Shares of Lasaco gained some 7 percent on Monday after the Nigerian Stock Exchange ( NSE) announced it had lifted suspensions placed on trading on the shares of the insurer which had failed to meet up with the regulatory timeframe for making available its full-year 2018 Audited Financial Statement.
The exchange had on 2 July 2019 issued a market bulletin wherein it notified dealing members of the suspension of Lasaco, alongside 10 other companies which ran afoul of exchange regulations.
However, the NSE noted that Lasaco had satisfied exchange requirement hence was reversing the ban which had restricted trading in the company’s shares.
“The dealing members are hereby notified that the suspension placed on trading on the shares of Lasaco Assurance Plc was lifted today, Monday, 15 July 2019,” the NSE said.
According to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange, if an Issuer fails to file the relevant accounts by the expiration of the Cure Period, the Exchange will issue a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period.
Thereafter, the exchange would suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within twentyfour (24) hours of the suspension.
Rule 3.3 of the Default Filing Rules, however, provides that: “The suspension of trading in the Issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.
For full-year 2018, Lasaco grew its profit by 11 percent from N661.88 million to N736.28 million, its biggest profit since 2016, driven by a 20 percent surge in gross insurance premium income in the year.
Gross premium income rose 35 percent to N9 billion although unearned premium increased by 77 folds to N989 million, weighing on Lasaco’s gross insurance premium income.
Net insurance premium income rose 26 percent to N4.6 billion as the insurance company’s reinsurance expense increased 14 percent to N3.4 billion. However, a 91 percent growth in fees and commission income helped Lasaco post a net underwriting income of N5.22 billion as against N3.99 billion noted in 2017, a 35 percent rise year-onyear. Net claims paid fell 8 percent.
Total underwriting expenses for Lasaco rose to N3.2 billion, 15 percent more than it previously recorded in 2017. However, Lasaco was able to grow its underwriting profit by 65 percent to N2.06 billion in 2018.
The insurer noted a mixed performance in other income-generating segments and was able to shake off the effect of a 24 percent increase in administrative expenses to record a 12 percent increase in its profit before tax.
On the back of its performance, earnings per share rose to 13 kobo from 12 kobo year on year. Shares of Lasaco gained 6.9 percent to close at 31 kobo per share while the broad market fell by 0.79 percent.
Editor: LOLADE AKINMURELE ([email protected]) Graphics: David Ogar
