NIGERIA – Linkage Assurance Plc, one of the leading insurance providers in Nigeria, has recorded a super normal profit increase in the full year results of 2019 despite of operating in a difficult business environment.
Link Assurance said that its profit before tax increased by 894 per cent from N134.70m (US$0.35 million) in 2018 to N1.34bn (US$3.51 million) in 2019.
Chairman of Link Assurance, Chief Joshua Fumudoh, revealed this to stakeholders during the company’s 26th annual general meeting.
The Chair further revealed that the company’s gross premium written rose by 21 per cent to N6.52bn (US$16.97 million) as of the end of 2019 from N5.39bn (US$14.03 million) in December 2018.
As a result of the exemplary performance, Link Assurance rewarded its shareholders with a bonus issue of one for four shares by the capitalisation of N1bn from the company’s general reserve account.
Fumudoh in his statement said that despite of increasingly difficult operating environment, Linkage Assurance made appreciable progress in all fronts.
He said the company achieved an underwriting profit of N409m (US$1.06 million)in 2019, compared to the N772m losses in 2018 (US$2.01), while net claims paid reduced to N1.7bn (US$4.42 million), compared to N2.7bn (US$7.03 million) achieved in the previous year.
Fumudoh noted that the significant reduction in net claims was a result of improved underwriting and effective reinsurance arrangement.
Fumudoh commended the management and staff for the performance of the company, stating that they demonstrated peculiar commitment and dedication to the growth of the business despite the stiff competition and the harsh operating environment.
The Managing Director/Chief Executive Officer, Linkage Assurance, Mr Daniel Braie, said the company crafted a five-year strategic road map that would guide its operations in achieving both its short and long-term goals.
Linkage Assurance Plc was incorporated 26th March, 1991 and was licensed to cover and transact non-life insurance businesses on 7th October, 1993.
As part of the recapitalization and consolidation reforms of Federal Government of Nigeria, the company merged with Central Insurance Company Limited on 27th February, 2007 to form a larger, better capitalized insurance outfit.