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Tag: Linkage Assurance

  • Linkage Assurance posts N2.9b profit

    Underwriting firm, Linkage Assurance Plc has recorded a 431 percent growth in profit after tax (PAT) for the financial year ended December 2017.

    The figure grew from N544.6 million in 2016 financial year to N2.891 billion in the review period.

    The profit before tax (PBT) also appreciated by 218 percent, from N942.65 million in 2016 to N2.996 billion at the end of 2017.

    Linkage Assurance also boosted its bottom-line from investment income, which grew significantly by 260 percent, from N951.349 million in 2016 to N3.426 billion in the review year.

    This, according to the company, came from the 2015 and 2016 dividend income from Stanbic IBTC Pension Limited, which was received during the year and that led to a significant growth of 2,616 percent in the dividend income to N3.2 billion from N116million in 2016.

    In the company’s full year financial result submitted to the Nigerian Stock Exchange (NSE), Linkage Assurance Plc achieved gross premium written of N4.102 billion as against N4.032 billion, indicating a two percent increase, while the gross premium income inched 6 percent to close at N4.186 billion at the end of 2017, as against N3.966 billion the previous year.

    Just as the insurance business remains volatile with a claims hitting the industry, Linkage during the year under review paid out claims amounting to N1.038 billion, as against 613.196 million in 2016.

    This therefore impacted on underwriting profit which dropped 53 percent to close at N456.86 million, as against N980.79 million in 2017.

    The company also grew its total assets to N23.308 billion at the end of 2017, moving up by 15 percent from N20.331 billion in the previous year.

    The management said it will continue to refine its strategy in line with the political, economic, sociological and technological changes in the industry.

    The company said: “Also, we will continue to develop innovative products, alternative channels of distributions and strategic initiatives that will enable us achieve our corporate goals and objectives.’’

    With a medium-to-long term perspective, we believe that we will benefit from growth in these initiatives.”

    During the 2017 financial year, Linkage developed some retail products targeted at deepening penetration and increase revenue.

  • Why our audited report is late, by Linkage Assurance

    The management of Linkage Assurance Plc has sought for additional 60-day grace to submit its audited report and accounts for the 2016 business year, blaming the delay on late commencement of the audit exercise.

    In a regulatory filing signed by the company secretary, Mrs Kehinde Ayodele, Linkage Assurance said it was constrained to request further extension of 60 calendar days from April 30, 2017 within which to file its 2016 audited accounts.

    The company stated that it has received approval for the extension from the Nigerian Stock Exchange (NSE) and would file its accounts unfailingly on or before June 29, 2017.

    Quoted companies on the NSE are required to submit their annual report and accounts not later than 90 calendar days after the end of the year. The deadline for the submission of the annual report for the year ended December 31, 2016 was thus March 31, 2017.

    “We regret to inform you that our 2016 audit exercise is yet to be decisively concluded thus we have been unable to meet the filing deadline of March 31, 2017,” Linkage Assurance stated.

    The company noted that it encountered challenges during the 2015 audit exercise which resulted in the delay in approving and publishing of its accounts and subsequently holding of its annual general meeting belatedly on February 7, 2017.

    Consequently, the appointment of the new external auditors to the insurance company, KPMG, could not be ratified until the February 7, 2017 general meeting. KPMG replaced Akintola Williams Deloitte (AWD), which completed a tenure of five years.

    According to the company, the late ratification of the new external auditor caused delay in the commencement of the audit exercise for the 2016 Accounts and initially necessitated request for an extension to April 30, 2017 from the NSE.

    “We envisaged that the audit exercise would have been concluded in record time to enable us obtain board approval for onward submission to the National Insurance Commission. Unfortunately, the process has taken longer than anticipated being that our auditors are new and have had to go through a number of preliminary matters in order to familiarise themselves with the operations of the company,” the company stated.

    Linkage Assurance said it appreciated the concerns that may be raised over the delay, urging shareholders and the public to remain confident as the company remained committed to operational excellence, due diligence, and best-in-class financial practice.

  • Linkage Assurance launches retail products

    •NAICOM confirms Apere as MD

    Linkage Assurance Plc has unveiled special insurance products to capture the untapped retail market.

    This is coming on the heels of the confirmation of the appointment of Dr. Pius Apere as the substantive managing director of the firm by the National Insurance Commission (NAICOM) .

    The products included Linkage Purple Motor Plus and Linkage Third Party Plus, Linkage Shop Insurance, Linkage Event Insurance, Linkage Estate Insurance and Linkage SME Comprehensive; a stepdown industrial risk cover designed to provide financial protection for small and medium-sized enterprises.

    Apere, who spoke during the launch of the products in Lagos, said they were introduced into the market to assist policy holders in risk mitigation. He stated that Nigeria’s retail insurance market remains untapped, adding that the company intends to help bridge the gap by coming up with the products.

    He said: “The retail market has long been tapped and that is where the growth is. This is a country whose population is over 180 million, but what percentage of the population has insurance coverage? They said less than one per cent. That is to say that people are not aware of insurance. It means there are potential growth opportunities for insurance industry. Linkage has positioned itself into the retail market by designing these new products that are appropriate and competitive to meet the needs of the people.

    “The unique products were developed through well conducted research, which centred on the needs of the public. Most people do not buy insurance because their needs are not factored into the products. “The new products have been designed to meet every day needs of the insuring public. We will leverage all necessary platforms to convey the products to the public,” he said, adding that retail market remained the hub for the nation’s insurance development.

    Presenting the products, its Head, Strategy & Business Development, Mr. Imo Imo added that the products has been designed in a unique form and have capability of offering quality services which no other products in the industry had offerred.

    He assured that those buying Linkage products should be sure of excellent service, customer value and satisfaction as well as prompt claims settlement, adding that one of the things the firm is known for is excellence service, customer value and satisfaction and prompt claims settlement.

    Apere’s confirmation came via a  letter from NAICOM dated February 3, signed by Director, Authorisation and Policy, Pius Agbola, for the commissioner of insurance and addressed to Chairman Board of Directors, Linkage Assurance Plc. It read in part: “Having reviewed your application, the supporting documents presented, and the interaction with the Commission, the Commission is pleased to convey approval for appointment of Dr. Pius Apere as the managing director/Chief Executive Officer of Linkage Assurance Plc.”

    Apere is a Nigerian and United Kingdom (UK) trained insurer and actuary. He is expected to bring to bear his wealth of experience, garnered over the last three decades, on the Linkage brand for more value creation for shareholders and the insuring public.

  • Shareholders inject N1.4b into Linkage Assurance

    Shareholders inject N1.4b into Linkage Assurance

    Shareholders have injected N1.4 billion into Linkage Assurance Ltd, following its botched merger with Cornerstone Insurance Plc.

    Notwithstanding, the fresh fund, the underwriting firm said it still hopes to find a suitable partner to merge with in the future.

    Sequel to this, shareholders of the two companies had disagreed on merger arrangement of 30:70 which was in favour of Cornerstone.

    During the 2012 Annual General Meeting (AGM) of the Linkage Assurance in Lagos, shareholders asked the company’s board to discontinue the merger discussions, insisting that if the company intends to merge with another firm, it should not be Cornerstone.

    Speaking at the AGM, a shareholder, Mr. Nona Awo threatened that shareholders would not allow the company’s board to rail-road them into a merger arrangement of 30:70 in favour of Cornerstone. He added that minority shareholders would definitely move against it.

    In the same vein, President of the Nigerian Shareholders Solidarity Association, Mr Timothy Adesiyan, said: “We are not against merger of the company if the need arises but definitely, we will not merge with a Cornerstone.”

    However, in a new development, Managing Director of Linkage, Mr Gus Wiggle, in an interview with The Nation, said one of its shareholders increased its holdings from 17 per cent to about 53 per cent by injecting about 1.4billion into the company.

    According to him, the next stage for the company is to grow organically while management shops for people it can partner with.

    Wiggle noted that the industry is fragmented at the moment and as such, there is need for more mergers and acquisition, citing the recent merger between Custodian and Allied Insurance and Crusader Insurance as setting the pace for others to follow.

    “Until we are able to streamline our numbers and are able to work in a smaller number which is what the market really wants, we may not have companies in the industry that can compete favourably in the global sphere”, he noted.

    Explaining why the merger with Cornerstone did not work, Wiggle said the numbers which is the reason for the merger did not add up.

    “The indices of what propelled the merger in the first place suddenly did not add up and we just felt there was no reason for it to continue.

    “Also the shareholders have the final say and because they believe their interest was not been considered, we had to respect their view by ending the merger. Presently we are building the company,” he said.