Law Union & Rock to Pay N172m Dividend as Profit Rises 67% to N910m

The Board of Directors of Law Union and Rock Insurance Plc has recommended a dividend of N172 million for approval by its shareholders at its next annual general meeting(AGM). The dividend, which translates to four kobo per share followed an impressive performance for the year ended December 31, 2017.

The insurance firm posted a profit before tax (PBT) of N1.099 billion, representing a 66.8 per cent growth from the PBT of N658.643 million recorded in 2016. Also, its profit after tax jumped by 62 per cent to N910million from N561.851million recorded in 2016 financial year.

According to the company, the growth in the bottom-line was mainly driven by its investment income, signposting the company’s improved liquidity.

A further analysis of the results showed that gross premium written stood at N4.252 billion representing, an eight per cent modest improvement from N3.936billion recorded in 2016. The company’s total assets also recorded 16.9 per cent growth to hit N10.031billion from N8.58billion reported in 2016 financial year. Similarly, the shareholders’ funds grew by 28.6 per cent from N5.03 billion to N6.47 billion.

Law Union & Rock Insurance Plc’s earning per share rose by 31 per cent to 21 kobo from 16 kobo in 2016. Hence, the company is to pay a dividend for the 2017 financial year, as against none in the 2016.

Also, in demonstration of its commitment to reward its human capital for its invaluable contribution to the company’s performance, the board has set aside 7.5 per cent of the 2017 PAT as profit sharing pool for all members of its staff.

The company has consistently posted improved incremental growth within the last three financial years, with the 2017 performance recording the highest improvement.

Meanwhile, trading at the stock market yesterday remained bearish as the Nigerian Stock Exchange All Share Index (NSE ASI) depreciated by 0.26 per cent to close at 40,749.86, while market capitalisation ended lower at N14.72 trillion.

The depreciation recorded in the share prices of Ecobank Transnational Incorporated, Flour Mills of Nigeria Plc, FBN Holdings, Transcorp, and UAC of Nigeria were mainly responsible for the loss recorded in the index.

In all, 18 appreciated depreciated while 26 stocks depreciated. LASACO Assurance Plc led the price gainers with 5.8 per cent trailed by Fidelity Bank Plc with 5.7 per cent, just as Access Bank Plc and May & Baker Nigeria Plc chalked up 4.8 per cent apiece.

Conversely, Dangote Flour Mills Plc led the price losers with 9.5 per cent, followed by Multiverse and Sovereign Trust Insurance Plc with 9.1 per cent each.