Mutual Benefit Assurance Grows Profit by 172%

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Mutual Benefits Assurance Plc said it grew its profit before tax by 172 percent for the period ended 31, December2019.

According to the company, during the period under review, its profit before tax rose from N1.4 billion in 2018, to N3.8 billion in 2019, while profit after tax increased by an even higher percentage of 214 per cent, from N1.1 billion in 2018, to N3.6 billion in 2019.

The company’s group chairman Dr. Akin Ogunbiyi disclosed this during its 24th virtual AGM recently held in Lagos.

He said that the company’s Gross Written Premium recorded a growth of 18 per cent, from N15.8 billion in 2018, to N18.7 billion in 2019.

This performance, according to Ogunbiyi, was driven by a significant 41 per cent growth in its life business, from N6.1 billion in 2018 to N8.5 billion in 2019.

He added that total assets grew by 14 per cent, from N59.4 billion in 2018 to N67.8 billion in 2019. Total Equity increased by a higher percentage of 60 per cent from N9.1 billion in 2018 to N14.5 billion in 2019.

Mutual Benefit Assurance, however, said the company’s non-life business experienced a modest growth of four per cent from N9.8 billion in 2018, to N10.2 billion in 2019.

Gross Premium income increased by 16 per cent to N18.1 billion from N15.6 billion in 2018.

“Conversely, a more robust underwriting process resulted in a 13 percent decline in net claims expense, from N7.0 billion in 2018 to N5.9 billion in 2019.

“The decline in net claims benefits resulted in an increase in underwriting profits by 77 per cent from N3.1 billion in 2018 to N5.4 billion in 2019.

“A growth in top line performance coupled with disciplined cost culture as well as highly rewarding investment activities ensured we improved our profitability in 2019,” he said.

On the company’s recapitalisation, effort, he said, “after the successful recapitalisation of its life subsidiary, we are taking active steps to complete the recapitalisation of the parent company before the stipulated deadline.

“We want to assure our shareholders that this is at the forefront of our plans and we are working towards achieving it before the end of the year.”

Speaking on its 5-years strategic plan, he said: “We are in Year 4 of our 5-Year Strategic Plan. We continue to consolidate on the achievements of prior years.”

Speaking further on covid-19, he said: “the spread of the coronavirus has led to the rapid adoption of technologically enabled solutions for business operators and our company is not left out.

“Continued effective budgetary controls, improved ICT driven service delivery as well as increased market penetration via digital channels are expected to be critical to the full actualisation of the 5-year plan.”