Staco Insurance has posted negative shareholders’ funds of N14.221 billion in 2020, indicating a significant deterioration in the company’s financial position.
The company having not released its audited results for five years, released its 2020 financial results yesterday on the Nigerian Exchange.
The results revealed that the company total assets declined by 3.99 per cent to N5.690 billion ad against N5.926 billion in the corresponding period of 2019. Shareholders’ funds declined to a negative of 4.221 billion higher than a negative of N3.233 billion in 2019.
The Company’s gross premium declined by 70.14 per cent to N677.136 million from N2.268 billion in 2019. Net premium earned down by 64.13 per cent to N735.292 million from N2.050 billion, while investment income rose by 49.87 per cent to N118.628 million from N79.153 million.
Net underwriting and claims expenses dropped to N421.719 million from N1.089 billion in 2019. Loss before tax stood at N870.764 million compared to N819.115 million, while net loss amounted to N939.864 million.
STACO Insurance stated that “it has outlined a clear and decisive strategy to restore its financial health and drive future growth. The Board has approved a multi-faceted plan focused on recapitalisation and operational enhancement.”
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