The Law Union & Rock Insurance Plc, LUR, has said that the company’s Profit After Tax grew by 100 per cent from N280.919million in 2015 to N561.851 million in 2016.
The company’s claim ratio dropped from 67 percent in 2015 to 49 percent in 2016, due to the various strategic initiatives and prudent underwriting of the company, despite that things were difficult last year due to the fallen oil price and the militancy in the Niger Delta.
The Managing Director of Law Union & Rock Insurance Plc, Jide Orimolade, who revealed the figures while presenting the company’s scorecard to Insurance Journalists at a media parley today in Lagos, said that the company was able to grow their gross premium by 2 percent despite the economic recession of 2016, and the harsh economic operating environment coupled with persistent increase in inflation which greatly affected the purchasing power of policyholders.
Orimolade added that the underwriting result equally grew by 10 per cent to N1.254billion from N1.144billion in 2015 and that the company is now committed and strategically positioned to consolidate on her profit earned this year to delight shareholders and all other stakeholders.
He further said that Global Credit Rating (GCR), a South African Rating Agency report confirmed the company’s financial capability and claim paying ability.
According to him, The agency accorded the company A- claim paying ability from BBB+ in 2015 and that the agency also adjudged the company with a stable outlook.
The LUR boss said that the total claim paid out in 2016 was N1.43billion in 2016, slightly less than the amount paid out in 2015. He also added that about N380million has been paid as claims in this first quarter of 2017, which was more than what was paid in the first quarter of last year.
Speaking further on the company’s strategic innovative milestone achievement in 2016, the managing director said that the strategic innovation were majorly driven by ICT, adding that the technologies have been able to help drive the payment process by eliminating financial risk, because the products are deployed in a tangible fashion with key security features that gives the company edge over competition.
He explained that the robust and seamless technology has enabled the company grew the retail business production by 9 per cent despite the prevailing economic constraints in the business terrain.