Law Union Insurance doubles profitability to N660m

Despite a generally acknowledged economic hardship in 2016, Law Union and Rock Insurance Plc increased its year-over-year profit before tax (PBT) to N0.658bn in the year.

Speaking at the company’s 48th Annual General Meeting (AGM) held in Lagos, its Chairman, Remi Babalola added that the company increased marginally in its top-line while it recorded significant growth in the bottom-line.

Specifically, the insurance company ended the year N3.935bn gross premiums written compared to N3.858bn recorded in 2015.

Its total assets also grew marginally by 3.72 per cent to stand at N8.58bn last year while shareholder’s funds appreciated by 13.03 per cent from N4.458bn to N5.039bn in 2016.

Meanwhile, he explained that the additional capital raised was expected to significantly enhance the Company’s operations and boost its capacity to play in the oil and gas subsector of the insurance space.

Babalola said, “The Company’s mantra remains ‘unfailing and prompt settlement of all claims’ with claim paying ability (CPA) rating of A. Law Union paid out N1.454bn in 2016.

In his report to the shareholders, Babalola said by the approval of the shareholders of the company to raise additional capital by way of private placement to the tune of 1,031,199,000 ordinary shares of 50 kobo at 70 kobo per share, requisite regulatory approvals were approved for the placement issue.

“Consequent upon a conditional approval issued by the National Insurance Commission (NAICOM), the investor’s post -placement position should not exceed 20 per cent of the company’s equity, the placement was 83.3 per cent, thus bringing the total shares subscribed to 859,000,000 ordinary shares,” he explained further.