Linkage Assurance Plc on Tuesday assured its shareholders that it was on course to meeting the recapitalisation requirements, despite the challenges posed by the impact of COVID-19.
The company gave the assurance in a statement made available to the News Agency of Nigeria (NAN) in Lagos.
It said that it was concurrently exploring all available options including Rights Issue, private placement, and internal capital sourcing to raise the required funds.
Mr Daniel Braie, Managing Director/CEO, Linkage Assurance Plc, assured the brokerage fraternity that the company would meet the new capital base of N10 billion.
Braie said 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 per cent increase.
“From the business generated in 2019, the company also recorded a Profit Before Tax (PBT) growth of 909 per cent, 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 per cent increase from a loss position of N290 million during the same period in 2018, ” he said.
According to him, underwriting profit rose by 153 per cent to close at N409 million during the review period, as against loss position of N773 million the previous year.
The Managing Director said that investment also grew by 10 per cent, moving from N2.46 billion in 2018 to N2.71 billion in 2019.
Recall that the National Insurance Commission (NAICOM) had, in May 2019, directed Insurance companies in the country to raise their capital, the deadline for which is Dec. 31, 2020
The Industry recapitalisation 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.