Staco Insurance Plc has assured its shareholders that the company will see a turnaround in its performance soon notwithstanding the economic situation.
It says the strategies were being put in place to create shareholder value, increase returns on investment and make the firm competitive again..
Samuel Turoti, chairman of the company said at its Annual General Meeting in Lagos that the Board and Management were reviewing the company’s circumstances with a view to make it profitable as soon as possible notwithstanding the current economic situation of the country.
The company recorded gross revenue of N5.40 billion at the end of 2016 against N6.16 billion in 2016, a 12.67 percent drop, which could not translate to profitability as result of challenges in the operating environment.
According to him, uncertainties in the economy greatly influenced the buying habits of insurance products consumers and further led to the shrinking of industry premium growth.
“Premium was in some cases reduced from comprehensive to third party cover and also, some premium were now paid quarterly with reduced amount of sum insured which led to the reduction in the cash flow of the organization. Also, the cost of doing business increased tremendously there by reducing the purchasing power of both the individual and corporate bodies.”
Turoti further stated that the year 2016 was more challenging than envisaged. “We look forward to a better country with higher insurance awareness that will enable us fare better.”
Sakiru Oyefeso, group managing director/CEO of the Company said despite the short comings resulting from the recorded decline in profit as a result of high exchange rate arising from unfavorable exchange rate of Naira to Dollar on the company’s dollar denominated liabilities; both contractual and operational, the company’s management is committed to turning things around for the better by continuously delivering value and positively affecting the lives of its stakeholders by conducting its business in a way that is friendly and ethical with best practices.
“The company intends to embark on strategic expansion aimed at exploring and capturing new frontiers, pursuing and driving the micro insurance concept for a better share of the market and increased market value.”
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