Linkage Assurance Plc has posted a 74 per cent increase in profit after tax for the first half of 2026, with stronger investment income and improved operational efficiency helping to offset rising claims costs and other underwriting pressures in a challenging operating environment.

The insurer’s unaudited financial results for the six months ended June 30, 2026 showed that profit after tax rose to N3.11 billion from N1.79 billion recorded in the corresponding period of 2025, while profit before tax increased by 68 per cent to N3.27 billion from N1.95 billion.

Insurance revenue climbed by six per cent to N13.30 billion from N12.56 billion, reflecting steady premium growth despite the difficult macroeconomic environment characterised by high inflation, elevated claims costs and increased operating expenses.

A review of the financial statements showed that insurance service expenses rose sharply by 42 per cent to N11.78 billion, underscoring the growing cost of underwriting and claims management across the industry.

However, the impact of the higher claims burden was largely mitigated by robust growth in investment income.

Which surged by 70 per cent to N5.94 billion from N3.49 billion in the corresponding period of last year.

The performance reflects a growing trend within Nigeria’s insurance industry, where insurers are increasingly leveraging higher yields on government securities and fixed-income investments to strengthen earnings amid elevated interest rates.

The company’s financial position also improved during the period as total assets expanded by seven per cent to N82.19 billion from N76.90 billion as of December 31, 2025.

Shareholders’ funds equally strengthened, rising to N49.58 billion from N46.69 billion, driven primarily by retained earnings generated during the period under review.

The results come as Nigeria’s insurance industry enters a new phase following the conclusion of the recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with operators expected to deploy stronger capital bases to improve underwriting capacity, enhance risk retention and deepen market penetration.

Financial analysts said insurers with diversified earnings streams are better positioned to navigate the current operating environment, where underwriting margins remain under pressure from inflation and increasing claims costs.

They noted that the sustained improvement in investment income across the industry has become a major earnings driver, although operators would need to sustain underwriting discipline to ensure long-term profitability.

Commenting on the performance, the Managing Director and Chief Executive Officer of Linkage Assurance Plc, Daniel Braie, said the company would continue to execute its 2026 strategic agenda centred on consolidation, business growth, operational excellence, financial sustainability and customer experience.

According to him, the insurer plans to deepen its digital transformation initiatives, expand its footprint in profitable market segments and strengthen its motor insurance portfolio to support future growth.

Braie said the company remains focused on delivering sustainable value to shareholders through prudent risk management, innovation and enhanced operational efficiency while maintaining a strong commitment to customer satisfaction.