Linkage Assurance Plc has declared a profit before tax (PBT) of N1.34billion for 2019, up from N134.70 million in 2018, representing an 894 percent increase.
This is also as the firm recorded Gross Premium Written (GPW) increase of N6.52 billion from N5.39billion in December 2018, a 21 percent increase.
Reeling out the financial statement, during 26th Annual General Meeting held in compliance with the Coronavirus disease (Covid-19); safety guidelines, Chairman of the Company, Chief Joshua B. Fumudoh also announced the bonus issue of one for four shares by the capitalization of N1 billion from the Company’s general reserve account to shareholders.
According to Fumudoh, the growth by Linkage Assurance was achieved despite the increasingly difficult operating environment, just as he noted that the firm made appreciable progress on all
He said Linkage Assurance achieved an underwriting profit of N409 million in 2019, compared to the N772 million losses in 2018, while net claims paid was N1.7 billion compared to N2.7 billion.
“The significant reduction in net claims Fumudoh said was a result of improved underwriting and effective reinsurance arrangement,” he said.
Fumudoh in his further remarks commended Management and Staff for the performance of the company for demonstrating ‘uncommon commitment and dedication to the growth of the business despite the stiff competition and the harsh operating environment.’
Remarking,Mr. Daniel Braie, Managing Director/CEO of Linkage Assurance, said the company during the year under review crafted a Five-Year Strategic Road Map that will guide its operations in achieving both her short and long term goals.
The four strategic pillars in line with its Balanced Scorecard Framework Daniel Braie noted include Business Growth, Financial Excellence, Operational Excellence and Customer Intimacy
“In line with our strategic focus and business growth initiatives, the last quarter of 2019 was our starting point in delivering on our Strategy. Using an agile approach and with strong dedication, we were able to achieve a signiﬁcant milestone in revenue. This achievement acted as a catalyst to our desire to do more for both our shareholders and the customers.
“In the bid to expand our product oﬀerings and in response to demands from the market, we are also concluding approval processes to underwrite agricultural insurance risks.
“In the year 2020, we would embark on several initiatives in a bid to eﬃciently achieve our corporate objectives as enshrined in our Five-Year Strategic Plan. Part of what we would do, is to communicate to every unit and department the overall strategic focus for the year and the speciﬁc initiatives, goals and objectives exclusive to their diﬀerent departments,” Braie said.
Linkage Assurance, a general business underwriter currently has total assets in assets of N28.7 billion at the end of 2019 financial year.
Only recently, ratings firm, Agusto & Co had affirmed the company A- status, confirming its satisfactory financial condition and adequate capacity to meet claims obligation as well as a stable outlook.