Law Union & Rock Insurance triumphs COVID-19 to record 80% jump in half year profits

NIGERIA – Law Union & Rock Insurance Plc has triumphed over the challenges posed by COVID-19 pandemic to record an 80% profit in the first half of 2019.

 Law Union & Rock said that its profits for the first half of 2020 rose to N185.8m (US$0.48 million) from N102.7m (US$0.27 million) recorded during a similar period in 2019.

The Managing Director of the company, Ademayowa Adeduro, while commenting in the results said the impressive performance was a reflection of efficiency in asset utilisation and management cost control.

Law and Union noted that its underwriting profit grew to N485.5m (US$1.26 million) from N364.5m (US$ 0.95 million) in 2019, representing a 33.17 per cent increase in performance for the period.

The Insurer’s total assets grew by 4.5 per cent from N12.87bn (US$ 33.50 million) in H1 2019 to N13.44bn (US$34.98 million) in H1 2020.

Shareholders fund and investment properties results both recorded double digit growth from N6.4bn (US$ 16.66million) to N7.3bn (US$19 million) and from N1.39bn (US$ 3.62 million) to N1.82bn (US$4.74 million), representing a growth of 14.74 and 31.04 per cent respectively.

Net claims expenses on the other hand, decreased by nearly 25 per cent from N775m (US$2.02 million) to N585m (US$1.52 million), while insurance contract liabilities reduced by 5.32 per cent, from N4.77bn (US$12.42 million) to N4.51bn (US$11.74 million).

This indicated that the management had adequately shored up its underwriting efficiency accordingly, despite paying over half a billion naira in claims so far.

Law Union & Rock stated that the reduction in net claims expenses, further indicated that the company was able to write more profitable business, despite average claims costs rising in the industry.

The firm’s MD said the company was pleased with its 2020 half-year financial, despite the challenges within the operating environment, especially with the COVID-19 pandemic.

He said the same level of performance into the following quarters would be sustained, to ensure commensurate growth for the year 2020.

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