LASACO ASSURANCE ANNUAL REPORT 19

2018 ANNUAL
REPORT
Table of Contents
& FINANCIAL STATEMENTS

Corporate Informa on i

Vision/Mission Statement and Quality Policy ii

Our Values 1

Result At A Glance 3

Chairman’s Statement 5

Board of Directors/Profile of Directors 8-10

Directors’ Report 13

No ce of Annual General Mee ng 18

Statement of Director's Responsibili es 21

Cer fica on by Company Secretary 22

Management Comments and Analysis 24

Corporate Governance Report 27

Risk Management Declara on 38

Report of Statutory Audit Commi ee 40

Report of the Independent Auditor 42

Statement of Accoun ng Policies 47

Statement of Financial Posi on 80

Statement of Comprehensive Income 82

Statement of Changes in Equity 84

Statement of Cash Flow 86

Notes to Financial Statements 88

Five Years’ Financial Summary 127

Statement of Value Added 129

Life Revenue Accounts 130

Non Life Revenue Accounts 131



CORPORATE LASACO 2018 RANENPUAOL RT
INFORMATION
ASSURANCE PLC & FINANCIAL STATEMENTS

REGISTERED OFFICE/HEAD OFFICE E-mail: [email protected]

Plot 16, Acme Road Website: www.lasacoassurance.com
Ogba Industrial Estate
Ikeja Incorporation Certificate:
Lagos State. RC 31126 of 20th December, 1979

DIRECTORS AND PROFESSIONAL ADVISERS
DIRECTORS

Mrs Aderinola Disu Chairman

Mr. Segun Balogun Managing Director/CEO

Engr. Sani Ndanusa Independent Director

Director
Director
Deputy Managing Director(Corporate Services)
Deputy Managing Director (Technical)
Mr. Akin Odusami
Otunba Akin Doherty
Mr. Rilwan Oshinusi

LASACOMr. Razzaq Abiodun
ASSURANCEREGISTRARS PLC
AUDITORS

Doyin Owolabi & Co. Apel Capital & Trust Ltd

(Chartered Accountants) 8, Alhaji Bashorun Street,

14, Falolu Street, Off Norman Williams Street

Surulere, Lagos Ikoyi - Lagos

FRC/2012/1CAN/00000000101 Telephone: 01- 873928, 7401444-5

Contact Person:
Oluwafunmilola Babalola

Email: [email protected]

BANKERS ACTUARY
Guaranty Trust Bank Plc EY Actuaries
First Bank of Nigeria Plc
ESTATE VALUERS
Ecobank Nig. Ltd Oletubo & Co
United Bank For Africa Plc Estate Surveyors & Valuers
Sterling Bank Plc
Polaris Bank Ltd Fola Oyekan & Associates
Estate Surveyors & Valuers

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CORPORATE LASACO 2018RANENPUAOL RT
INFORMATION
ASSURANCE PLC & FINANCIAL STATEMENTS

To be a market leader in Insurance and Financial
Services in Nigeria, creating and sustaining an
exceptional brand and providing long term value to
our Stakeholders.

We are committed to be the Insurance and Financial
Services Company of choice in Nigeria, providing
Products and Services of Superior Quality, using
modern tools and a well motivated workforce to
create long term value for all our Stakeholders.

LASACO Assurance Plc is committed to delivering
Insurance and Financial Services Of Superior Quality,
surpassing customers expectations and ensuring
strict compliance with regulatory/statutory
requirements.

We are committed to continually improving the
effectiveness of our Quality Management System.We
establish measurable goals and objectives at
Departmental levels which we review as the need
arises ensuring timely, effective implementation of
company strategy.

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CORPORATEITTPCECrAnrerutcxuoaseccesftteoagelmotlrusiiestwmvniitnyeotocarrynebkFialloiitcsyums 2018LASACORANENPUAOL RT
INFORMATION
ASSURANCE PLC & FINANCIAL STATEMENTS

OUR VALUES

EPICTACT

1

LASACO ANNUAL

ASSURANCE PLC REPORT

RESULT AT A GLANCE & FINANCIAL STATEMENTS

2018

2

RESULT AT A LASACO 2018RANENPUAOL RT
GLANCE
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

2018 FINANCIAL HIGHLIGHTS

2018 2017
₦'000 ₦'000

MAJOR STATEMENT OF 17,052,479 18,571,052 -8%
FINANCIAL POSITION ITEMS

Total assets

Total liabili es 8,568,906 10,414,726 -18%

Shareholders' funds 8,483,572 8,156,326 4%

MAJOR STATEMENT OF 9,014,060 6,673,652 35%
COMPREHENSIVE INCOME ITEMS 5,221,815 3,992,444 31%
Gross premium wri en -14%
Net underwri ng income 753,682 874,674

LASACOInvestment income
Other income ASSURANCE PLC190,525
Net claims paid 1,801,944
Profit before taxa on 576,425 -67%
1,962,134 -8%

958,199 854,273 12%

Profit a er taxa on 736,279 661,878 11%

INFORMATION PER 50K 13 12
ORDINARY SHARE 54
Earnings per share (kobo)
Proposed dividend per share (kobo) 116 111
Net assets (kobo)

Number of 50k shares issued 7,334,344 7,334,344
Number of employees 163 163
Number of branches 15 15

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CORPORATE GOVERNANCE LASACO 2018RANENPUAOL RT
REPORT (Continued)
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

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 Complaints 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 on matters that affect
shareholders.

LASACO

ASSURANCE PLC

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CORPORATE GOVERNANCE LASACO 2018RANENPUAOL RT
REPORT (Continued)
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

DIRECTOR NOMINATION PROCESS
The Board agrees on the criteria for the desired experience and competencies of new
Directors. The Board has power under the Articles of Association to appoint a Director to
fill a casual vacancy or as an additional Director.

The balance and mix of appropriate skills and experience of Non-Executive Directors is
taken into account when considering a proposed appointment. In reviewing the Board
composition, the Board ensures a mix with representatives from different industry
sectors.

The shareholding of an individual in the company is not considered a criterion for the
nomination or appointment of a director. The appointment of directors is subject to the
approval of NAICOM.

The following are considered critical in nominating a new Director;

(i) Sterling reputation, and demonstrable adherence to the highest personal moral and
ethical standards

(ii) Professionalism

(iii) Independence, objectivity and dedication

(iv) Impeccable corporate governance record

(v) Ability to add value to the Organization

LASACOINDUCTION AND CONTINUOUS TRAINING OF BOARD MEMBERS

On appointment to the Board, all Directors receive a formal induction tailored to meet
their individual requirements. The new Directors are oriented about the Company and its
operations through the Company Secretary via the provision of the Company's Articles of

ASSURANCE PLCAssociation, relevant statutory books and regulations and adequate information on the

operations.

The Directors are also given a mandate and Terms of Reference to aid in performance of
their functions. Management further strives to acquaint the new Directors with the
operations of the Company via trainings/seminars to the extent desired by new Directors
to enable them function in their position.

The training and education of Directors on issues pertaining to their oversight functions is
a continuous process, in order to update their knowledge and skills and keep them
informed of new developments in the insurance industry and operating environment.

ANNUAL BOARD APPRAISAL
The Code of Corporate Governance for insurance institutions recognizes that a good
corporate governance framework must be anchored on an effective and accountable
Board of Directors whose performance is assessed periodically. The annual appraisal
would be conducted at the end of the financial year, as well as the Company's compliance
status with the provisions of NAICOM.

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 relating to employee values.

WHISTLE BLOWING PROCEDURES
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 phone number for whistle-blowing
procedures and Whistle Blowing Form on our website .

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CORPORATE GOVERNANCE LASACO 2018RANENPUAOL RT
REPORT (Continued)
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

LASACO

ASSURANCE PLC

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CORPORATE GOVERNANCE LASACO 2018RANENPUAOL RT
REPORT (Continued)
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

LASACO

ASSURANCE PLC

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LASACO ANNUAL

ASSURANCE PLC REPORT

RISK MANAGEMENT & FINANCIAL STATEMENTS
DECLARATION
2018

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RISK MANAGEMENT LASACO 2018RANENPUAOL RT
DECLARATION
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

The Board Risk Management Commi ee of LASACO Assurance Plc hereby declares as follows:

a. The Company has systems in place for the purpose of ensuring compliance with NAICOM
guideline;

b. The Board is sa sfied with the efficacy of the processes and systems surrounding the
produc on of financial informa on of the Company;

c. The Company has in place a Risk Management Strategy, developed in accordance with the
requirements of NAICOM guideline on Enterprise Risk Management (ERM), se ng out its
approach to risk management; and

d. The systems that are in place for managing and monitoring risks, and the risk management
framework, are appropriate to the Company, having regard to such factors as the size, business
mix and complexity of the Company’s opera ons.

Segun BalogunLASACO
Aderinola Disu

Managing Director/CEO

ASSURANCE PLCFRC/2013/CIIN/00000002288
Chairman

FRC/2017/NBA/00000016203

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LASACO ANNUAL

ASSURANCE PLC REPORT

STATUTORY AUDIT & FINANCIAL STATEMENTS
COMMITTEE REPORT
2018

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STATUTORY AUDIT LASACO 2018RANENPUAOL RT
COMMITTEE REPORT
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

TO MEMBERS OF LASACO ASSURANCE PLC

In compliance with the provisions of Section 359(3) to (6) of the Companies and Allied
Matters Act (Cap C20) Laws of the Federation of Nigeria 2004, the Committee
considered the Audited Financial Statements for the year ended 31 December 2018
together with the Management Control Report from the Auditors and the Company’s
responses to this report at its meeting held on March 05, 2019.

In our opinion, the scope and planning of the audit for the year ended 31 December
2018 were adequate. After due consideration, the committee accepted the report of
the Auditors that the financial statements were in accordance with ethical practice and
generally accepted accounting principles and give a true and fair view of the state of
the Company financial affairs.

The Committee reviewed Management’s responses to the Auditors’ findings in respect
of Management Matters and the Auditors and our members are satisfied with
management’s responses thereto. On a review of insider/related party transactions,
the Committee was satisfied with their status.

The Committee therefore recommended that the Audited Financial Statements of the

LASACOCompany for the year ended December 31 2018 and the Auditors’ Report thereon be

presented for adoption at the Annual General Meeting.

The committee also approved the provision made in the Financial Statements in

ASSURANCE PLCrelation to the remuneration of the Auditors

MR. MATTHEW AKINLADE
Chairman, Audit Committee
FRC/2013/ICAN/0000002111
March 05,2019

MEMBERS OF THE AUDIT COMMITTEE ARE:

Mr. Mathew Akinlade -Chairman – Shareholders’ Representative

Mrs. Abigail Olaaje -Member – Shareholders’ Representative

Mr. Samson Olagoke -Member – Shareholders’ Representative

Mr. Akin Odusami -Member – Board’s Representative

Otunba Akin Doherty -Member – Board’s Representative

Engineer Sani Ndanusa -Member – Board's Representative

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ANNUAL

REPORT

& FINANCIAL STATEMENTS
LASACO

ASSURANCE PLC

INDEPENDENT AUDITOR’S

2018REPORT

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INDEPENDENT AUDITOR’S LASACO 2018RANENPUAOL RT
REPORT
ASSURANCE PLC & FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018

D Doyin Owolabi & Co.
Chartered Accountants

To the shareholders of LASACO Assurance Plc
Report on the Audit of the Financial Statements

Opinion
We have audited the accompanying financial statements of LASACO Assurance Plc.
which comprise the statement of financ1al position as at December 31 , 2018, the
statement of profit or loss and other comprehensive income, statement of changes in
equity, statement of cash flow for the year then ended, and the notes to the financial
statements including a summary of significant accounting policies.

In our opinion, the financial statements give a true and fair view of the financial position
of LASACO Assurance Plc.as at December 31, 2018 and the financial performance and cash
flows for the year then ended in accordance with the International Financial
Reporting Standards, the Companies and Allied Matters Act Cap C20 LFN 2004, Insurance
Act 17 LFN 2004 and Finncial Reporting Council of Nigeria Act, 2011.

Basis of Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with the Institute of Chartered Accountants of Nigeria (ICAN)

LASACOProfessional Code of Conduct and Guide for Accountants and other independence

requirements applicable to performing audits of financial statements in Nigeria. We have
fulfilled our other ethical responsibilities in accordance with the ICAN Code and in

ASSURANCE PLCaccordance with other ethical requirements applicable to performing audits in Nigeria. The

ICAN Code is consistent with the International Ethics Standards Board for Accountants Code
of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole , and in forming
our opinion thereon, and we do not provide a seperate opinion on these matters.

Key Audit Matters How our audit addressed the key audit
matters
Valuation of insurance contract
liabilities - N6.0 billion(See Note 14) We obtained the actuarial valuation report for
The estimate of insurance contact insurance contract liabilities from management.
liabilities involves a significant degree We assessed the competence, independence and
of judgement. The liabilities are based objectivity of management's external actuarial
on the best-estimate ultimate cost of all experts
claims incurred but not settled at a We understood, evaluated and tested controls and
given date, whether reported or not performed detailed substantive testing over
and a reserve for unexpired premium. claims process.
The cost of outstanding claims is We tested the accuracy, completeness and
determined by using a range of appropriateness of the underlying data used in the
standard actuarial claims projection actuarial valuations by performing checks
techniques in order to estimate the between the data recorded in the financial
gross ultimate claims experience. The statements and actuarial data used by
methodolgy for calculating premium management experts.
provisions depends on the basis of the
reinsurance contract- risk attaching or
losses occurring.

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