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The Board of Directors of Law Union and Rock Insurance Plc have recommended a 4Kobo per share dividend for approval by its shareholders at its next annual general meeting.
This is contained in the Company’s audited financial statements for the year ended December 31, 2017 which was approved by the National Insurance Commission on March 29, 2018
LUR posted a Profit Before Tax of N1.099billion, representing a 66.80 percent growth from the PBT recorded in 2016 performance. Also, its profit after tax jumped by 62 percent to N910million from N561million recorded in 2016 financial year. The growth in the bottom line was mainly driven by its investment income, signposting the company’s improved liquidity.
The Gross Premium Written stood at N4.252billion representing an 8 percent modest improvement from N3.936billion recorded in 2016. The Company’s total assets also posted 16.90 percent growth as it stood at N10.031billion from N8.58billion reported in 2016 financial year. Also, the Shareholders funds grew by 28.60 percent from N5.03billion to N6.47bilion.
Within the same period, its earning per share rose by 31 percent to 21Kobo from 16Kobo reported in 2016.
In demonstration of its commitment to reward its human capital for its invaluable contribution to the company’s performance, the Board has set aside 7.50 percent of the 2017 Profit After Tax as profit sharing pool for all members of its staff.
With a dividend yield of 5.48 percent at current market price, LUR is positioned within the group of good dividend-yield stocks such as Custodian and Allied Insurance, Guaranty Trust Bank Plc and Zenith Bank Plc within the financial services sector. This is coupled with its sustained high standard of corporate and ethical governance.
The Company has consistently posted improved incremental growth within the last three financial years, with the 2017 performance recording the highest improvement. This is in spite of the turbulent economic climate over the periods.
STEPHEN ONYEKWELU
