Earnings Forecast: Linkage Assurance targets N291.09m profit in Q1
- Expects N4.92bn gross premium
Linkage Assurance Plc has projected to make N291.08 million as its profit after tax (PAT) for the first quarter of 2021, while it expects N4.92 billion gross premium written for the period.
In its Q1 earning forecast filed on Nigerian Stock Exchange (NSE), the insurance firm also projected N291.09 m as profit after tax and N415.85 million as profit before tax for the period.
For the fourth quarter ended December 31, 2019, the underwriting firm’s unaudited fourth quarter report ended December 31, 2019 submitted to the Nigerian Stock Exchange (NSE), showed a Gross Written Premium(GWP) of N6.52 billion as against N5.59 billion during the same period in 2018, indicating a 21 per cent increase.
From the business generated in 2019 review period, the company also recorded a Profit Before Tax (PBT) growth of 902 per cent, moving from N134.7 million in 2018 to N1.35 billion during the review period.
Profit After Tax (PAT) also grew to N930.24 million, a 421 percent increase from a loss position of N290.12 million during the same period in 2018.
The performance according to the company has come from improved underwriting performance, as well as from investment returns, which saw the company coming out stronger during the review period.
Underwriting profit rose by 149 per cent to close at N375.622 million during the review period, as against loss position of N772.48 million the previous year, while investment also grew by 10 per cent, moving from N2.46 billion in 2018 to N2.71 billion in 2019.
The company’s total assets also appreciated by seven per cent to close at N24.72 billion, as against N23.15 billion in 2018.
In the statement to the NSE, Daniel Braie, managing director and chief executive officer Linkage Assurance Plc, said the company would continue to refine its strategy in line with the political, economic, sociological and technological changes within our operating environment.
Braie also said that the company would 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, the company believes that it will benefit from growth from these initiatives. “We will consolidate on the ongoing initiatives to improve our operational efficiency so as to reduce the cost of doing business, improve business processes, eliminate wastages and achieve higher margins in our core business,” he said.