Mutual Benefits Assurance grows gross premium written by 7%
Notwithstanding the challenging business environment occasioned by debilitating effect of the novel pandemic that threatened life and businesses in 2020 globally, Mutual Benefits Assurance Plc, one of Nigeria’s foremost insurance company, were able to deliver impressive results of 7 percent growth of gross premium written.
Further analysis of its financial results also showed a rise in its profit before tax of 34 percent and increase in the company’s total assets and total equity.
The Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi made this known at the 25th Annual General Meeting (AGM) which held on Friday in Lagos.
He said, “Despite the headwinds posed by the COVID-19 pandemic, the Group recorded an impressive 7 percent growth in Gross Premium Written (GPW) from N18.70bn in 2019 to N19.98bn in 2020. The performance was largely driven by a 12 percent growth in GPW in our nonlife insurance business, from N10.17bn in 2019 to N11.35bn in 2020.
“The Group also recorded a 5 percent increase in Net Premium Income from N15.29bn in 2019 to N16.08bn in 2020. Conversely, an adverse claims experience resulted in a 32 percent decline in underwriting profit, from N5.40bn in 2019 to N3.68bn in 2020.”
According to him, the drop in underwriting profit was offset by impressive investing activities and improved cost controls, leading to a 34 percent rise in profit before tax.
Akinbiyi added, “This, in addition to the capital injection of N4.80bn led to the 22 percent increase in the total assets from N67.78bn in 2019 to N82.87bn in 2020 and the 70 percent rise in total equity from N14.53bn in 2019 to N24.69bn in 2020.”
To the delight of the shareholders, the chairman also announced the recapitalisation efforts of the company, in accordance with earlier directives set by the industry apex regulator, National Insurance Commission, NAICOM.
“On the regulatory front, I am pleased to announce that Mutual Benefits Assurance Plc has fully met the new recapitalisation requirements set by NAICOM. The 1st Phase was achieved well before the deadline of 31st December 2020 with a paid-up share capital of N5.59bn and the 2nd Phase with a deadline of 30th September 2021 was achieved on 28th June 2021 with the listed paid up share capital increased to N10.03bn.”
Subject to regulatory approvals and to strengthen the performance of the Board, the AGM proposed a finance expert, Mr. Abedemi Sonoike, to fill casual vacancy on the Board just as other retired eligible directors who presented themselves were reelected by the shareholders.
