Focused on strengthening its operations and taking advantage of emerging opportunities in the business environment, Staco Insurance plc has ploughed back over N300 million profits generated in 2012 financial year. This according to the company would enable its boost growth for enhanced shareholder value.
Staco Insurance in the 2012 financial year recorded a written gross premium of N6.8 billion as against N6.48 billion in 2011, despite the challenging operating environment.
The company’s net premium written also increased from N5.99 billion in 2011 to N6.28 billion in 2012, while the underwriting result was N3.12 billion in 2012 as against N3.06 billion achieved in 2011.
STACO’s profit before tax and exceptional item rose to N310.76 million in 2012 from a loss of N462.97 million in 2011.
The adoption of International Financial Reporting Standards (IFRS) in the preparation of financial statements equally necessitated adjustments that impacted on the capital base of the insurance company during the out gone year.
Dere Otubu, chairman of the Company who disclosed this at its 18th Annual General Meeting held in Lagos said the Company has ploughed back the profits recorded in 2012 to promote growth and position the company strategically for the ever increasing competition in the financial services sector.
Rather than declaring dividends, the board believes that given the daunting challenges facing the underwriting firm, it is better to embark on relentless investment and ploughing back of profits into the company to promote growth.
Otubu added that the development has given rise to the need for adequate capitalisation to position the company in a good stead to compete favorably in the nation’s insurance sector.
According to him, the company has acquired two properties adjoining its present head office location for the construction of an ultra modern head office complex to position strategically for the upcoming keen competition in the years to come.
He however commended the National Insurance Commission (NAICOM) for intensifying its enforcement of regulations and guidelines during the year under review to maintain global best business practices and improve the confidence of the insuring public, as well as investors in the insurance industry.
Sakiru Oyefeso, managing director, STACO Insurance plc said the company will continue to pursue a marketing strategy focused at enhancing product offerings, excellent operations, relationship marketing and exceptional service delivery to our customers.
“Our operations are enhanced by the adoption of Enterprise Risk Management (ERM) philosophy. The philosophy enables our underwriters to operate on risk based analysis to determine the intended consequence in our operations. In addition, 7 ‘s’ principles of strategy, skill, structure, system, staff, style and shared value is adopted for effective performance.”
Oyefeso stated that Staco Insurance future outlook is bright with a strategic focus in growing the Company’s business. “The management has put appropriate strategies in place to strengthen its core business of insurance and in spite of the intermittent global financial crisis and economic upheavals in the country, we are confident that your Company has a bright, robust and prosperous future with incredible opportunities to grow and build long term values for all stakeholders and remain on top of the competition.”
By: Modestus Anaesoronye