Law Union and Rock Insurance Plc recorded a 14.65 per cent growth in gross premium for the financial year ended December 31, 2010.
According to the financial results announced by the management at its 42nd Annual General Meeting in Lagos, the company recorded a gross premium income of N4.05 billion for the year ended December 31,2010 as against N3.53 billion recorded in 2009 representing an increase of 14.65 per cent.
The company also recorded marginal increase in profit before tax of N384.74 million in 2010 from N351.62 million posted in 2009, representing 9.27 per cent growth.
The chairman of the company, Princess Adenike Adeniran, while addressing shareholders at the AGM, said the company’s claims increased marginally by 6.02 per cent from N746.91 million in 2009 to N792.27 in 2010 adding that the operating cost rose appreciatively due to strategic expansion initiatives, which would soon start to yield dividend.
Adeniran noted that the level of provision for doubtful accounts dropped significantly in the year under review, thus posting a modest increase in profit before tax of N384.27 million from N351.62 million in 2009.
Speaking on the company’s future outlook, she noted that there were several lessons to learn from the recent global economic crisis which has also brought to the fore a number of critical issues which were shaping and redefining Nigeria’s financial sector’s landscape.
“The board and management have spent a considerable amount of time reflecting deeply on these issues and their future implication for your company with the aim of putting strategies in place that would yield benefits to all stakeholders, especially you our esteemed shareholders in a sustainable manner,” Adeniran said.
The company’s managing director,Mr. Yinka Bolarinwa, speaking in the same vein said the company was focusing on acquiring and setting up subsidiaries operating in other sectors of the economy in order to enhance its earnings.
Bolarinwa noted that the insurance firm was also planning to expand its investment portfolios by exploring opportunities in West Africa sub-region, adding that it has equally concluded arrangements to establish its branch network in strategic states of the federation.
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