Linkage Assurance Plc has said that it settled total claims of N589.71m in the 2010 financial period.The Chairman of the company, Mr. Babatunde Fatayi-Williams, disclosed this during the companys 17th Annual General Meeting in Lagos.He said, "Linkage settled claims to the tune of N589.71m for the year ended December 31, 2010. This translates to 11.94 per cent improvement over the N526.8m paid out last year and a confirmation that the company met and surpassed its customers expectations in the year under review."The company added that last year, the companys gross premium earned was N2.31bn, while its net earned premium for the year under consideration peaked at N1.77bn. According to its annual report, the company recorded commissions of N106.53m, with its total underwriting income rising to N1.88bn.Also last year, the insurance firm raked in N19.04m, N354.15m and N59.56m from its managed funds, investments and other sources, respectively.The company also improved its bottom-line by 606.38 per cent, reversing the N55.29m loss before exceptional items and tax to end up with N279.98m profit before exceptional items and tax.The company, according to the report, maintained its share capital and share premium at N2.55bn and N729.04m in the last financial year, while increasing its revaluation and contingency reserves by 25.15 per cent and 14.82 per cent, respectively.Fatayi-Williams lamented the ongoing legal battle between Linkage Assurance and the Nigerian Deposit Insurance Corporation over its fund that was trapped in Allstates Trust Bank Plc, now under liquidation.He said the companys inability to recover the trapped funds four years down the line had remained a hindrance the expansion programmes of the company, and as such, the firm was exploring the merger option as a way out.He said, "Our company has, in the last four years, operated under great financial pressure as a result of our inability to retrieve our outstanding public offer proceeds of almost N1bn from NDIC. We have, however, striven to keep our heads above water and continued to meet all our operating obligations in spite of this challenge.""This situation as well as the harsh and unfriendly economic and financial climate currently in existence in the business world globally has regrettably made it difficult for us to pay dividends to our shareholders and we thank them for their understanding."He added that in furtherance of the approval obtained from its shareholders at the 2008 AGM, the company had initiated merger talks with a reputable insurance company for the purposes of building capacity, increasing market share and providing value for shareholders. He said they had to contend with the companys inability to pay dividends based on the prevailing economic situations and lack of capital with which to operate optimally.
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