Linkage Assurance forecasts N1.16bn profit for Q4

Linkage Assurance Plc has forecast a profit after tax of N1.16bn for the fourth quarter ending 31 December, 2026, on projected insurance revenue of N7.58bn.

The insurer’s earnings forecast submitted to the Nigerian Exchange Group shows that the company expects to generate N1.22bn in profit before tax during the quarter, after accounting for insurance service expenses, reinsurance costs and operating expenses.

Linkage Assurance projected insurance revenue of N7.59bn, while insurance service expenses are estimated at N4.98bn. Allocation of reinsurance premium is expected to amount to N1.94bn, while the amount recoverable from reinsurers for incurred claims is projected at N554.1m.

Investment income is forecast at N1.407bn, contributing to a projected net operating income of N2.63bn.

The company expects operating expenses to amount to N1.406bn, leaving profit before tax at N1.220bn.

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After a forecast taxation charge of N61m, Linkage Assurance expects to close the fourth quarter with profit after tax of N1.159bn.

On cash flows, the insurer projects N1.29bn in cash from operating activities, while operating cash flow before working capital changes is estimated at N1.062bn billion.

However, net cash generated from operating activities is forecast at N379.2m, while investing activities are expected to consume N1.52bn. Financing activities are also projected to result in a cash outflow of N151.7m.

Consequently, Linkage Assurance expects a net decrease of N1.289bn in cash and cash equivalents during the period.

The company’s cash and bank balance, which stood at N5.15bn at the beginning of the period, is projected to fall to N3.86bn by the end of the fourth quarter.

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