Mutual Benefit Assurance Plc has announced profit after tax of N1.15 billion in its business for the year ended December 31, 2018.
By this performance, the company increased its net profit by 12 per cent, when compared to the N1.02 billion net profit it achieved in 2017.
Profit before tax for the period increased by three per cent, from N1.34 billion in 2017, to N1.38 billion in 2018.
Announcing this to shareholders at the 23rd Annual General Meeting of the company held in Lagos recently, the Mutual Benefit Chairman, Akin Ogunbiyi, said despite that 2018 was a challenging year, Mutual Benefit exploited the opportunities to record the feat.
“Gross premium income likewise increased by 17 per cent to N15.6 billion, from N13.4 billion in 2017. Net premium income grew by 19 per cent, from N11.78 billion in 2017, to N13.96 billion in 2018,” Ogunbiyi informed the shareholders.
He said during the year under review, the company’s net claims and benefits paid out increased substantially by 35 per cent, from N5.15 billion in 2017, to N6.98 billion in 2018.
He said this underscored the company’s commitment to ensuring timely settlement of all valid policyholders’ liabilities.
“The surge in net claims and benefit resulted in a decline in underwriting profits by -17 per cent from N3.7 billion in 2017, to N3.1 billion in 2018, however, the growth in our top line performance coupled with disciplined cost culture as well as carefully planned investment activities ensured we remained profitable in 2018.
“Profit after tax increased by even a larger percentage of 12 from N1.02 in 2017 to N1.15billion in 2018”, Ogunbiyi said.
On the new capital base directive by the regulator, Ogunbiyi, said Mutual Benefit Assurance board has determined to ensure that the company and its life subsidiary meet the new capital requirement ahead of the June 30,2020 deadline.