L-R: Mr. Emmanuel Otitolaiye, Chief Financial Officer, Linkage Assurance Plc; Mr. Lekan Otufodunrin, Executive Director, Media Career Development Network/resource person, and Mr. Segun Olalandu, Head, Strategic Marketing & Communications, AIICO Insurance Plc, during the National Association of Insurance and Pension Correspondents (NAIPCO) training workshop in Lagos on Tuesday.
Linkage Assurance PLC, said it has met the N5 billion minimum capital requirements as mandated in the two phases segmented recapitalization exercise of the National Insurance Commission (NAICOM).
Addressing the members of the National Association of Insurance and Pension Correspondents (NAIPCO) on Tuesday before their training programme in Lagos, the Managing Director of the Company, Mr. Daniel Braie who was represented by the firm’s Chief Financial Officer (CFO), Mr. Emmanuel Otitolaiye, gave insight on how the company was able to meet the 50% recapitalization threshold.
He explained that as at December 31, 2019, Linkage Assurance PLC’s paid-up Capital was N4 billion, adding that to raise the remaining N1 billion, the firm at her 2019 Annual General Meeting (AGM) held on August 13, 2020, sought and received approval from Shareholders to raise the balance from the company’s accumulated retained earnings of N2.4 billion by issuance of two billion bonus shares of N0.50 kobo to existing shareholders valued at N1 billion.
It should be noted that under the two phases segmented NAICOM’s recapitalization plan, all insurance companies are expected to meet 50% and reinsurance companies 60% of the mandatory recapitalization requirements on or before December 31, 2020. The new minimum paid-up Share Capital regime demands that Life insurance operators should raise their minimum paid up share capital from N2 billion to N8 billion; those in General business to jerk up from N3 billion to N10 billion while the reinsurers should increase from N10 billion to N20 billion.
Mr Braie said having met the N5 billion for the first segment, added that the company is working assiduously to ensure that the balance of N5 billion is made available before NAICOM’s September 30, 2021 deadline.
According him, “Having succeeded in obtaining shareholders’ and Regulatory approvals, Linkage Assurance Plc has met the N5 Billion minimum capital requirements as at date earlier than 31 December 2020 deadline set by NAICOM.
“The balance of N5 Billion would have to be met on or before 30 September 2021 being deadline set by NAICOM and the Company has array of options to comfortably achieve this before deadline.”
On the Company’s strategic outlook taking into consideration various strategies including its intention and focus, he said “Our Strategy is to consistently grow our revenue and deliver strong returns and excellent customer experience, while leveraging on technology, strategic alliances, and capabilities / insights to provide world-class insurance & risk management solutions. Our guiding principles are our Core Values and vision. They underpin our desires, ambitions and aspirations aimed at reinforcing the trust of our stakeholders
“Linkage Assurance PLC has the strategic intent of crafting a niche for itself and becoming one of the market leaders in the non-life insurance market in Nigeria. We recognized that the success criteria for an insurance company are a declining expenses ratio, good risk management and high /diversified distribution efficiency. Digitalization, innovation, and utilization of new and efficient technology are also important means for achieving Linkage Assurance PLC success criteria
The achievement of these require crafting of a strategic road map that enable us to realize both short- and long-term objectives including achieving desired monthly, quarterly, and annual targets and outcomes.
“Our core strategic focus is to grow both top and bottom lines (gross premium income and profit). It is also our intent to be one of the top 5 insurance companies in the non-life segment of the market. We intend to achieve these from the focal point of our 4 strategic themes, utilizing both technology, dynamic capabilities, scale benefits and customers relationships.
“Our Service Proposition is to give our customers peace of mind through need-based insurance solutions and exceeding their expectations. We are committed to this by seeking to understand their risks and business objectives and providing insurance services to them.”