LASACO Assurance Plc a composite Insurer has reported a 5 percent increase in profits for the half year (H1) period from January to June 2020, largely as a result of foreign exchange (FX) revaluation gains.
The insurer engages in the provision of various classes of insurance such as general accident, fire, motor, engineering, marine, bond insurances and life assurance businesses.
The Company also transacts insurance business for aviation, oil & gas and other special risks.
LASACO profit after tax came in at N632 million for the period compared to N598 million for the 2019 period.
FX revaluation gains booked under other income surged to N579 million mostly in the April to June period as the Central Bank of Nigeria (CBN) devalued the currency from $1/N306 to $1/N380.
The firm booked gross premium written of N6.94 billion in the six months’ period compared to N6.87 billion in the earlier 2019 period.
Investment income fell by 13.7 percent for the H1 period to N296 million, compared to N343.2 million in the earlier period.
Total assets increased by 15 percent to N21.3 billion from N18.5 billion in December 2019 on the back of an increase in financial assets such as holdings of held to maturity Government bonds which increased by 152 percent to N1.15 billion from N456.9 million in 2019.
LASACO was incorporated on 20 December 1979 under the Company Decree of 1968.
The Company then, known as Lagos State Assurance Company Limited obtained license as an insurer on 7 July 1980 and commenced business on 1 August 1980.
It became a public limited liability Company in 1991 when the Company’s shares were listed on the Nigerian Stock Exchange.
The Company secured a life insurance business license from National Insurance Commission (NAICOM) in 2007.
The Company then separated the life business and transferred the related assets and liabilities to its subsidiary, LASACO Life Assurance Company Limited. On 1 January 2009 LASACO Life Assurance Co. Ltd commenced business.
Major shareholders of LASACO include Ibile Holdings Ltd which owned 2.027 billion shares representing 27.65 percent ownership and Canon Properties & Investments Ltd owners of 931.7 million shares or 12.7 percent of outstanding shares.
LASACO shares are up 10.71 percent in the past year.