The Nation Newspaper

Tag: Law Union

  • Law Union pays N1.6b claims

    Law Union and Rock Insurance Plc’s net benefit and claims increased by 117 per cent, to N1.6 billion at the end of 2018 financial period, its Chairman, Mr. Remi Babalola has said.

    In 2017, it was N0.737 billion.

    Speaking at the company’s 50th Annual General Meeting (AGM) in Lagos, he said the company was pleased to be one of the top claim-paying insurance firms in the country.

    Babalola, however, said the company’s profit before tax fell by 55.4 per cent to N0.490 billion from N1.099 billion made in 2017.

    He stated that in furtherance of its commitment to enrich its shareholders, he said the board of directors recommended a cash dividend of two kobo per share for the 2018 financial year.

    He added that the company’s gross premium written rose slightly by 6.79 per cent from N4.252billion achieved in 2017 to N4.541billion.

    Underwriting profit, according to him, however, dropped significantly by 46.05 per cent to N0.638billion from N1.182billion posted in the preceding year, he added.

    He said the company had remained unrelenting in sustaining high corporate and ethical governance standards in its business, noting that the board had been at the forefront of ensuring total compliance with every directive from the National Insurance Commission.

    He further disclosed the company’s management went through a significant overhaul with the appointment of Mr Ademayowa Adeduro as the new Managing Director/Chief Executive Officer,” he said.

    Speaking on the future outlook of the company, Adeduro said while they anticipate an improved operating economy, their strategic initiatives for 2019 include to begin sales in AutoReg-Courtville franchise that bundles our auto insurance with vehicles licence renewal.

  • Law Union and Rock declares dividends 

    Law Union & Rock Insurance Plc, one of the leading general insurance companies in the country, has paid dividend to its shareholders despite the economic challenge in the country in 2017.

    Its Chairman, Mr. Remi Babalola made this known at the company’s 49th Annual General Meeting at Onikan, Lagos.

    He stated that the company’s profitability grew by 66.8 per cent, adding that it recorded good performance in 2017 with eight per cent growth in its top line over the figure from the previous year.

    He said:“A significant contribution to the profit came from the company’s investment income while its Gross Premium written stood at N4.252 billion compared to N3.936 billion recorded in 2016. Profit before tax of N1.099 billion was achieved compared to N659 million recorded in 2016, which indicated a steady performance improvement of our company. Total assets grew by 16.9 per cent to N10.031 billion from N8.58 billion posted in 2016 financial year with a 28.6 per cent growth in shareholders’ funds from N5.03 billion to N6.47 billion.

    “The company also recorded a giant feat in its general reserves with retained earnings of N704 million from accumulated loss of N24 million recorded in 2016. In recognition of this performance, the company declared a cash dividend of 4 Kobo per share for the financial year.”

    Mr. Babalola said the company is stronger and liquid and will remain committed to meeting its obligations as they fall due.”

    The Chairman further presented the new Executive Director, Technical/Operations, Mr Olasupo Sogelola and Mr. Kunle Aluko, a non-executive director to the shareholders. Both appointment have been approved by the NAICOM.

    Its Managing Director, Mr. Jide Orimolade said the company will not relent in delivery of the best service to the customers.

    “The loyalty of the customers was very instrumental to the consistent growth of the company’s topline in the past few years, which has enabled it to eliminate its accumulated loss and cross to a positive retained earnings in 2017,”Orimolade said.

    Shareholders at the event were  happy as the three retiring directors -Mr. Babalola, Mr. Obinna Onunkwo and Mrs. Funmi Ekundayo were re-elected for another three years.

  • Law Union achieves 60% target

    Law Union and Rock Insurance Plc has achieved about 60 per cent of its bottom line target for 2017, as it recorded N3.53 billion, its Managing Director, Jide Orimolade, has said.

    Orimolade, who made this known during a media parley in Lagos, said the company had a target of N5.2 billion, but was able to achieve about N3.531billion as at November 2017.

    He stated that the company was optimistic of achieving the balance of its target before the end of the year.

    He disclosed that the company has paid over N1.25 billion claims in the period under review, noting that it has reviewed its claims processes to ensure that claims payment is done within a short time and that there are efforts to digitalise claims payment process.

    Speaking further on its financial performance for nine months, he said from January to September 2017, the firm’s gross premium written for 2017, stood at N3.51 billion as against N3.19 billion in 2016. Investment income, N611.86 million; profit before tax, N727.87 million; retailed earning N470.56 million; shareholders’ fund, N6.22 billion and total assets, N10.36 billion.

     

  • Law Union achieves 17% growth in gross premium

    Law Union and Rock Insurance Plc has recorded a gross premium written of N2.76 billion in the half year ended June 30, 2017, an increase of 17 per cent against N2.37 billion recorded in June 30, 2016.

    Similarly, the company’s profit after tax rose by  four per cent in the second quarter from N307. 33 million last year to N318,74 million this year.

    Its Managing Director, Jide Orimolade during a CEO Forum with national insurance correspondents in Lagos.

    Orimolade said there was a high increase in the claims report due to the flooding in the half quarter adding that gross claim paid stood at N622.51 million in the half year ended June 30.

    He said: “Law Union is now committed and strategically positioned to consolidate on her profit earned this year to delight our shareholders and all other stakeholders. Our overall goals for 2017 is to grow our gross premium written by 50 per cent, retain 90 per cent of our existing customers, grow our direct and retail businesses, improve relationship with brokers and other channels, achieve an improved credit rating from A- to A+ by GCR and become the preferred first choice underwriter amongst the general insurance business providers in Nigeria.

    “We have developed and released four products in 2017. They include I-Salute designed to provide support and relieve to officers and their families in event of accidents that result in any or a combination of Bodily injury requiring resulting in medical expenses; Doctor-on-Cover designed to help medical doctors comply with the law as well as  protect them from unforeseen legal liabilities that could prevent them from practicing what they love; GPA is a Group Personal Accident product designed for Schools and Students/Pupils at all levels of education – kindergarten, nursery, primary, secondary and tertiary and SurePAY, an e insurance product that provides some  level income security in event of loss of employment. It guarantees the payment of an agreed amount of monthly income up to six months after job loss. These products fit in to insurance for Small Medium Enterprises (SMEs) and we hope they will contribute to the company gross premium in 2017.’’

    Orimolade continued: “The company is a well-known underwriting firm with a stable outlook and result oriented management. We have numerous strategic initiatives which have contributed immensely to the growth of our financials. The company is not only determined to meeting all her obligations to the policyholders and committed to continue adding values to her esteemed customers through disruptive innovation that delivers seem less, convenient and stress free business ecosystem.’’

  • Law Union declares 100 per cent profit at AGM

    Law Union and Rock Insurance Plc has held its 48th Annual General Meeting (AGM) at the Muson Centre in Onikan, Lagos. The company declared 100 per cent profitability in 2016, while also claiming that the shareholders’ shares rose from N4.458 billion to N5.039 billion, representing 13.03 per cent growth.

    Its chairman and former Minister of State for Finance, Mr Remi Babalola, said the firm achieved marginal increase in its top-line goals, while recording significant growth in the bottom-line objectives last financial year.

    He said the company ended last year with N3.935 billion Gross Premium Written compared to N3.858 billion recorded in 2015. Profit before tax, Babalola said, grew by over 100 per cent from N0.328 billion in 2015 to N0.658 billion. He added that total assets grew by 3072 per cent to N8.58 billion.

    The chairman said the company would maintain its key objective of “unfailing and prompt settlement of all claims”. With Claims Paying Ability (CPA) rating of A-, Babalola said the company paid out N1.454 billion in 2016.

    He said the company obtained requisite regulatory approvals after the shareholders approved its request to raise additional capital by way of private placement to the tune of 1,031,199,000 ordinary share of N0.50 kobo at N0.70 kobo per share.

    He said: “Consequent upon a conditional approval issued by the National Insurance Commission, that the investor’s post-placement position should not exceed 20 per cent of the company’s equity, the placement was 83.3 per cent subscribed, thus bringing the total shares subscribed to 859,000,000 ordinary shares. The additional capital raised is expected to significantly enhance the company’s operations and boost its capacity to play in the oil and gas, and engineering sub-sector of the insurance space.”

    Babalola praised the immediate past chairman of the company, Princess Adenike Adeniran, who retired from the board last year. He said his predecessor elevated the value of the company through the culture of openness and accountability.

    Chief Executive Officer and Managing Director of the company, Mr Jide Orimolade, said the firm’s profitability steadily increased from 2014, noting that repositioning had started in the company to yield more results, especially in the engineering market where the firm has regained dominance.

    Orimolade attributed the company’s success to introduction of strategic initiatives driven by technology. This, he said, gave the company competitive advantage ahead of its competitors and enable it navigate through the turbulent economy with good profitability.

    He said: “Our careful attention on our service delivery to customers’ satisfaction has further given the company respect and recognition in the industry. Our attention would focus on the distribution of our products to the burgeoning middle-class, which has the highest volume. We expect to reap huge premium through retail products, as well as launch new retail products.”

    The AGM featured interactive session between the board of directors and the shareholders. The event also featured election of audit committee members and re-election of directors.

  • Law Union declares 100 per cent profit at AGM

    Law Union and Rock Insurance Plc on Tuesday held its 48th Annual General Meeting (AGM) at the Muson Centre in Onikan, Lagos. The company declared 100 per cent profitability in 2016, while also claiming that the shareholders’ shares rose from N4.458 billion to N5.039 billion, representing 13.03 per cent growth.
    Its chairman and former Minister of State for Finance, Mr Remi Babalola, said the firm achieved a marginal increase in its top-line goals while recording significant growth in the bottom-line objectives last financial year.
    He said the company ended last year with N3.935 billion Gross Premium Written compared to N3.858 billion recorded in 2015. Profit before tax, Babalola said, grew by over 100 per cent from N0.328 billion in 2015 to N0.658 billion. He added that total assets grew by 3.72 per cent to N8.58 billion.
    The chairman said the company would maintain its key objective of “unfailing and prompt settlement of all claims”. With Claims Paying Ability (CPA) rating of A-, Babalola said the company paid out N1.454 billion in 2016.
    He said the company obtained requisite regulatory approvals after the shareholders approved its request to raise additional capital by way of private placement to the tune of 1,031,199,000 ordinary share of N0.50 kobo at N0.70 kobo per share.
    He said: “Consequent upon a conditional approval issued by the National Insurance Commission, that the investor’s post-placement position should not exceed 20 per cent of the company’s equity, the placement was 83.3 per cent subscribed, thus bringing the total shares subscribed to 859,000,000 ordinary shares. The additional capital raised is expected to significantly enhance the company’s operations and boost its capacity to play in the oil and gas, and engineering sub-sector of the insurance space.”
    Babalola praised the immediate past chairman of the company, Princess Adenike Adeniran, who retired from the board last year. He said his predecessor elevated the value of the company through the culture of openness and accountability.
    Chief Executive Officer and Managing Director of the company, Mr Jide Orimolade, said the firm’s profitability steadily increased from 2014, noting that repositioning had started in the company to yield more results, especially in the engineering market where the firm has regained dominance.
    Orimolade attributed the company’s success to the introduction of strategic initiatives driven by technology. This, he said, gave the company competitive advantage ahead of its competitors and enable it navigate through the turbulent economy with good profitability.
    He said: “Our careful attention on our service delivery to customers’ satisfaction has further given the company respect and recognition in the industry. Our attention would focus on the distribution of our products to the burgeoning middle-class, which has the highest volume. We expect to reap huge premium through retail products, as well as launch new retail products.”
    The AGM featured interactive session between the board of directors and the shareholders. The event also featured election of audit committee members and re-election of directors.

  • Law Union pays N3.3b claims, grows profit by 100%

    Law Union and Rock Insurance Plc has paid claims in excess of N3.3 billion between 2015 and 2016, despite the economic recession in the country.
    Similarly, the underwriting firm paid a total of N380 million as claims in the first quarter of the year, representing a 24 percent increase in what the company paid in the same period of year.
    Managing Director, Jide Orimolade, made this known during a CEO Forum with the National Association of Insurance and Pension Correspondents (NAPICO), in Lagos.
    Orimolade disclosed that the firm’s Profit after Tax further grew by 100 percent at the end of its financial year ended December 31, 2016 as it rose from N280.91 million in 2015 to N561.85 million in the period under review.
    He said the underwriting result appreciated to N1.25 billion in 2016 when compared with N1.14 billion achieved in the corresponding period of 2015, indicating 10 percent growth.
    He said: “Despite the 2016 economic recession, which affects the growth of all sectors, we have been able to grow our gross premium written income slightly by two percent. The giant stride of the company in Profit after Tax in 2016 galvanised it positively by reducing the previously accumulated loss by 95 percent from N468 million in 2015 to N24 million in 2016.
    “We plan to grow our gross premium income by 50 percent in 2017. We see a lot of opportunities in the economy, especially infrastructure, rail system that is being introduced by the Federal Government, local content being enforced by NAICOM among others. In terms of retail business, we intend to launch more products in 2017. We plan to retain 90 percent of our customers at minimum and grow our direct and retail business in 2017. We believe that retail is the future of insurance business. We will also improve relationship with brokers, agents and other channel of distributions such as bancassurance, e-market, social media platforms etc.
    “We also plan to achieve an improved credit rating from A- to A+ by GCR, become preferred first choice underwriter amongst the general insurance business provider in Nigeria and commitment to improved service delivery to customers and policy holders. We have been looking at our brand visibility nationwide through various brand equity strategic architecture and development of three new products in the retail business and agricultural insurance business,” he assured.