Insurance World

Mutual Benefits Assures Shareholders On Recapitalization Deadline * Grows Underwriting Income To N13.9bn

Dr. Akin Ogunbiyi


*Pays N3Billion Claims



BY NKECHI NAECHE—-Ahead of the June 2020 recapitalization deadline for insurance industry, the board of Directors of Mutual Benefits Assurance Plc has assured its shareholders that it will meet required capital base before the deadline set by National Insurance Commission (NAICOM)The Chairman of the company, Dr. Akin Ogunbiyi gave this assurance during the company’s annual General meeting held in Lagos, that the board is determined to ensure that the company and it life subsidiary also meet the new capital requirement ahead of the June 2020.
He said resolutions have been proposed to increase the authorised share capital from N10billion to N15billion and also to authorize the qdirectors to raise additional capital for tge company to ensure that the company  and her life subsidiary meets the requirement.On financial performance he said company recorded a net underwriting income of 13.9 billion for the year ended 31 December 2018. This represents a 19% increase from the N11.77 billion recorded in 2017 for the Group.  While gross premium written also grew by 13% from N14.03 billion in 2017 to N15.84 billion in the year under review. Net premium income stood at   N13.47 billion representing an 18% increase from N11.46 billion in 2017, while profit after income tax stood at N1.149 billion; a 12% increase from 2017 figure of N1.02 billion.

The 70% percent increase in claims paid over the 2017 figures impacted the company’s underwriting profit which dipped by 17% to N3.05 billion. 

The company paid claims amounting to N3 billion in the period under review. Motor claims were the highest, amounting to N1.10 billion, followed by fire which was N664 million, General Accident N330 million while Aviation risks attracted N441.90 million. Claims paid on other classes of business include Engineering N166 million; Oil and Gas risks N108.90 million and Marine N241.60 million.

Speaking further on the claims he said “the claims paid shows our commitment to meeting our obligations to our esteemed customers.”

According to him, the company has put in place systems and processes to ensure efficient claims service delivery.

“We are committed to prompt settlement of all genuine claims, as this aligns with our mission statement of “Transcending the expectations of our customers for the satisfaction of their wealth protection needs through the provision of qualitative insurance and risk management services thereby creating values for all stakeholders.”

“2019 is the third year of our five year strategy plan and we have made remarkable progress.  Our IT transformation will soon be completed which will take our service delivery level to greater heights with innovative customer centric solutions.”

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