Dr. Akin Ogunbiyi, Chairman Mutual Benefits Group
BY NKECHI NAECHE––Mutual Benefits Assurance Plc ₦0.50 rights issue of 4 billion ordinary shares opens.
The right is expected to close September 14, 2018 on the basis of one (1) new share for every two (2) shares held as at October 31, 2017.
The group chairman Dr. Akin Ogunbiyi said that the issue is being undertaken in order 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 company will sell its shares to existing shareholders by way of rights issue of 4,000,000,000 ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary shares.
The Rights being offered are tradable on the floor of The Nigerian Stock Exchange (NSE) for the duration of the issue.
The underwriting firm also reassured its shareholders of the company’s commitment to sustainable growth, in line with its 5-year strategic plan.
The 2017 financial year revealed a 15.6% growth in gross premium to ₦14.04 billion from ₦12.14 billion in 2016, which puts the Company among the league of top Nigerian insurance companies. Net benefits and claims grew by 53.9% from 2016’s figures.
The significant growth in gross premium and better management of resources made 2017 a turnaround year for the company.
The company added that “Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments.”.
The biggest improvement was the ₦1.02 billion profit that was declared as against the ₦1.35 billion loss recorded in 2016.
The company has demonstrated its commitment to shareholders through the payment of ₦160 million for the 2017 financial year.
The dividend according to the company would mark the beginning of consistent dividend payments to its shareholders.
Mutual Benefits Group is among the top insurers in the industry expected to play in the Tier-1 category of the new Risk Based Capital model recently introduced by National insurance Commission ( NAICOM).