TheCable

The management of Lasaco Assurance says the firm is committed to responding to the needs of its shareholders and clients.

Speaking at the unveiling of the 2021 annual reports and financial statements, Razzaq Abiodun, the company’s managing director and chief executive officer, stated why dividends weren’t paid to shareholders in the 2021 business year.

He said the company invested the funds to create better investment opportunities for its stakeholders and to improve the brand of the organisation.

He said based on the envisaged profitability in 2022, the company will be able to pay dividends as and when due.

“Over the last four years, we have been paid over N1.4 billion in terms of dividends but the reason for not paying dividends this year is a strategic move because we had to improve the brand, invest internally to create better investment opportunities so that going forward better dividends will be paid,” he said.

“So, it is with the assurance that even though we don’t pay dividends this year, traditionally we have paid over the years. Based on what we have put in place for the current year, we will pay dividends in the next year.

“If you look at the claim’s payments, particularly from 2020 to 2021, the company paid claims in the excess of N8 billion, which is something that is quite impressive, even though it had a negative impact but we are an insurance company and that had an impact on our profitability. We could not have done better because we had to respond to the needs of shareholders who had put trust in us.

“Going forward, we are not expecting the kind of issue that happened in 2021, particularly from the #EndSars and the issue of pandemic. We believe that 2022 is going to be a better year and the profitability of the company will be better and the dividends will be paid.”

On her part, Teju Phillips, Chairman of Lasaco Assurance, said the pandemic and the #EndSars protest had a negative effect on the profitability of the company.

She said the company had to pay lots of claims in 2021, adding that it was a “gloomy year” for the company.

“With the pandemic year, it was even very serious in 2021 because that was when all the claims came in to be paid. The #EndSars disaster all over. The 2021 pandemic was serious for every company globally, it was a gloomy year for companies and for us 2021 the claims came heavily,” she said.

“We are in Lagos state and we have our tentacles in terms of insurance all over, so the claims were quite biting but we were able to meet up our obligations because that’s the essence of retaining your potentiality in the insurance industry and you’re for sustainability for people to do businesses with you.”

During the event, Sani Ndanusa, the Independent director, and Akin Doherty, the non-executive director of the company, were voted in for a second term of two years as member of the board.

Speaking on his re-emergence, Ndanusa said it shows that the management and shareholders of the company believes in him.

He promised to continue putting in his best to ensure the profitability and sustainability of the insurance company.

“I specifically thank the shareholders, the entire management and the board of Lasaco insurance for giving me yet another opportunity to serve for another term of two years. That shows that I should do more than I have been doing,” he said.

“I’m glad that my efforts have been appreciated fully and I can assure the board, management and especially the shareholders that we will put in everything within our capacity and power to make sure that Lasaco remains an insurance company to be reckoned with.”

Also present at the event were Jamiu Saka, non-executive director; Roland Oshinusi, deputy managing director; and Ademoye Shobo, technical executive director, amongst multiple shareholders.