Linkage Assurance Plc’s 2024 Financial Performance: A Story of Growth and Resilience
Linkage Assurance Plc, a prominent player in the Nigerian insurance landscape, announced impressive financial results for the 2024 financial year, showcasing robust growth and resilience in the face of a challenging operating environment. The company’s financial performance, presented at its 31st Annual General Meeting (AGM) held in Lagos, highlighted a significant 50% surge in insurance revenue, reaching N22.23 billion compared to N14.84 billion in 2023. This remarkable growth was primarily attributed to strategic market expansion initiatives and robust operational performance across various insurance lines, including motor, fire, oil and gas, marine, and general accident.
The company’s Profit Before Tax (PBT) for 2024 stood at N5.3 billion, experiencing a marginal 3% decline compared to the N5.5 billion recorded in the previous year. While this dip might seem concerning at first glance, it’s important to consider the broader economic context and the company’s overall performance. Investment income and other revenues displayed a positive trend, increasing by 5% to reach N9.48 billion from N9.06 billion in 2023. Furthermore, the company’s total assets witnessed a significant jump to N65.68 billion from N51.33 billion in 2023, indicating a strong financial position and robust growth potential.
The success achieved by Linkage Assurance Plc was attributed to a combination of factors, including sound executive management, disciplined underwriting practices, prudent investment strategies, and a strong corporate governance culture nurtured by the Board of Directors. These elements collectively contributed to navigating the prevailing economic headwinds and delivering a commendable financial performance. The Chairman of the Board, Joshua Fumudoh, emphasized the company’s commitment to upholding these principles to ensure continued resilience, innovation, and long-term value creation for shareholders.
A key driver of Linkage Assurance Plc’s impressive insurance revenue growth was the strategic expansion across various insurance segments. The company fortified its presence in motor, fire, oil and gas, marine, and general accident lines. This strategic diversification, coupled with strengthened partnerships and a robust broker-driven distribution network, enabled the company to capture a larger market share and drive revenue growth. The insurance service result also witnessed a remarkable improvement, surging by 193% to N766.9 million from N261.5 million in 2023. This positive outcome was attributed to enhanced underwriting practices, improved claims containment strategies, and continuous portfolio optimization.
Furthermore, Linkage Assurance Plc continued to prioritize its commitment to meeting claims obligations, paying out N4.58 billion in claims during 2024, compared to N4.49 billion in the previous year. This underscores the company’s dedication to honouring its insurance contracts and providing financial security to its policyholders. The company’s robust claims-paying ability reinforces its reputation as a reliable and trustworthy insurance provider, strengthening its position in the market. The consistent and timely settlement of claims fosters trust among policyholders and contributes to the company’s positive image within the insurance industry.
At the AGM, shareholders lauded the company’s performance and endorsed a bonus issue of one-for-five, equivalent to N1.54 billion. This strategic move aims to strengthen the company’s share capital position, utilizing retained earnings for capitalization. Shareholders expressed their support for this decision, recognizing its potential benefits in the context of a potential recapitalization exercise anticipated within the insurance sector. Their optimism about the company’s future trajectory was evident, driven by the company’s strong track record of meeting claims obligations and its proven ability to capitalize on growth opportunities within the industry. This optimistic outlook, combined with the board and management’s commitment to strategic expansion and operational excellence, positions Linkage Assurance Plc for continued success in the Nigerian insurance landscape.
