Linkage Assurance Profitability Hit by Volume of Claims Settlement
The Linkage Assurance Plc has declared a rise in its gross written premium (GWP) which rose by 34 per cent in the 2021 financial year, but the firm noted that growth in revenue did not translate to profitability given the volume of claims settlement.
According to the firm, during the year under review its GWP grew to N11.16bn from N8.33bn in the 2021 financial year, while the net underwriting income recorded N6.26bn, as against N5.076bn recorded the previous year.
The Chairman of the board, Joshua Fumudoh, while presenting the company’s 2021 financial report during its 28th annual general meeting (AGM) in Lagos, disclosed that the growth in revenue could not translate to profitability because of huge claims that hit the company in 2021, including the #EndSARS protest losses.
Fumudoh said the aftermath of the 2020 #EndSARS protest took a great toll on the insurance industry and Linkage was not exempted, stressing that the total #EndSARS claims for the insurance industry was about N20bn while Linkage Assurance Plc exposure was N1.1bn.
He stated further that the company was satisfied to have met its obligations to customers by enabling them to return to their business despite the huge losses.
The Chairman of the board revealed that in addition to #EndSARS claims, other two major claims in 2021, which had provisions of N1.5bn and N750m were already paid.
