Linkage Assurance Plc has reported a 25 percent decline in after-tax profit to N3.12 billion for the nine months ended September 30, 2025, compared to N4.16 billion in the same period of 2024, as rising costs offset gains from investment income.
According to the nine-month unaudited financial statement of the assurance firm, insurance revenue grew to N19.2 billion in 9M’25, up from N16 billion in the same period of last year.
This was driven by the company’s ability to generate more insurance revenue from business contracts in the oil and gas, marine, and fire classifications.
Despite the notable improvement in revenue and investment return, the unaudited financial statement of the insurance firm showed that profit before tax also fell by 24 percent to N3.34 billion from N4.38 billion.
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As the cost of doing business continued to rise, accompanied by a challenging macroeconomic environment, the company’s insurance service expenses climbed 17 percent to N12.6 billion, reflecting higher claims and reinsurance costs during the period.
Also, operating expenses increased to N3.63 billion from N3.41 billion, driven by rising personnel and maintenance costs. The company also paid N226.6 million in minimum tax, slightly higher than the N219.1 million a year earlier.
Despite these pressures, investment and other income remained robust at N6.43 billion in 9M’25, representing a 36 percent increase from the N4.71 billion recorded a year earlier. The growth was largely driven by higher interest income from fixed-income securities and dividend income from quoted equities, which rose to N1.94 billion from N1.73 billion.
From a balance sheet perspective, total assets grew by 8 percent to N71.09 billion as of September 2025, while insurance contract liabilities rose 23 percent to N21.47 billion.
On the operating activities front, the company’s core business continues to take a hit, with a N655 million negative cash flow. However, the company maintained a positive cash balance of N5.9 billion, signaling its ability to settle its short-term obligations as and when due.
Linkage Assurance, with a market capitalisation of N37 billion, reported a 120 percent rise in its share price year-to-date.