Staco Assures investors on financial security (Nigeria)


By Ebere Nwoji | This Day, Nigeria August 8, 2018

The board of Staco Assurance Plc has assured

investors, members of the insuring public and other stakeholders in the company that their investments are safe and intact, despite the recent change in the leadership of the company.

The company also assured that the board had taken bold steps in laying down proper corporate governance procedures in line with global best practices, promising that the company would continue to be a responsible and dependable corporate entity that is fully committed to protecting all stakeholders’ interests including meeting its obligations to all policy holders.

The assurance was informed by the recent changes in the leadership of the company which saw the erstwhile Managing Director and Chief Executive Officer Mr Sikiru Oyefeso handing over the leadership of the company to Mr Bayo Fakorode.

A notice to the Nigerian Stock Exchange showed that Oyefeso was removed over allegations of “financial misappropriation, abuse of office and breach of corporate governance best practices.”

To this end, the Chairman board of the company, Samuel Turoti, assured all shareholders that their investments were safe and intact despite the recent change in the leadership of the company.

“To this end, the board has taken some bold steps in laying down a proper corporate governance procedure in line with global best practices.”

Fakorede, commenting on the position of Staco assured that the company would continue to remain a reputable brand noted for efficient customer service delivery and professional underwriting capacity.

According to him, the principal objective of the change process was to deliver exceptional customer service at all times and across all touch-points.

“Staco will continue to be a major player in the Nigerian insurance market by bringing to the table, a new customer experience and a robust IT infrastructure.

“In the insurance industry, we know that underwriting expertise and capacity are key. This is where Staco derives its strength as capacity building and manpower development will continue to receive maximum attention” he assured.

Speaking further he said, “We want to thank all stakeholders for their support to the company and assure them that the company will continue to deliver value added services to them.

“Let me assure all policy holders that we are committed to fulfilling all our obligations and will continue to be their dependable and reliable insurance company of choice.

“To our investors, they should be fully assured that their investments are safe and fully protected. They will continue to derive maximum value from their investments in our Company.

“Our commitment to proper and good corporate governance in line with global best practices is also being emphasised in our operations as we want to remain an ethical company,” he stated.

He said the company had noted that the new NAICOM initiative to strengthen the capacity of the Insurance sector in delivering the much-needed impetus for the economic growth of the nation.

He said Staco’s board was desirous of keying in to the project by shoring up its capital base to play as a tier-1 company.

According to him, towards this objective, the board had set in motion the talks with stakeholders to realise this dream.

Fakorede, specifically informed that the company was solvent and has advanced in talking with Investors and other stakeholders with a view to bring in new capital into the business.

gni Explains Delisting From NSE

Ebere Nwoji

Great Nigeria Insurance Plc (gni) said it grew its profit before tax by 202 per cent, from a loss position of N442.7 million in 2016, to a profit of N449.7million in 2017.

The company also gave reasons why it recently sought and secured approval of its shareholders to delist its shares from the Daily Official List and trading on the main board of the Nigerian Stock Exchange( NSE).

Announcing the financial performance of the company for the year ended December 31, 2017, gni Chairman, Mr Bade Aluko, said its gross premium rose to N3.02 billion in 2017, as against N2.21 billion reported the previous year of 2016,

This, it stated indicated a growth of 36.59 per cent.

He said the company’s investment income grew by 30.89 per cent from N306 million to N401 million in 2017; while value of the company’s total assets appreciated by 1.2 per cent to N10.12 billion, as against the N10 billion reported in 2016.

He said the company’s shareholders’ fund also witnessed a 7.7 per cent growth to stand N5.89 billion, as against the N5.43 billion reported in 2016.

Speaking on the company’s performance, its Managing Director, Mrs Cecelia Oshipitan, said the company had re- engineered its operations and had become more committed to dominating the retail market through continuous and consistent awareness using a motivated retail workforce, improved technology- driven applications and easily adaptable digital platform GNIOnGo to drive its sales.

“We will continue to improve our understanding of customer’s evolving needs and how they wish to be served,” she stated.

In his comments, one of the shareholders, Alex Adido, commended the company’s board for the bold step they have taken to delist the company voluntarily from the exchange, adding that the company has what it takes to survive after the delisting.

According to him, remaining at the exchange has not in any way benefited the company, while assuring that shareholders would support initiatives by the company.

Aluko, explained that the decision to delist the company from NSE was as a result of non-trading on the shares of the company over five years.

“Over the last five years, there is little or no trading activity with only 0.50 per cent of shares held by the minority shareholders being traded. There has also been a measurable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 units during the period January 2017 to December 2017.

“Neither our company nor you, our esteemed shareholders are benefiting from the continued listing as shares are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholders.

“Moreover, the company is bearing unnecessary cost in complying with its listing obligations.”

The shareholders at the meeting adopted the 2016 and 2017 financial accounts of the company.

On the future of the company, Aluko said, “Given our past performance and the competence of our team, I believe we can look ahead with confidence and optimism. I thank our shareholders for the confidence reposed in us.

“Together, we have built a strong business, driven by a single resounding purpose of service delivery to customers by keeping our promises. I believe that, with this focus on the customer, we will achieve and exceed our goal.”

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