NAICOM approves LASACO’s financial report

The National Insurance Commission (NAICOM) has approved the audited financial statement of LASACO Assurance Plc, for the year ended December 31, 2018.

This is just as the company records significant growth across all the top and bottom lines, with Gross Written Premium (GWP) for the period rising by 35 per cent from N6.67 billion in 2017, to N9.01 billion by December 2018.

The GWP, when disaggregated, showed that the company generated a N5.64 billion premium from non-life, while N3.38 billion came from life assurance services.

Net underwriting income of N5.22 billion in 2018 represented 31 per cent increase over N3.99 billion earned in the corresponding period of 2017.

The underwriting profit was more than doubled as it rose by 64 per cent to N2.06 billion last year December as against N1.25 billion the company realised in 2017.

Accordingly, 67 per cent of the underwriting profit of N1.39 billion was realised from the non-life services, while 33 per cent or N667.54 million came through life assurance services.

Investment income during the reference period was down by 14 percent to N753.68 million in 2018 compared with N874.67 million realised as at the end of 2017.

Profit before tax at N958.20 million in 2018, witnessed 12 percent improvement when compared with N854.27 million made in the corresponding period in 2017.

Profit after tax stood at N736.27 million, while the total income of the year was N746.14 million, against N661.87 million and N527.29 million respectively in 2017, representing an increase of 64 per cent over the 2017 bottom line.

Following the performance, the board is proposing the payment of a dividend of five kobo per share to shareholders for the year ended December 31, 2018.

At the end of December 2018, the company had approximately N10.2 billion investment in fixed income and N967 million in equity instruments, according to the financial statements.

Meanwhile, the Nigerian Stock Exchange (NSE) has lifted the suspension placed on the company for late submission of its result.

The capital market regulator suspended eleven listed companies, including LASACO, for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules), in the first week of this month, July 2019.

The Head of Listings Regulation Department of the Commission, Godstime Iwenekhai, said: “The suspension of trading in the Issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

“The Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension”.

The Managing Director/CEO, LASACO Assurance Plc, Segun Balogun, said that the company opted for full adoption of International Financial Reporting Standards (IFRS) 9 as against the deferral option that most of the insurance companies in Nigeria opted for, leading to extra disclosure on the company’s 2018 Financials.

“Trading on the company’s shares will resume with price exiting the stagnant status. Dealing members can now invest in LASACO Assurance Plc”, he said.