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NSE lifts ban on Goldlink Insurance

Goldlink Insurance

The Nigerian Stock Exchange (NSE), one of Africa’s biggest bourses, has lifted the suspension placed on trading in the shares of Goldlink Insurance Plc, on Monday February 18, 2019.`

A notification letter signed by the Head of Listing Regulations of the Exchange, Godstime Iwenekhai, revealed that ban placed on the shares of Goldlink Insurance has been removed following the submission of the insurer’s outstanding Audited and Interim Financial Statements to the Exchange.

Recall that on July 5 2017, the NSE announced the suspension on trading in shares of Goldlink Insurance and 16 other companies over failure to submit relevant accounts to the Lagos bourse upon the expiration of the cure period.

Analysis of the composite financials for nine months ended September 30, 2018 revealed that the gross premium written appreciated by 3.9 percent to N845.13 million relative to N813.34 million posted in comparable period of 2017.

Net underwriting income, which is net premium income plus commission income and fees stood at N820.03 million in the period reviewed, indicating 1.96 percent expansion over N804.24 million reported a year prior.

The insurer’s underwriting profit spiked 26.51 percent to N162.2 million in the considered period, basically driven by 15.91 percent decrease in underwriting expenses to N148.27 million from N128.21 million in comparable period of 2017.

Although management expenses dip 10.51 percent to N375.59 million, the insurer incurred N132.44 million losses before tax in the first nine months of 2018 basically of its inability of control management expenses within the limit of underwriting profit and investment income. After-tax losses decelerated to N149.25 million compared to N243.29 million in similar period of 2017.

The insurer’s total assets stood at N1.75 billion in the period considered, indicating 6.91 percent decline from N1.88 billion reported in similar period of 2017. Total liability mounted 8.29 percent higher to N8.1 billion in the first nine months of 2018 from N7.48 billion recorded a year earlier. Shareholders’ funds further fell to a deficit of N6.35 billion compared with N5.60 billion reported in the first nine months of 2017.

Goldlink Insurance Plc has issued share capital of 2.46 billion Ordinary Shares of 50 kobo each as at the last day of 2018. Unity Kapital Assurance Plc, the insurer’s major shareholder owns 1.27 billion shares, representing 51.53 percent stake. Other shareholders account for the remaining 48.47 percent, representing 1.19 billion shares.

The last trading price of the company’s shares before suspension was N0.53.

Goldlink Insurance is a Lagos-based insurer that underwrites classes of insurance including general insurance, life and pension, special risk insurance. It was enlisted on the local bourse in February 2008.

 

ISRAEL ODUBOLA