Despite the economic headwinds that characterised the business environment in the past year, an underwriting firm, Law Union & Rock Insurance Plc (LUR), at the end of 2017 financial year, recorded a Profit Before Tax of N1.1 billion.
This is a 66.8 per cent increase from the 2016 figure of N658.64 million, while Profit After Tax also appreciated by 62.1 per cent, moving from N561.85 million in 2016 to N910.71 million at the end of the review period, underscoring the capability of the board and management to enhance shareholders value.
With the profit, shareholders of the company will smile to the bank for a dividend payout after a long period of reinvestment and ploughing back of earnings for growth and expansion.
Its earnings per share stood at 21 kobo, as against 16 kobo in the previous year, indicating increase in shareholders’ value.
The company, a major player in the nation’s insurance industry, providing risk management services to different sectors of the economy, during the period under review, also recorded a gross premium income of N4.25 billion, as against N3.9 billion in 2016, showing an eight per cent increase.
In the firm’s full year audited result, investment and other income also appreciated remarkably to N912.5 million from N687.3 million in 2016.
A further insight into the financials show a quantum growth in total assets of the company in 2017, which grew by 16.9 percent, from N8.58 billion in 2016 to N10.03 billion in the review year.
The company also kept its own side of the contract with its teaming customers, paying claims and claims expenses of N1.4 billion, as against N967.8 million in the past year.
The positive growth in all the indices in the review year has been attributed to management’s efforts to increase market share and deepen penetration, with the launch of several new products.
The products according to market analysts attracted more premium income into the company’s coffers, and also created enough liquidity to grow investment and meet claims obligations.
Law Union & Rock Insurance in 2017, expressed commitment to retain 90 per cent of existing customers, grow direct and retail business, improve relationship with brokers and other channels.
It also achieved improved credit rating from A- to A+ by Global Credit Rating agency to become the preferred first choice underwriter amongst the general insurance business providers in Nigeria.
The Managing Director/Chief Executive Officer of the company explained that Law Union & Rock has introduced additional new products into the market including: I-Salute; Doctor-on-Cover; GPA-4-Schools and Sure Pay.
According to him, it was designed to provide support and relief to Officers and their families in event of accidents that result in any or a combination of bodily injury requiring resulting in medical expenses.
While the Doctors-on-Cover was designed to help Medical Doctors comply with the law, as well as protect them from unforeseen legal liabilities that could prevent them from practicing what they love.
GPA-4-Schools, the company said is a Group Personal Accident product designed for Schools and Students/Pupils at all levels of education – Kindergarten, Nursery, Primary, Secondary and Tertiary.
It provides cover against accidental death or permanent disability of the insured’s Parent or Guardian and also the medical expenses incurred as a result of any accident involving any insured Parent or Student/Pupil.
Whereas SurePAY is an e-insurance product that provides some level income security in event of loss of employment. It guarantees the payment of an agreed amount of monthly income up to six (6) months after job loss, he said.
Source: Guardian Newspaper