LASACO Assurance records N525m profit …grows premium by 13.4%

Underwriting firm, LASACO Assurance plc has achieved a gross premium growth of growth of 13.4 per cent, from N 4.98 billion in 2013 to N 5.63 billion in 2014.

This resulted to a profit before tax of 27 per cent from N412 million in 2013 to N525 million in the review year.

The Company’s investment income also grew from N309 million in 2013 to N515 million in 2014.

Its shareholders’ fund also increased by 9 percent in 2014 from N5.9 billion to N6.4 billion, while the total asset grew by six per cent from N13.4 billion to N14.2 billion.

Chairman of the Company, Ashim Oyekan who disclosed during the Annual General Meeting of LASACO said the Company was able to achieve growth despite the continued global economic and financial crisis in the business environment which undoubtedly affected the general performance of insurance companies.

He added that the growth in investment income is a reflection of the effort at restructuring the company’s growing investment portfolio in order to achieve good return on investments.

On the company’s future outlook, he said: “We have positioned ourselves for a better future in terms of profitability and market share. We have reverted to a composite company with effect from December 16, 2014, following the approval of all regulatory authorities. The composite structure is expected to improve our operational efficiency, reduce cost, and streamline the structure for better service delivery.

“The on-line retail payment systems have been fully integrated and commissioned. We have also channelled our efforts to ensuring an increased social media presence and engagement, which hopefully will increase our visibility.

“In a continued effort towards our brand rejuvenation, we are focused on the theme “Brand and Service Alignment” in 2015. This is geared towards ensuring that our brand attributes align with our service delivery, we have launched a call centre which interface with the insuring public. The brand communication campaign is expected to prepare us for improved performance especially in retail and micro insurance businesses.

“Asides from the significant policy changes, the Nigerian insurance industry during the period experienced stiffer competition with the entrance of foreign operators / global players, consolidations and mergers; divestments of banks from insurance and Bancassurance.”

He stated that consequently, there is an intense competition between these operators and existing Nigerian players. Hence, it is pertinent that we strive to position ourselves in the increasingly competitive environment.

He said that the strict enforcement of “No Premium No Cover” directive of NAICOM improved the general health of the industry adding that the policy resulted in some loss of income from customers who had to adjust their cover contracts to enable affordability rather than full protection.

He noted that they believe there will be more positive effects in the long run.