Law Union targets middle-income earners to drive growth, revenue
LAW Union & Rock Insurance Plc has said that it will focus on distribution of its products to the burgeoning middle class during the course of 2017 financial year to drive growth and profitability.
The Managing Director, Mr. Jide Orimolade, disclosed this at the company’s 48th Annual General Meeting, AGM, in Lagos.
He said that the company also expects to reap huge premium income through retail products as well as launch of additional retail products.
He noted that the effort to reposition the company has started yielding result as the company was able to regain its dominance in the engineering sector. He attributed the leading position in engineering sector to the various strategic initiatives were driven by state of the art technology that gave the company advantage over competitors and resulted in good profitability in 2016.
Speaking earlier, the chairman, Mr. Remi Babalola, said that the Board is positioning itself for the risk based supervision and risk based capital regime the National Insurance Commission, NAICOM, planned to implement this, and assured that the Board would ensure that the company’s capital requirements are in line with her risk profile. “We are confident that at a minimum, we will meet the expected risk based capital requirement,”he said.
Speaking on the outlook of the sector, Babalola said: “In 2017, we expect a more challenging insurance-risk-business environment. The insurance landscape will be exposed to rise in claims cost occasioned by higher cost of repairs and replacements of assets, negative pressure on premium rates created by low insurance demand and unhealthy competition, increase in bond risks, engineering risks and contract related exposures.”
He disclosed that the private placement where company planned to raise about N793.87 million earlier in the year was 83 per cent subscribed.
He explained that the company paid N1.45 billion total claims during the year in line with its mantra of ‘unfailing and prompt settlement of all claims’.
A peep into the company’s financial performance for the year ended December 31, 2016, showed that it grew gross premium written by from N3.858 billion in 2015 to N3.935 billion. It doubled the profit before tax from N0.328 billion to N0.658 billion. The total assets grew by 3.72 per cent to N8.58 billion, while the shareholders’ fund rose by 13.03 per cent from N4.458 billion to N5.039 billion in 2016.
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