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Chuks Udo Okonta
Linkage Assurance Plc has assured shareholders that despite the challenges posed by the impact of COVID-19, the Company is on course to meeting the recapitalisation requirements.
The Company disclosed that it is concurrently exploring all available options including Rights Issue, private placement, and internal capital sourcing to raise the required funds.
Insurance companies in the country have been in the process of raising capital as required by the National Insurance Commission (NAICOM) before the COVID-19 pandemic, which did not only affect the economy but disrupted the exercise as expected investors from both local and outside the shores of the country were affected.
The industry recapitalisation exercise, which commenced on 20th May 2019 and to end 31 December 2020, requires that life companies increase their paid-up share capital from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance companies from N10 billion to N20 billion.
The Managing Director/CEO of Linkage Assurance Plc, Daniel Braie had assured the brokerage fraternity earlier in the year that his company will meet the new capital base of N10 billion.
Linkage Assurance Plc at the close of business in 2019 posted a Gross Written Premium (GWP) of N6.52 billion as against N5.39 billion during the same period in 2018, indicating a 21 percent increase.
From the business generated in 2019, the company also recorded a Profit Before Tax (PBT) growth of 909 percent, moving from N135 million in 2018 to N1.36 billion during the review period.
Profit After Tax (PAT) also grew to N1.3 Billion, a 553 percent increase from a loss position of N290 million during the same period in 2018.
Underwriting profit rose by 153 percent to close at N409 million during the review period, as against loss position of N773 million the previous year, while investment also grew by 10 percent, moving from N2.46 billion in 2018 to N2.71 billion in 2019.