L-R: Managing Director/CEO Mutual Benefits Assurance Plc, Segun Omosehin; Chairman of the Company, Dr. Akin Ogunbiyi and Company Secetary, Subomi Adenero during the company’s 22nd annual general meeting held today in Ibadan, Oyo State.
BY NKECHI NAECHE—--Mutual Benefits Assurance Plc has secured approval of the Securities and Exchange Commission (SEC) to proceed with plans to raise N2billion through right issue towards its five years strategy plan.
Mutual Benefits Assurance will be selling shares to existing shareholders by way of Rights Issue of 4,000,000,000 ordinary shares of 50 kobo each at 50kobo per share on the basis of one new ordinary shares.
Shareholders of the company had approved the Board of Directors’ proposal to raise additional equity at an annual general meeting held in Ibadan on June 27, 2018.
Acceptance List for the Rights Issue opened on Monday, 6, August 2018 and will close Friday 14, September 2018. The Rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the Issue.
The insurance company, a general business and life insurer, has an authorised share capital of N10billion with a paid up capital of N4billion. The company provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others.
Speaking at the meeting, the chairman of the company Dr. Akin Ogunbiyi said that the proceeds of the offer will be use to fund the Company’s recapitalization and growth plan, provision of additional working capital and financing the expansion of IT facilities to support the Company’s enlarged operations.
On plans for 2018, he said “We will consolidate on the modest achievements recorded in 2017 by commencing our IT transformation blueprint in 2018.”
This he said will help to eliminate slack time in its processing and ultimately enable them to focus more on customer delights and satisfaction.
He further said “Our strategic aspiration is to become the number one insurance company in Nigeria in terms of growth and profitability.”
“Despite the tough business environment we have been able to bounce back to profitability and delight our shareholders. Dividend of N0.02kobo per share will be paid to our esteemed shareholders who have stood by us over the years”
He assured that going forward dividend payment will be sustained, while urging shareholders to take up the right issue.
According to report released by the exchange, the company’s financial performance for full year ended 31, December 2017, shows that topline growth was combined with prudent management of expenses, which resulted in a 224.9percent growth in profit before tax to N1.34billion in 2017 from a loss position of N1.1billion in 2016.
Group’s total assets grew by 12.1 percent from N51.5billion in 2016 to N57.7billion in 2017.
Gross premium written also appreciated by 16 percent from N12.14 billion in 2016 to N14.03 billion while underwriting income also grew by 10percent to N11.78 billion in 2017 versus the 2016 figure of N10.70 billion.
Net claims paid by the Group in 2017 stood at N5.15 billion from N3.35 billion in 2016, resulting in a 54 percent increase from the previous year.