At the 44th annual general meeting of Lasaco Assurance Plc in Lagos, the board reassured shareholders about future dividends after not paying any for the 2023 financial year.
Chaired by non-executive director Akinsanya Doherty in the absence of board chairman Mrs. Olateju Phillips, the meeting highlighted that the decision to forgo dividends was a strategic move aimed at enhancing the company’s performance.
Doherty emphasized the importance of strategy over simply following market trends, stating that not paying dividends this year is intended to strengthen the company for future growth. He mentioned ongoing projects with subsidiaries and improvements in performance compared to last year. He also addressed the significance of cybersecurity and the company’s recapitalization efforts, noting that the first phase is nearly complete, which is partly why dividends were not distributed.
Managing Director/CEO Razzaq Abiodun added that a substantial portion of the fresh funds raised will focus on digitizing operations and enhancing the company’s presence in the retail market. He pointed out that while the company currently relies heavily on corporate sales, improving digital capabilities is essential for efficiency and expansion into retail.
Shareholders, including Lawrence Oguntoye from Ibadan, praised the management for the company’s improved financial performance and successful recapitalization, despite the challenging economic climate. Oguntoye urged management to boost performance in motor insurance and explore additional business opportunities to enhance the company’s resilience in an inflationary environment.