Linkage Assurance Plc has rewarded its shareholders with a bonus issue of one for four shares by the capitalisation of N1 billion from the company’s general reserve account.
The company attributed this to its 2019 performance when it recorded a Gross Premium Written (GPW) of N6.52 billion from N5.39billion in December 2018, a 21 per cent increase, while profit before tax (PBT) also increased from N134.70 million in 2018 to N1.34billion, representing an 894 percent increase.
Speaking at its 26th Annual General Meeting (AGM), its Chairman, Joshua Fumudoh, said despite the increasingly difficult operating environment, the firm made appreciable progress in all fronts.
He said the company achieved an underwriting profit of N409 million in 2019, compared to the N772 million losses in 2018, while net claims paid was N1.7 billion compared to N2.7 billion.
Fumudoh said the significant reduction in net claims was a result of improved underwriting and effective reinsurance arrangement.
Shareholders who attended the meeting, including Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN), Sir. Sunny Nwosu, and Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria; Mrs. Bisi Bakare and Nona Awoh, applauded the board and management for such a wonderful result in 2019. They also appreciated the bonus issue, describing it as palliative to shareholders, particularly at this time, expressing optimism that Linkage is positioned to pay better dividends in the coming years.
In his remarks, Fumudoh commended the management and staff for the performance of the company, stating that they demonstrated uncommon commitment and dedication to the growth of the business despite the stiff competition and the harsh operating environment.
Also speaking, the Managing Director/CEO, Daniel Braie, said the company crafted a five-year strategic road map that would guide its operations in achieving both its short and long term goals.
The four strategic pillars in line with its balanced scorecard framework Daniel Braie noted include business growth, financial excellence, operational excellence and customer intimacy.