Lasaco Assurance Plc continues to be well capitalised relative to risk taken as the insurer’s solvency ratio is in excess of the regulatory minimum of 100 percent.
The company solvency ratio at 227 percent as at June 2022, with a positive solvency margin of N11.38 billion, according to data gathered from the financial statement.
In the insurance industry, the % Solvency ratio is an expression of efficient capital management.
The indicator reflects the ability of an insurance company to meet its obligations to beneficiaries and policy holders.
By indicating whether an insurance company’s cash flow is sufficient enough to cover its long-term liabilities, the % Solvency ratio is also an important measure of risk control and risk mitigation in the insurance industry.
Investors are interested in the solvency ratio because it shows the extent to which an insurer can absorb claims and pay dividends.
Analysts say Lasaco Assurance consistent profitability even amid unfavorable underwriting environment steady revenue are responsible for strong capital position.
Little wonder, International rating agency, GCR, gave the company a ‘stable outlook’ ranking, due to its prudence and professional discipline.
The award, it added, showed that the company’s earnings were at an intermediate level while its portfolio was expected to grow as a result of the strategic plans put in place to support growth.
Lasaco Assurance’s gross premium income was up 15.28 percent in June 2022 from N6.04 billion as at June 2021.
Net premium income (NPI) increased by 24.12 percent to N4.70 billion from N3.79 billion the previous year.
Net income was up 26.57 percent to N372.33 million in the period under review from N294.17 million as at June 2021.
The company’s combined ratio improved to 119.95 percent in the period under review from 127.95 percent the previous year. However, these figures are above the 10o percent threshold.
It paid N1.80 billion in claims expenses in 2022, which is 12.68 percent higher than 2021’s N1.60 billion.
Claims expenses reduced to 38.32 percent in the period under review from 42.21 percent the previous year.