Nnamdi Duru, 07.28.2010
Goldlink Insurance Plc, one of the composite insurance groups in the country has recorded a revenue, generation of N87.16 million profit from its operations last year. It also raised its shareholders’ fund, which , however, fell marginally from N6.97 billion in the previous year to N6.78 billion last year.
According to the company’s 2009 Annual Report released at the 17th Annual General Meeting of the company in Lagos, direct premium recorded by the company rose from N2,81 billion in 2008 to N3.23 billion last year, a 14.95 per cent improvement. This is even as it raked in N3.24 billion as gross written premium in the same period, a 13.68 per cent increase over the figure for the previous year which peaked at N2.85 billion.
It also recorded general business net earned premium to the tune of N2.97 billion, an 8 per cent improvement on the N2.75 billion which it netted in the previous year. Net earned premium in this respect fell by 1.21 per cent, decreasing from N2.47 billion in 2008 to N2.44 billion last year. The insurance company incurred net claims to the tune of N880.05 million with respect to its general business as against N811.09 million incurred in 2008, an 8.50 per cent improvement in customers’ expectation met and surpassed.
On Goldlink’s life insurance business, the company raked in gross written premium and net earned premium to the tunes of N777.40 million and N737.85 million, an improvement of 25.08 per cent and 25.39 percent respectively. In the previous year, the figures were N621.50 million and N588.46 million respectively. Life insurance claims incurred by the company last year rose to N557.78 million, up from N340.21 million paid out to various clients in the previous year. This amounts to a 63.95 per cent improvement in level of customers’ satisfaction.
Within the same period, the group’s underwriting profit fell from N509.16 million in 2008 to N340.17 million last year, a 33.19 per cent decline. Investments income raked in by the company last year declined by 16.90 per cent falling from N238.08 million in the previous year to N197.85 million last year. The company also puts its profit before taxation at N120.04 million, an 80.36 per cent shortfall from the N611.23 million recorded the previous year, while its profit after tax fell by 84.05 per cent from N547.05 million in 2008 to N87.16 million last year.
Within the year under consideration, the company drew down its called-up share capital by 50.11 per cent, from N4.55 billion in 2008 to N2.74 billion last year, and shored up the balance in its share premium account by as much as 585.10 per cent from N388.82 million in the previous year to N2.66 billion last year.Goldlink Insurance’ contingency reserve was increased by 17.14 per cent, from N821.93 million in 2008 to N926.82 million in 2009, while its general reserve was drawn down by 24.38 per cent, from N1.21 billion the previous year to N912.61 million last year.
Shareholders’ interest in the company fell marginally by 2.73 per cent from N6.97 billion in the previous year to N6.78 billion last year. The company, however, increased the balance in its insurance fund by 24.11 per cent, raising it from N1.12 billion in 2008 to N1.39 billion in 2009, and raised its deposit administration liabilities by 36.82 per cent from N197.10 million in the previous year to N269.68 million last year.
Last year, the company reduced its investments marginally by 3.20 per cent, from N3.75 billion in 2008 to N3.63 billion last year, and increased fixed assets marginally by 3.07 percent, from N2.87 billion as at the end of 2008 accounting period to N2.96 billion last year. Its total assets appreciated by 3.07 percent from N8.48 billion as at the end of 2008 accounting period to N8.74 billion by the end of last year. The composite insurance’ actual earnings per share, however, declined by 62.71 percent, falling from 9.95 kobo in the previous year to 3.71 kobo last year.