Law Union & Rock Insurance attributes success to dynamic innovations

One of Nigeria’s oldest insurance company, Law Union & Rock Insurance PLC has attributed the milestones achieved in 2016 financial year to various strategic initiatives by the firm’s management team.

The insurance company noted that in spite of the harsh economic environment in which it operated, its profit after tax for 2016 grew by 100 percent. This in effect reduced the company’s previously accumulated loss by 95 percent.

This disclosure was made by the company’s Managing Director, Mr Jide Orimolade while addressing newsmen in Lagos on Wednesday.

In his words, “Our company was able to weather the economic storm through business resilience, innovations and dynamic underwriting architecture by closing the year with positive growth courtesy of various strategic initiatives.

“Our profit after tax grew by 100 percent from N280.91m in 2015 to N561.85m, whilst claim ratio dropped from 67 percent in 2015 to 49 percent in 2016. Our giant stride in profit after tax galvanised us positively by reducing the previously accumulated loss by 95 percent from N468m in 2015 to N24m in 2016.”

Orimolade also noted that a South Africa based rating agency, Global Credit Rating (GCR) confirmed the company’s financial capability and claim paying ability. The agency, he said, “accorded Law Union and Rock Insurance Plc with A- claim paying ability from BBB+. The agency also adjudged the company with Stable Outlook.”

Part of the company’s achievements, according to him was the development and release of two new products in 2016.

“Two products were customised and deployed into our bouquet after NAICOM approval. The new products – Home Guard – which was designed to provide insurance solutions for tenants of residential buildings in Nigeria and, I-Care – a personal accident insurance solutions designed to provide the needed succour in times of need resulting from accident to the policyholders, are targeted at the middle/lower income earners.”

The company’s Head of Compliance and Enterprise Risk Management, Monday Utomwen said the company is working in line with the regulators Risk Based Supervision which he said has been put in place long before it was pronounced by the regulators.

Olufolake Afolabi, the Chief Technical Officer said the turn around time for payment of claims is between one to five days. She noted that about N1.5bn was paid in claims in 2016. She further explained that about N380m have been paid in first quarter of 2017, a figure which she noted represents 24 percent increase above what was paid during the same period for 2016.

The Managing Director gave assurance that the company will continue to improve on its services as they are focusing on regaining their position as one of the top five insurance company in the country.

He said they would continue to build on the four pillars which have seen them record successes over the years. The pillars according to him are people, products, technology and service.