Staco Insurance Plc has disclosed that its shareholders fund grew by 10.33 percent at the close of business in 2016.
According to the insurer shareholders fund of the company rose from N3.4 billion in 2015 to N3.8 billion in 2016 audited financial statements for the year ended December 31, 2016.
Disclosing this to shareholders at the company’s 21st Annual General Meeting held in Lagos, Chairman of the company, Prince Samuel Turoti said the growth represent a positive solvency margin.
According to him the company, at the end of 2016 financial year, recorded a decline in profit to the tune of N1.8billion. This, according to it, is as a result of foreign exchange fluctuations arising from unfavourable exchange rate of the naira to the dollar on the company’s dollar denominated liabilities – both contractual and operational.
He added that the paid claims in the 2016 operating year to the tune of N1.99billion, of which a substantial part was paid in dollar denomination.
Despite the short-comings resulting from the high exchange rate, the company’s board and management reaffirmed its commitment to turning things around for the better by continuously delivering value and positively affecting the lives of its stakeholders and leveraging best practices.
He further said that they are reviewing the company’s circumstances with a view to make it profitable as soon as possible notwithstanding the current economic saturation of the country.