Staco Insurance posts N6.8b gross income in 2012

The Chairman of Staco Insurance Plc, Mr Dere Otubu, said the company posted N6.8 billion Gross Premium Income in the financial year ended Dec. 31, 2012. Otubu made the announcement at the 18th annual general meeting of the company in Lagos. He said that the figure showed an increase of N320 million over the N6.48 billion the company posted in 2011.

He said that profit before tax and exceptional items rose to N310.76 million in 2012 from a loss of N462.97 million in 2011. “Our underwriting result is N3.12 billion in 2012 from N3.06 billion in 2011,” he said. Otubu said that no dividend would be paid to shareholders for 2012 as the profit would be retained to promote growth of the company.

He said that the adoption of the International Financial Reporting Standard (IFRS) in the preparation of the firm’s financial statement in 2012 impacted positively on the company’s capital base.

The chairman said the IFRS gave rise to capitalisation of the company to position it to compete in the industry. He said the company had also acquired land for the construction of an ultra-modern head office complex. The company’s Managing Director, Mr Sakiru Oyefeso, said the company would continue to focus on its marketing strategy to enhance its products and service delivery.

He said that the company rebounded into line of profit through the adoption of Enterprise Risk Management (ERM). ERM enables underwriters to operate on risk based analysis to determine intended results of their operations. Oyefeso said that the company also relied on skill, structure, system, staff style and shared value for effective performance.

The shareholders were, however, not pleased with the non-payment of dividend for the 2012 financial year. One of the shareholders, Mr Yusuf Agboola, urged the company’s board and management to ensure that dividend was paid to shareholders in the 2013 financial year.