LINKAGE ASSURANCE : QUARTER 4 - FINANCIAL STATEMENT FOR 2021

Unaudited Financial Statements

for the Period Ended

31 December, 2021

	Linkage Assurance Plc
	Unaudited Financial Statements
	for the period ended 31 December 2021
Table of contents	Page
Corporate Information	2
Financial Highlights	3
Cerification of Financial Statements	4
Notes to the Financial Statements and Summary of accounting policies	5-24
Statement of Financial Position	25
Statement of Profit or Loss and Other Comprehensive Income	26
Statement of Changes in Equity	27
Statement of Cashflows	28
Notes to the Financial Statements	29-53
Other National Disclosures:	54
- Valued Added Statement	55
- Revenue Account	56
- Financial Summary	57

Linkage Assurance Plc Unaudited Financial Statements for the period ended 31 December 2021

Corporate Information

Mission Statement Linkage Assurance Plc. is in business to provide first class insurance and other financial services to the African Insurance market. To achieve this, it has deployed exemplary management, best in class information technology infrastructure and well trained and motivated work force as vehicle for achieving the superior returns expected by shareholders.

Board of Directors
Chairman	Chief Joshua Bernard Fumudoh
Other Directors	Mr. Tamunoye Zifere Alazigha
	Mr. Olakunle Agbebi
	Mr. Okanlawon Adelagun
	Mr. Bernard Nicolaas Griesel
	Mr. Daniel Braie
	Mrs. Funkazi Koroye-Crooks
	Mr. Maxwell Ebibai
	Mr. Abubakar Shehu Dahiru
Managing Director	Mr. Daniel Braie
Company Secretary	Mr. Moses Omorogbe
Registered Office	Linkage Plaza
	Plot 20, Block 94, Providence Street
	Off Adewunmi Adebimpe Street
	Lekki-Epe Expressway, Lekki, Lagos
Registrars	Centurion Registrars
	33C, Cameron Road,
	Ikoyi, Lagos.
	www.centurionregistrars.com
Auditor	Ernst & Young
	10th Floor, UBA House
	57, Marina
	Marina, Lagos
	www.ey.com
Reinsurers	African Reinsurance Corporation, Lagos, Nigeria
	Swiss Reinsurance Company Ltd, Zurich, Switzerland
	Continental Reinsurance Plc, Lagos, Nigeria
	WAICA Reinsurance, Sierra Leone
	Arab Insurance Company, Bahrain
	Cathedral @ Underwriter Syndicates No. 2010 MMX, London
	ZEP-RE (PTA Reinsurance Company), Nairobi, Kenya
	Atrium Underwriting Limited @ Lloyd's Underwriter Syndicate, UK
	Hannover Ruck SE, Hannover, Germany
Principal Bankers	Access Bank Plc.	Keystone Bank Limited.
	Ecobank Nigeria Plc.	Polaris Bank Limited.
	FCMB Limited.	Stanbic IBTC Bank Limited.
	Fidelity Bank Plc.	Union Bank Plc.
	First Bank of Nigeria Limited.	United Bank for Africa Plc.
	Guaranty Trust Bank Plc.	Unity Bank Plc.
	Heritage Bank Limited.	Zenith Bank Plc.
Actuary	O & A Hedge Actuarial Consulting
RC No.	162306
FRC Registered No.	FRC/2012/0000000000339

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Linkage Assurance Plc Unaudited Financial Statements for the period ended 31 December 2021

FINANCIAL HIGHLIGHTS	31 Dec 2021	31 Dec 2020	Changes
Comprehensive income statement	₦'000	₦'000	(%)
Gross premium written	11,161,499	8,331,841	34
Gross premium income	10,567,706	7,952,990	33
Net premium income	5,560,973	4,450,402	25
Underwriting (Loss)/Profit	(1,391,336)	825,589	(269)
Investment and other income	1,461,983	3,895,447	(62)
(Loss)/Profit before taxation	(2,314,958)	2,536,069	(191)
(Loss)/Profit after taxation	(2,371,592)	2,395,012	(199)
Statement of financial position
Total assets	34,851,468	33,877,404	3
Insurance contract liabilities	9,814,497	5,728,661	71

Key Ratios	31 Dec 2021	31 Dec 2020
	%	%
Claims ratio	67	37
Claims ratio (net)	71	31
Underwriting expenses ratio	34	35
Fees and Commission income ratio	16	18
Management expenses ratio	21	25
Underwriting Profit margin	(12)	10

Our Performance

Gross premium written grew by 34% to N11.16billion as at December 2021 from N8.33billion recorded in prior year. The Company suffered an underwriting loss of N1.4billion as a result of increased technical expenses. Loss before tax stood at N2.3billion as at December 2021 against a profit of N2.5billion in the prior period, the major driver being increased claims expenses and FV loss on Bond investments.

Outlook

We will continue to refine our strategy in line with the political, economic, sociological and technological changes in the industry particularly the impact of Coronavirus (COVID-19) pandemic on the business landscape. We will also continue to develop innovative products, alternative channels of distributions and strategic initiatives that will enable us achieve our corporate goals and objectives. With a medium-to-long term perspective, we believe that we will benefit from growth in these initiatives.

Retail products

We have developed and launched a number of retail products. These include the Linkage Third Party Plus, which is a budget friendly motor insurance that provides not only the compulsory Third party protection but an additional Own damage protection to the tune of N250,000. This product is only available from our Company, Linkage Assurance Plc. Others are the Linkage SME Comprehensive, Citadel Shield (which provides compensation as a result of injuries from accident for pupils and students in recognized academic establishments). Linkage Events Xclusive Insurance, Linkage Shop Insurance, Purple Motor Plan (comprehensive motor cover exclusively for women), and the Linkage Estate Insurance. We are also making efforts to deploy our online portal to make our products and services available to our customers especially the digital savvy customers and enterprises.

Agric Insurance

In line with our strategic focus, we have developed a bouquet of Agricultural Insurance products as risk management initiatives for both small, medium and large-scale farmers and agribusiness. These include Livestock Insurance Solution, Multiperil Crop Insurance Solution, Fish Farm & Fisheries Insurance, Poultry Farm Insurance, Area Yield Index Insurance and Farm All Risk (Material Damage).

Operational Efficiency

In line with the vision statement, we have embarked on extensive digital transformation , this is expected to be one of the major drivers of operational efficiency as it will improve our business process, eliminate wastages, and positively impact our performances.

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Linkage Assurance Plc Unaudited Financial Statements for the period ended 31 December 2021

Certification Pursuant to Section 60(2) of Investment and Securities Act No. 29 of 2007

We the undersigned, hereby certify the following with regards to our unaudited financial statements for the period ended 31 December 2021 that:

1. We have reviewed the report and to the best of our knowledge, the report does not contain:
2. • any untrue statement of a material fact, or
   • omission to state a material fact, which would make the financial statements misleading in the light of circumstances under which such statements were made;
   • to the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the Company as of, and for the periods presented in the report.
3. We:
4. • are responsible for establishing and maintaining internal controls.
   • have designed such internal controls to ensure that material information relating to the Company is made known to such officers by others within those entities particularly during the period in which the periodic reports are being prepared;
   • have evaluated the effectiveness of the Company's internal controls as of date within 90 days prior to the report;
   • have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;
5. We have disclosed to the auditors of the Company and audit committee:
6. • all significant deficiencies in the design or operation of internal controls which would adversely affect the Company's ability to record, process, summarize and report financial data and have identified for the Company's auditors any material weakness in internal controls, and
   • any fraud, whether or not material, that involves management or other employees who have significant role in the
     Company's internal controls;

We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Securities Trading Policy

The Company has a Securities Trading Policy which governs the trading of the Company's Securities by Insiders. The Policy has been circulated to all Directors and employees and also uploaded on the Company's website. The Company has contacted the Directors and they confirmed complying with the Policy during the quarter under review.

Mr. Daniel Braie	Emmanuel Otitolaiye
Managing Director/CEO	Chief Financial Officer
FRC/2018/CIIN/00000018082	FRC/2014/ICAN/00000008524
26 Jan 2022	26 Jan 2022

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