Leading underwriting firm, Law Union & Rock Insurance Plc has sustained its growth in 2019, recording over 80 percent growth in profit for half year 2020. The company achieved this despite a marginal drop in top-line, having tamed management, reinsurance and Net Benefit Claims costs.
According to management, Law Union posted an 80.89 percent increase in Profit after Tax in its 2020 half year financial accounts, rising from N102.7 million in 2019, to N185.8 million. A reflection of efficiency in asset utilization and management cost control.
Underwriting Profit grew to N485.5million from N364.5million in 2019, representing a 33.17 percent increase in underwriting performance for the period. Total assets grew by 4.5 percent from 12.87 billion in 2019 to 13.44 billion half-year 2020.
Further, shareholders fund and Investment properties results both recorded double digit growth from N6.4 billion to N7.3 billion and from N1.39billion to N1.82billion; representing14.74 and 31.04 percent half-year growth respectively.
On the other hand, Net Claims Expenses decreased by nearly 25 percent from N775million to N585million,as well asInsuranceContract Liabilitiesreducing by 5.32 percent, from N4.77billion to N4.51 billion.This indicates that the management has adequately shored up their underwriting efficeincy accordingly, despite paying over half a billion Naira in claims so far. The reduction in Net Claims Expenses, further indicates that the company was able to write more profitable business, despite average claims costs rising in the industry.
Further analysis showed that the company achieved 17 percent growth on Return on Assets, 31 percent Return on Equity and over 100 percent of Premium Written was earned.
Commenting on the result, Ademayowa Adeduro, the managing director, said the company was pleased with its 2020 half-year financial, despite the challenges within the operating environment, especially with the COVID-19 pandemic.
However, they intend to do better in second half-year 2020 results indicates that the company will sustain the grow. He further made a statement of intent that the same level of performance into the following quarters would be sustained, to ensure commensurate growth for the year 2020.
According to him, these are all good indices showing the company is healthy and growing.