Underwriting firms are reaping the benefits of high-yield investment portfolios amid a challenging economic environment, with Linkage Assurance Plc posting a 748 per cent increase in first-quarter profit, reinforcing signs of broader earnings rebound across the industry.
Strong Profit Growth
The underwriting firm posted a 748 per cent increase in profit after tax (PAT) to N6.25 billion for the quarter ended March 31, 2026, compared with N736.3 million recorded in the corresponding period of last year. Profit before tax (PBT) rose sharply by 689 per cent to N6.57 billion from N833.2 million, placing the company among the strongest performers in the insurance sector during the review period.
The performance comes as insurance operators intensify efforts to strengthen earnings, improve capital buffers and reposition for expected industry consolidation ahead of ongoing recapitalisation and regulatory reforms.
Investment Income Surge
A breakdown of the company’s unaudited results showed that investment and other income surged by 425 per cent to N8.6 billion from N1.64 billion in the prior year, reflecting insurers’ increasing use of high-yield investment opportunities to offset inflationary pressures and rising operating costs. The revenue, however, recorded moderate growth of six per cent to N6.4 billion. In comparison, insurance service expenses climbed by 73 per cent, driven largely by higher claims obligations and rising operational costs across the industry.
Industry Analysts' Views
Industry analysts said the result highlights the widening importance of investment income in sustaining insurers’ profitability amid weak consumer spending, foreign exchange volatility and elevated inflation. They noted that many operators are now balancing underwriting operations with stronger treasury and asset management strategies to protect margins and improve shareholders’ returns.
The company’s balance sheet also strengthened during the period, with total assets rising by 13 per cent to N87.27 billion from N76.9 billion, supported by increased investment holdings and business expansion.
Management Comment
Commenting on the performance, Managing Director, Linkage Assurance, Daniel Braie, said the company remained committed to strengthening customer confidence through prompt claims settlement and quality service delivery. “What we have promised as an insurer is to be there for our customers when they need us. That is why we prioritise claims and ensure they are delivered promptly,” he said.
