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Staco insurance income goes up to N3.9bn in 3rd Qtr

Patience Saghana

Staco Insurance Plc recorded N3.88 billion in premium income in the third quarter of 2009, an 11.88 per cent growth from N3.47 billion posted during the same period in 2008.

Analysis of the figure showed that the company recorded an underwriting profit of N2.11 billion as against N1.89 billion the previous year, showing a growth of 11.41 per cent.

The growth in profit, analysts say, shows that the company is prudent in its underwriting practice which is a distinct quality of an underwriting company.

Despite the economic meltdown which affected businesses in the review year, the company posted a profit-after-tax figure of N579.88 million as against N891.46 million in 2008.

The board is confident that given the strategies in place, the result will improve in the remaining period in the year, assuring shareholders of a successful business year.

Staco Insurance during the 2009 financial year paid out N1.33 billion in claims to its numerous policy-holders both individuals and corporate organisations that suffered losses during the period.
This payment is a 48 per cent increase over N899 million paid out in 2008 operational year.

A breakdown of the 2009 claims figure shows that N530 million was paid out on Fire Insurance policies, N488 million paid on Motor Insurance policies, N36 million in Cash-in-Transit, N30 million in Goods-in-Transit amongst others.

Mr. Rasaq Hamza, assistant general manager in charge of Claims Department noted that prompt claims settlement is one of the strategies of securing customers’ loyalty at all times and that Staco is determined to ensure that its policy holders are restored to the normal financial status they enjoyed before the occurrence of any incident they are insured against.

He pointed out that the company will continue to be consistent in the payment of genuine claims to its valued customers because that is the essence of our being in business.

The company’s premium growth rose by 72 per cent in 2008 at the end of 2008 financial year, increasing from N2.8 billion in 2007 to N4.4 billion in 2008 whilst the company increased its branch network from 9 in 2007 to 15 in 2008.

Staco recently demonstrated its commitment to the business of insurance by constantly paying out claims to its teeming clients.

Mr. Bayo Fakorede, associate director, Brokers Marketing, reiterated the company’s commitment to prompt payment of claims, affirming that the insuring public needs to be assured of the obligation of the insurance underwriters to promptly settle their claims.

He stressed that Staco would continue to ensure that it remains reliable, and move towards aligning its claims payment strategy with its mission of being the first choice provider of superior insurance services, noting that such assurance would greatly increase the level of insurance penetration in Nigeria.

Fakorede said that Staco is among the few underwriting firms that paid a total sum of N8.67 billion claims on the fire incident that occurred at the Benin plant of Nigerian Bottling Company (NBC) last year which is the highest claim ever to be paid by any insurance company in Nigeria.

He added that Staco would continue to add real and genuine value to its customers’ needs, particularly in the area of claims settlement while also seeking to retain and enhance the company’s clientele.


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