Underwriters raise investors’ hopes as earnings shot up by 600%
Determined to increase the shareholders’ confidence in the nation’s insurance industry, underwriting companies have been wooing investors with better returns on investments.
Speaking on the development in the industry, the Managing Director/Chief Executive Officer, Linkage Assurance Plc, Daniel Braie, at the end of Q3 recorded significant growth in Profit After Tax (PAT) by 601.5 per cent, growing from N84.385 million in the same period in 2018 to N591.914 million.
The Profit Before Tax (PBT) grew by N387.115 million in 2018 to N866.86 million in the review period in 2019.
In the unaudited financial statement submitted to the Nigerian Stock Exchange (NSE), the general business insurer also saw remarkable growth in top line, recording a 17.89 per cent increase year-on-year in gross written premium, moving from N4.540 billion to N5.352 billion.
Braie, said key measurements of the company remain strong despite the tough operating environment.
The company during the period exhibited high-level risk management, as its underwriting profit moved from a negative position of N689,586 million in 2018 to N295.117 million.
Committed to meeting its obligations as they fall due and providing best in class insurance solutions, the Company paid out to its customers that suffered one form of loss or the other during the period with total claims pay out amounting to N2.227 billion, a 110,17 per cent increase from N1,107 billion the previous year.
Investors in the company remain upbeat, as earnings per share stood at 7.4 kobo as against 1.1kobo in 2018, showing a 572.75 percent growth.
Total assets of the company remained strong, moving from N23.146 billion in 2018 to N24.630 billion at the end of the third quarter of 2019.