Staco Insurance Returns to Profit in First Quarter

After a long hiatus, Staco Insurance Plc has released its first quarter 2019 results which showed the insurer returned to the path of profitability.

The insurer was the worst culprit of companies who delayed in filing their financial statements, which exposed them to sanctions.

However, Staco Insurance has given investors a glimmer of hope of capital returns as it posted a profit after tax (PAT) of N315.27 million in the first three months of 2019, from a loss after tax of N507.38 million.

The company would not have posted a profit given a sharp fall in revenue save for write back in claims to a tune of N185.84 million, which cast a doubt on payments to policyholders.

With a combined ratio of 56.29 percent, Staco Insurance is earning more revenues from its collected premiums relative to the claims it pays out.

A combined ratio below 100 percent suggests the insurer is profitable, as it’s collecting more in premiums than it’s paying out in claims and expenses. Conversely, a combined ratio above 100 percent indicates an underwriting loss, meaning the insurer is paying out more than it’s earning from premiums

Staco Insurance posted an underwriting profit of N720.32 million in MARCH 2019, from a profit of N858,000

The insurer flounders at the top line (sales), recording slow growth in each business segment.

Gross Premium Written (GPW) reduced by 34.59 percent to N1.04 billion in the period under review from N1.59 billion as at March 2018.

Gross premium income was down 40.25 percent to N782.54 billion in March 2019 from N1.30 billion the previous year.

Net premium income dipped by 31.94 percent to N671.12 million in the period under review from N986.12 million the previous year.

About the Company  

Staco Insurance Plc is a Nigeria-based company, which is engaged in the business of general insurance and special risks.

The Company’s segments include Fire, General Accident, Motor Vehicle, Oil and Gas, Marine, Aviation, Bond, and Engineering. Its generic products category includes Accident, Transportation, Fire & Bond, and Special Risk.

Its travel insurance covers property damage coverage, personal property coverage, liability coverage, and temporary living expenses coverage. Its life insurance provides coverage for home and personal property against damage, theft, and liability.