2019 profit drops 57% at LASACO, so shareholders getting only 5k dividend
Q1’20 profit up 3.85% to N266.37m
FULL YEAR PROF IT FOR 2019 was down 57 percent at LASACO Assurance Plc, but shareholder will still get a 5 kobo per share dividend, it has emerged following the release of insurer’s performance for the year in question stating that the dividend is a proposal from the board of directors to be approved by shareholders meet.
LASACO, one of the longstanding operators in the Nigerian insurance market with significant share of key federal and state governments insurance businesses, multinational and private companies underwriting businesses in major sectors of the economy, released its annual report for the year ended 31 December 2019 posting profit of N315.745 million, a 57 percent drop from the N736.279 million it made in the previous year
Other details of the financial show that total assets of the company improved by nine percent to N18.510 billion from N 17.052 billion in 2018; total liabilities rose by 21 per cent to N10.337 billion from N8.569 billion while shareholders’ funds dropped by four percent to N8.174 billion from N8.484 billion.
Released to the Nigerian Stock Exchange the financial performance shows premium income to have risen by four percent N9 billion achieved in 2018 to N9.3 billion in 2019. Net premium income increased by 28 percent from N4.62 billion in 2018 to N5.90 billion in 2019; net claims expenses increased by 21 percent from N1.80 billion in 2018 to N2.2 billion in 2019. Underwriting expenses increased by 46 percent from N1.4 billion in 2018 to N2.1 billion in 2019.
Still hot off the press, the company followed the 2019 full year release of its financial with the release of its first quarter result for 2020, which shows that it raised its profit by a modest 3.85 percent in the quarter.
For the period ended 31st March, 2020 the company said in a report sent to the Nigerian Stock Exchange (NSE), that profit after tax was N266.371 million, a growth of 3.85 per cent when compared with N256.503 million in Q1 2019.
The profit growth was despite a decline in gross premium to N4,000,649,00 from N4,521,439,000.
Incorporated in December 20, 1979, and then known as Lagos State Assurance Company Limited, it obtained license as an insurer on July 7, 1980 and commenced business on August 1, 1980. It became a public limited liability Company in 1991 when the company’s shares were listed on the Nigerian Stock Exchange. The company secured a life insurance business license from National Insurance Commission (NAICOM) in 2007. The company then separated the life business and transferred the related assets and liabilities to its subsidiary; LASACO Life Assurance Company Limited On January 1, 2009 LASACO Life Assurance Co. Ltd commenced business. The company operates from its corporate office in Lagos and whilst it maintains branches in major cities of the federation.