WorldStage– Staco Insurance Plc’s financial statements released so far continue to paint an overall picture of losses and insolvency though its 2025 half-year report promises improvements.
In its 2020 audited financial report (of both consolidated and separate financial statements) disclosed on the Nigerian Exchange Group (NGX) this week, Staco racked up over N12.814 billion in deficits. This was more than N9 billion below the solvency margin N3 billion the Insurance Act CAP, 117, LFN, permits.
As at year end, the company showed a solvency ratio of -300%, the report stated.
According to the report auditor, PKF Professional Services, these and other details, including loan default, high overheads, and insurance contract liabilities ‘indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern’.
Apparently, Staco is not backing off.
Despite the fine and near delisting for breaching the insurance Act, the NGX guideline, and the Company and Allied Matters Act (CAMA), the company’s stock is still trading actively on the stock market at N0.48.
The management also stated in the report it would seek fund injection—about N8 billion—from Egerton Global Services in exchange for 80 percent of Staco’s shares in 2025.
Compared to 2024, last year’s H1 witnessed some improvements: premiums written increased by 80 percent, premium earned by 55 percent, and reduction in loss, 79 percent.
The company also decided to tighten its overhead spending, improve internal controls, and enhance its operations with better ICT infrastructure.
“We believe that the above action plan will help reverse the current loss position to profitability in the near future. The going concern status of the business of Staco Insurance Plc. is therefore assured,” the auditor added.
