Prime Business AfricaLinkage Assurance reported 18 per cent growth in its insurance revenue for the first quarter (Q1) of 2025, after recording N6.05 billion, against the N5.12 billion posted in the corresponding period in 2024.
The company, in its first quarter financial statement for the period ended March 31, 2025, announced that Insurance service expenses declined by 5 per cent year-on-year from N4.08 billion to N3.86 billion.
Join our WhatsApp ChannelHowever, Linkage Assurance saw its insurance service result before reinsurance contracts held grow by 111 per cent, up from N1.04 billion in the first quarter last year to N2.19 billion in the same period this year.
Also, the insurer recorded N1.89 billion in net expense from reinsurance contracts held in Q1 2025, compared to the N1.72 billion recorded in Q1 2024 – indicating an increase of 10 percent.
Furthermore, insurance service result grew by 143 per cent year-on-year, rising from N683.33 million to N292.71 million, while total investment income decreased by 42 percent from N2.86 billion to N1.67 billion.
For insurance finance expenses on insurance contracts issued, Linkage Assurance reported it declined to N67.27 million during the reviewed period, against the N515.84 million filed in the first quarter last year.
Similarly, the company’s reinsurance finance income for reinsurance contracts held fell by 86 per cent year-on-year, from N203.60 million to N29.14 million, resulting in a net insurance finance expense of N38.12 million in Q1 2025, compared to N312.23 million in Q1 2024.
Nevertheless, Linkage Assurance posted N1.93 billion as net insurance and investment result – which increased slightly by 3.22 per cent year-on-year from N1.87 billion – but this was reduced by other operating expenses of N1.10 billion in Q1 2025, which is similar to the N1.10 billion reported in the same period last year.
As a result, the insurer recorded a profit before tax of N829.59 million in the first quarter this year, compared to the N769.37 million posted in the corresponding period in 2024, reflecting an increase of 8 per cent.
However, Linkage Assurance’s net income was burdened by a 151 per cent increase in income tax, which was N96.65 million in Q1 2025, up from N38.46 million in Q1 2024.
This led to the insurance company recording just a 0.27 per cent increase in profit after tax (PAT), which rose from N730.90 million in Q1 2024 to N732.94 million in Q1 this year.
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