LASACO Maps Out Strategies for Growth, Profitability

The Board and Management of LASACO Assurance Plc have put together strategies that will bring about transformation to the company in the country.

These strategies, according to the company’s board of directors, include the adoption of International Financial Reporting Standard (IFRS), Enterprise Risk Management (ERM), Quality Management System (QMS) and Merger and Acquisition (M&A) which will help the company in its quest to chart the course of leading edge innovation and transformation.

Addressing shareholders at the company’s 31^st Annual general Meeting, held at Mic Com Golf and Resort, Ada, in Osun State, Chief Akin Edward Leigh explained that although the company’s profit margin was negatively affected by the nation’s economic situation , the board and management were leaving no stone unturned to ensure that shareholders ‘expectations were always met.

For this reason, Chief Leigh said that the company would implement its QMS in order to improve its business and operational excellence, increase customer satisfaction and become more competitive.

According to him, no question about it, the Nigerian economic climate in 2010 was very tough. Our company faced many challenges, but was still able to record profit though marginal.”

The company posted a gross premium income of N2. 045 billion in 2010, as against N 3. 302 billion posted in 2009 which represented a decline of N 1.257 billion or 38. 07 percent, while earned premium went down from N2.366 billion in 2009, to N 1. 628 billion in 2010, which also represented 31.19 percent decrease.

Explaining the rationale behind the performance, Chief Leigh said that the decrease in its premium and others was mainly due to losses suffered on some lines of business in 2010, adding that the loss recorded in its financial account largely reflected the poor performance of the national economy, loss of business to stiff competition and discounted rate cutting in the industry, as well as global economic crisis.

The company incurred a total claim of N 406,185 million in 2010, as against N 414.613 Million in 2009 while profit before and after tax in 2010 were N322.560 million and N249.658 million respectively as against N 658.916 million and N498.231 million in 2009, which represented a decline by 51 percent and 50 percent, respectively.