Lasaco Profit down 30%, After Net Claims Payment Rises By 215%

Directors of Lasaco Assurance Plc still managed to recommend a thee kobo dividend for the year ended December 31, 2017, to shareholders for consideration at the next annual general meeting, down from four kobo in prior year. This was despite suffering a 30% net profit cut, despite the slow 10% rise in gross premium written and 105% jump in net premium underwriting income, after net claims paid ballooned by 215% in the period under review.
According to the result presented to the Nigerian Stock Exchange (NSE), gross insurance premium written by Lasaco Assurance for the year rose to N6.673bn from N6.041bn. , after net claims paid ballooned by 215% in the period under review to N1.962bn.
A breakdown of the figure showed that none-life business contributed N4.407bn or 66.04%l; ad life, N2.266bn or about 44%.
Reinsurance expenses dropped by N1.271bn or 29.85% from N4.258bn in 2016 to N2.986bn; while net underwriting income rose from N1.951bn to N3.992bn; N2.203bn of which came from the non-life segment, while N1.788bn was extracted from “life”.
Underwriting expenses grew to N898.377m from N734.09m; just as decrease in life expense stood at N136.633m from N120.988m; and decrease in health insurance fund from N37.864m to N49.535m.
Annuity fund dropped to N64.502m from N200.2791m; bringing total underwriting expenses to N2.738bn, as against the previous N1.715bn.
underwriting profit climbed 433% up from N235.156m to N1.253bn.
Profit on investment contract rose to N49.413m from N7.618m; unrealized gain stood at N19.283m; investment income increased from N441.141m to N874.674m; followed by other income of N576.425m, down from N2.917bn, representing an 80% decline within the period.
Impairment of financial assets rose to N177.42m from N41.463m; other operating and administrative expense dropped was contained by 28% from N2.416bn to N1.741bn; following which profit before tax dropped 25% from N1.142bn to N854.273m. Profit after tax for the period stood at N661.878m, as against the previous N944.461m. Total comprehensive income for the year fell to N524.416m, down by 55.34% from the N1.175bn reported in prior year, translating to Earnings Per Share of 12 kobo, which dropped from 16 kobo.