Linkage Assurance Plc has reported a 25 per cent 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 assurance firm's nine-month unaudited financial statements, insurance revenue rose to N19.2 billion in 9M'25 from N16 billion in the same period last year.
This was driven by the company's ability to generate more insurance revenue from commercial contracts in the Oil & Gas, Marine and Fire classifications.
Despite significant improvement in revenues and investment returns, the insurance company's unaudited financial statements revealed that profit before tax also fell by 24 per cent to N3.34 billion from N4.38 billion.
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As the cost of doing business continued to rise, coupled with a challenging macroeconomic environment, the company's insurance service expenses increased by 17 per cent to N12.6 billion, reflecting higher claims and reinsurance costs during the period.
Furthermore, operating expenses increased from N3.41 billion to N3.63 billion due to rising personnel and maintenance costs. The company also paid N226.6 million in minimum tax, slightly more than N219.1 million a year earlier.
Despite these pressures, investment and other income remained strong at N6.43 billion in 9M'25, representing a 36 per cent increase from the N4.71 billion recorded a year earlier. The increase was largely driven by higher interest income from fixed-income securities and dividend income from quoted equities, which increased from N1.73 billion to N1.94 billion.
From a balance sheet perspective, total assets grew by 8 per cent to N71.09 billion as of September 2025, while insurance contract liabilities increased by 23 per cent to N21.47 billion.
On the operational activities front, the company's core business continues to suffer with N655 million negative cash flow. However, the company maintained a positive cash balance of N5.9 billion, indicating its ability to settle its short-term obligations as they fall due.
Linkage Assurance, with a market capitalization of N37 billion, has seen its share price rise by 120 per cent year-on-year.
