LASACO ASSURANCE PLC LASACO ASSURANCE PLC
UN AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023
LASACO ASSURANCE PLC
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023
TABLE OF CONTENTS | Page(s) | |
1 | Corporate information | 1 |
2 | Financial highlights | 2 |
3 | Corporate Governance Report | 3 - 5 |
2 | Statement of Accounting Policies | 6 - 33 |
3 | Statement of Financial Position | 34 |
4 | Statement of Comprehensive Income | 35 |
5 | Statement of Changes in Equity | 36 |
6 | Statement of Cash Flows | 37 |
7 | Notes to Financial Statements | 38-48 |
LASACO ASSURANCE PLC | |
CORPORATE INFORMATION | 1 |
FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023 |
REGISTERED OFFICE/HEAD OFFICE
Plot 16, ACME Road
Ogba Industrial Estate
Ikeja
Lagos State.
Tel: (234) 01 - 2120557
E-mail: info@lasacoassurance.com
Website: www.lasacoassurance.com
Incorporation Certificate: RC 31126 of 20th December, 1979
DIRECTORS AND PROFESSIONAL ADVISERS | |
DIRECTORS: | |
Mrs. Teju Phillips | Chairman |
Mr. Razzaq Abiodun | Managing Director/CEO |
Engr. Sani Ndanusa | Independent Director |
Otunba Akin Doherty | Non - Executive Director |
Prince Jamiu Adio Saka | Non - Executive Director |
Adeniyi Saliu | Non - Executive Director |
Mr. Rilwan Oshinusi | Deputy Managing Director(Corporate Services) |
Ademoye Shobo | Executive Director (Technical) |
AUDITORS | BDO Professional Services. (Chartered Accountants) |
15, CIPM Avenue | |
Central Business District | |
Alausa , Ikeja | |
Lagos | |
REGISTRARS | Apel Capital & Trust Ltd |
8, Alhaji Bashorun Street, Off Norman Williams Street | |
Ikoyi - Lagos | |
Telephone: 01- 873928, 7401444-5 | |
Contact Person: Oluwafunmilola Babalola | |
Email: obabalola@apel.com.ng | |
BANKERS | Polaris Bank Ltd |
Zenith Bank Plc | |
First Bank of Nigeria Plc | |
Ecobank Nig. Ltd | |
United Bank For Africa Plc | |
Guaranty Trust Bank Plc | |
Sterling Bank Plc | |
ACTUARY | EY Actuaries |
ESTATE VALUER | Oletubo & Co Estate Surveyors & Valuers |
Fola Oyekan & Associates Estate Surveyors & Valuers |
LASACO ASSURANCE PLC | 2 |
FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023
30-Sep-23 | 30-Sep-22 | ||
N'000 | N'000 | % CHANGE | |
Gross premium | 14,399,127 | 11,643,330 | 23.67 |
Underwriting expenses | 3,900,158 | 2,651,961 | 47.07 |
Underwriting profit | 1,636,802 | 2,402,758 | (31.88) |
Profit before tax | 704,002 | 421,648 | 66.96 |
Income tax | (116,016) | (140,479) | (17.41) |
Profit after tax | 587,986 | 281,169 | 109.12 |
Earning per share (k) | 0.32 | 0.15 | 109.12 |
Net asset per share (k) | 7.25 | 7.08 | 2.41 |
LASACO ASSURANCE PLC | 3 |
UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023 CORPORATE GOVERNANCE REPORT
In accordance with the general requirements of the Code of Best Practices and Principles of Corporate Governance in Nigeria, 2011 ("the code"), we hereby highlight those key principles and practices that form the basis of the high standards of corporate conduct for which LASACO is known for.
At LASACO, we conduct our business activities in accordance with the highest degree of ethical standards of good governance, integrity and in full compliance with the law, while taking into account the interest of stakeholders. We reach out to our employees, business partners, associates and stakeholders at large to secure their commitment and participation in upholding high standards of conduct in the performance of their duties.
The Board of Directors are responsible for setting, reviewing and guiding corporate strategy, major plans of action, risk policy, annual budgets and business plans; setting performance objectives, monitoring implementation and management performance; and overseeing major capital expenditures, acquisitions and investments. In order to fulfill their responsibilities, we ensure that Board members have access to accurate, relevant and timely information and that Board Members devote sufficient time to their responsibilities and duties.
The Matters Reserved For the Board
The Board of Director's major performance enhancing and direction-setting responsibilities include the following matters:
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Strategy formulation, policy thrust and management policies ii Integrity of financial controls and reports
iii Risk assessment and internal controls iv Board and top executive appointments
v Creating and sustaining appropriate relationships with all stakeholders
vi Selection, performance appraisal and remuneration of Executive Directors vii Succession planning
viii Corporate responsibility through the approval of relevant policies
ix Approves and reviews the matters reserved for the Board and the terms of reference for Board Committees
x Determines the remuneration for Non-Executive Directors
- Sets the procedure for determining the remuneration of the Company's independent auditors
- Nominates members of the Board's committees and determines the scope of delegated authority to Board Committees and the Manangement as well as their respective responsibilities and accountability.
- Develops and enforces a code of conduct for Non-Executive Directors and a binding Statement of Standards of Business Conduct for compliance by all Company employees.
- Ensures compliance with all relevant laws and regulations by the Company and its officers.
Governance Structure
The Company is committed to high standards of corporate governance. Corporate governance practice in the Company is drawn from various applicable codes of corporate governance issued by National Insurance Commission (NAICOM) and Securities and Exchange Commission (SEC). This ensures compliance with regulatory requirement as well as the core value which the Company upholds.
The provision of the codes is geared towards ensuring transparency and accountability of the Board and Management to shareholders of the Company.
The Board of Directors
Presently, The Board is made up of four Non-Executive Directors, one being Independent Director and three Executive Directors for the period ended 30th June, 2023. At LASACO, the position of the Chairman is separated and distinct from that of the Managing Director/Chief Executive Officer. The Chairman is Non-Executive Director.
LASACO ASSURANCE PLC | 4 |
UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023 CORPORATE GOVERNANCE REPORT (Continued)
Securiy Trading Policy
The Company has a share trading policy which is being adhered to in compliance with the reqiurements of the Nigerian Stock Exchange.
The Company has made specific enquiry of all directors as to whether they have complied with the required standard set out in the listing rules and the Company's securities trading policy and the Company is not aware of any non - compliance.
Complaint Management Framework Policy
The Company ensures that communication and dissemination of information regarding the operations of the Company to shareholders, potential investors and general public is timely, accurate and continuous.
In compliance with the requirements of Securities and Exchange Commission's rules relating to the Complaints Management Framework of the Nigerian Capital Market issued in 2015 and the directive of the Nigerian Stock Exchange issued in 2015. Also, the Company has put in place a Compalaints Management Framework Policy.
The Complaint Management Framework Policy sets out the Board framework by which LASACO Assurance Plc and its Registrar will provde assistance regarding Shareholders issues and concerns. It also provides feedback mechanism n matters that affect shareholders.
Code of Professional Conduct for Employees
We have an internal Code of Professional Conduct, which all members of staff are expected to subscribe to upon assumption of duties. Staff is also required to reaffirm their commitment to the Code annually. All members of staff are expected to strive to maintain the highest standards of ethical conduct and integrity in all aspects of their professional life as contained in the Code of Professional Conduct which prescribes the common ethical standards, culture and policies of the Company to employee values.
Whistle Blowing Procudures
In line with the Company's commitment to instill the best corporate governance practices, a Whistle Blowing procedure was established that ensures anonymity on any reported incidence(s). The Company has a dedicated
number for whistle-blowing procedure and Whistle Blowing Form on our website.
LASACO ASSURANCE PLC | 5 | |||
Shareholding Structure/Free Float Status | ||||
30-Sep-23 | 30-Sep-22 | |||
Description | Unit | Percentage | Unit | Percentage |
Issued Share Capital | 1,833,585,855 | 100% | 1,833,585,855 | 100% |
Substantial Shareholdings (5% and above) | ||||
Ibile Holdings Ltd | 506,949,191 | 27.65% | 506,949,191 | 27.65% |
Canon Properties & Investments Ltd | 232,941,185 | 12.70% | 232,941,184 | 12.70% |
Total Substantial Shareholdings | 739,890,376 | 40.35% | 739,890,375 | 40.35% |
Directors' Shareholdings (direct and indirect), excluding directors with substantial interests | ||||
Mrs. Teju Phillips (representing Ibile Holdings Ltd) | -- | -- | -- | -- |
Otunba Akin Doherty ( representing Canon Properties & | ||||
Investment Ltd) | - | - | - | - |
Otunba Akin Doherty (Direct) | 737,411 | 0.04% | 2,949,645 | 0.16% |
Prince Jamiu Adio Saka | 250,000.00 | 0.01% | 250,000.00 | 0.01% |
Mr Adeniyi Saliu | - | - | - | - |
Mr. Razzaq Abiodun (Direct) | 746,000 | 0.04% | 746,000 | 0.04% |
Mr. Ademoye Shobo | ||||
Total Directors' Shareholdings | 1,733,411 | 0.09% | 3,945,645 | 0.22% |
Other Influential Shareholdings | ||||
STANBIC NOM./ AMCON / STERLING BANK PLC | 66,865,000 | 3.65% | 66,865,000 | 3.65% |
SNNL/ASSET MGT CORPORATION OF NIG - TRAD | 36,799,139 | 2.01% | 36,799,139 | 2.01% |
FIRST PENSION CUSTODIAN | 29,188,213 | 1.59% | 29,188,213 | 1.59% |
JOINT HIERS RESOURCES | 25,000,000 | 1.36% | 25,000,000 | 1.36% |
CALYX SECURITIES LTD. | 22,709,327 | 1.24% | 22,709,327 | 1.24% |
OCEANIC TRUSTEES NOMINEE ACCOUNT | 20,693,773 | 1.13% | 20,693,773 | 1.13% |
PYRAMID SECURITIES LIMITED | 19,833,571 | 1.08% | 19,833,571 | 1.08% |
Total Other Influential Shareholdings | 221,089,023 | 12.06% | 221,089,023 | 12.06% |
Free Float in Units and Percentage | 870,873,046 | 47.50% | 868,660,812 | 47.37% |
Free Float in Value | ₦ 6,531,547,841.25 | ₦ 9,468,402,850.80 |
Declaration:
LASACO Assurance Plc with a free float percentage of 47.39% as at 30th September 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
LASACO ASSURANCE PLC | 6 |
UN - AUDITED FINANCIAL STATEMENTS, FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The following are the significant accounting policies adopted by the Company in the preparation of these financial statements. These accounting policies have been consistently applied for all years presented.
1.0 General Information
- LASACO Assurance Plc ("LASACO" or ''the Company") is a public limited liability Company domiciled in Nigeria. The Company's registered and Corporate Office is Plot 16, ACME Road, Ogba Industrial Estate,Ikeja Lagos.
The Company was incorporated on 20 December 1979 under the Company Decree of 1968. The Company then, known as Lagos State Assurance Company Limited obtained license as an insurer on 7 July 1980 and commenced business on 1 August 1980. It became a public limited liability Company in 1991 when the Company's shares were listed on the Nigerian Stock Exchange. The Company secured a life insurance business license from National Insurance Commission (NAICOM) in 2007. The Company then separated the life business and transferred the related assets and liabilities to its subsidiary, LASACO Life Assurance Company Limited . On 1 January 2009 LASACO Life Assurance Co. Ltd commenced business. The Company operates from its corporate office in Lagos and whilst it maintains branches in major cities of the Federation.
The purpose of the merger is to enable the Company operate as a composite Insurance Company as against the group structure in operation before the merger.
The merger process was concluded on 16 December 2014 with conclusion of the Court Ordered Meeting and final Court approval. This is in line with Section30(1)(b) of the Insurance Act.
All assets and liabilities of LASACO Life Assurance Ltd have been transferred to LASACO Assurance Plc, hence LASACO Life Assurance Co Ltd cease to operate as an Insurance Company and as a subsidiary of LASACO Assurance Plc with effect from 17 December 2014.
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Principal activity
The Company is principally engaged in the provision of various classes of insurance such as general accident, fire, motor, engineering, marine, bond insurances and life assurance businesses. The Company also transacts insurance business for aviation, oil & gas and other special risks.
These financial statements were authorized by the Board of Directors on October 26, 2023.
- Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. - Going Concern
These financial statements have been prepared on the going concern basis. The Company has no intention or need to reduce substantially its business operations, the management believes that the going concern assumption is appropriate for the Company due to sufficient capital adequacy ratio and projected liquidity, based on historical experience that short-term obligations will be refinanced in the normal course of the business. Liquidity ratio and continuous evaluation of current ratio of the Company is carried out by the Company to ensure that there are no going concern threats to the operations of the Company.
LASACO ASSURANCE PLC | 8 |
UN - AUDITED FINANCIAL STATEMENTS, FOR THE PERIOD ENDED 30TH SEPTEMBER, 2023 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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Business model assessment
For financial assets that are held for the purpose of collecting contractual cash flows, the Company has assessed whether the contractual terms of these assets are solely payments of principal and interest on the principal amount outstanding.
- Allowances for credit losses
Judgment is required by management in the estimation of the amount and timing of future cash flows when determining an impairment loss for debt instruments measured at amortised cost and fair value through other comprehensive income. In estimating these cash flows, the Company makes judgments about the borrower's financial situation and value of other collateral (where applicable). These estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the impairment allowance.
A collective assessment of impairment takes into account data from the debt portfolio (such as credit quality, levels of arrears, credit utilisation, loan to collateral ratios etc.), and concentrations of risk and economic data (including levels of unemployment, changes in foreign exchanges, real estate prices indices, country risk and the performance of different individual groups).
These critical assumptions have been applied consistently to all years presented, except as follows:
The Company applied the impairment requirements under IFRS 9 since 1 January 2018 and no changes to the assumptions used for the calculation for allowance for impairment in 2021 using the expected credit loss model.
- Impairment of financial assets
The Company has applied some judgment in carrying out an assessment of whether credit risk on the financial asset has increased significantly since initial recognition and incorporating forward-looking information in the measurement of Expected Credit Losses (ECL).
The impairment requirements of IFRS 9 apply to all debt instruments that are measured at amortised cost. The determination of impairment loss and allowance moves from the incurred credit loss model whereby credit losses are recognised when a defined loss event occurs under IAS 39, to expected credit loss model under IFRS 9, where expected credit losses are recognised upon initial recognition of the financial asset based on expectation of potential credit losses at the time of initial recognition.
Staged Approach to the determination of Expected Credit Losses
IFRS 9 outlines a three-stage model for impairment based on changes in credit quality since initial recognition. These stages are as outlined below:
Stage 1 | The Company recognises a credit loss allowance at an amount equal to the 12 month expected credit |
losses. This represents the portion of lifetime expected credit losses from default events that are | |
expected within 12 months of the reporting date, assuming that credit risk has not increased | |
significantly after the initial recognition. |
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Lasaco Assurance plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 07:42:40 UTC.
