Linkage Assurance Grows Profit by 894%, Rewards Shareholders
Linkage Assurance Plc recently rewarded its shareholders with a bonus issue of one for four shares by the capitalisation of N1 billion from the company’s general reserve account.
Announcing this at the 26th Annual General meeting of the company held in Lagos, the company’s chairman, Chief Joshua Fumudoh, said in the 2019 financial year, the company recorded Gross Premium Written (GPW) of N6.52 billion, from the N5.39 billion it made in December 2018. This was a 21 per cent increase. Its profit before tax (PBT) also increased from N134.70 million in 2018, to N1.34 billion, representing an 894 percent growth.
Fumudoh also said the company achieved an underwriting profit of N409 million in 2019, compared to the N772 million losses recorded in 2018, while net claims paid was N1.7 billion compared to N2.7 billion.
“The significant reduction in net claims was a result of improved underwriting and effective reinsurance arrangement”, he explained.
Shareholders applauded the board and management over what they described as an impressive results achieved in 2019.
They also appreciated the bonus issue, describing it as palliative to shareholders particularly at this time.
Also speaking, Managing Director/CEO of Linkage Assurance, Daniel Braie, said the company during the year under review, developed a five-year strategic roadmap to guide its operations in achieving both short and long term goals.
He said the four strategic pillars in line with its balanced scorecard framework 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,” Braie said.
According to him, the company, has embarked on digital transformation to improve her services especially to the millennials and remote customers.
“In the bid to expand our product o erings 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 e ciently 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 di erent departments,” Braie added.