Mutual Benefit Assurance Plc recently commenced its rights issue through which is aims to raise additional N2 billion.
Mutual Benefit Chairman, Akin Ogunbiyi at a meeting in Lagos, reassured the shareholders of the company’s commitment to sustainable growth, in line with its 5-year strategic plan.
He said the N2 billion rights issue when realised, would be used to increase the company’s shareholders’ funds , strengthen its capital base, deepen capacity to underwrite risks, upgrade its information technology and enhance its working capital.
“The ₦0.50 rights issue of four billion ordinary shares is scheduled to be available between August 6, 2018 and September 14, 2018 on the basis of one new share for every two shares held as at October 31, 2017”, Ogunbiyi said.
On the company’s performance for the year ended December 31, 2017, he said, “the 2017 financial year revealed a 15.6 per cent growth in gross premium to N14.04 billion, from N12.14 billion in 2016, which puts the company among the league of top Nigerian insurance companies.
“Net benefits and claims grew by 53.9 per cent from 2016’s figures. The significant growth in gross premium and better management of resources made 2017 a turnaround year for the company.”
According to him, both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments.
He noted that the biggest improvement recorded by the company during the period was the N1.02 billion profit that was declared, as against the N1.35 billion loss recorded in 2016.
The shareholders were elated to hear that dividend of N160 million had been approved to them for the period under review just as the chairman reiterated that the payment of the dividend would mark the beginning of consistent dividend payments to the company’s shareholders.