 million reflecting our ability to generate both free float and high underwriting margins.
“Despite the economic headwinds, the bottom line improved, the investment income was enhanced, solvency and liquidity were higher than prior year. This was as a result of improvement in the investible fund of the company despite the unstable investment climate and depressed interest rate in 2015.
Commenting on the achievement of the company, Adeniran stated that, the balance sheet remains robust, growing and more liquid. The total assets grew by 13.4 per cent from N7.29 billion in 2014 to N8.27 billion in 2015. The cash and cash equivalent also grew by 19.2 per cent from N2.58 billion in 2014 to N3.08 billion in 2015.
The company said it has carried out a “critical review of the overall corporate performance and is repositioning to drive positive and very significant growth in coming years through a well strategic plan”.
In an effort to deepen the transformation of the company, the Managing Director of the firm, Jide Orimolade said the board and the management are in search of foreign strategic investors to grow the business capital, to improve product distribution, upgrade processes and platforms, and deepen our participation in oil and gas, power and transportation segments.Orimolade added that the management was quite confident that all the initiatives will turnaround the fortunes of the company within the shortest possible time.