Staco Insurance Plc has reported negative shareholders’ funds of N4.221 billion for the 2020 financial year, underscoring a significant deterioration in its financial position.
The insurer, which had not released its audited financial statements for five years, published its 2020 results on the Nigerian Exchange Limited yesterday.
The financial statements show that total assets declined by 3.99 per cent to N5.690 billion in 2020, compared to N5.926 billion recorded in 2019. Shareholders’ funds weakened further to a negative N4.221 billion, from a negative N3.233 billion in the previous year.
Gross premium income dropped sharply by 70.14 per cent to N677.136 million, down from N2.268 billion in 2019. Similarly, net premium earned fell by 64.13 per cent to N735.292 million from N2.050 billion. However, investment income rose by 49.87 per cent to N118.628 million, compared to N79.153 million in the prior year.
Net underwriting and claims expenses declined to N421.719 million, from N1.089 billion in 2019. Despite the reduction in expenses, the company recorded a loss before tax of N870.764 million, higher than the N819.115 million posted in 2019. Net loss for the year stood at N939.864 million.
In response to the challenging financial performance, Staco Insurance stated that it has outlined a clear and decisive strategy to restore its financial health and drive future growth. According to the company, its Board has approved a multi-faceted plan centred on recapitalisation and operational enhancement aimed at stabilising the business and repositioning it for recovery.
