NKECHI NAECHE-ESEZOBOR–Mutual Benefits Group has grown its total assets to N92.95billion at the end of 2022 financial year from N83.78billion in the year 2021.
Akin Ogunbiyi, chairman of the board who disclosed this during the firm’s 27th Annual General Meeting in Lagos, said despite the challenges facing the business, the Group’s balance sheet remains robust and the total assets recorded 10.95% growth.
According to him, the assets were boosted by an increase in insurance contract liabilities which rose by 11.21% from N23.46billion in 2021 to N26.09billion in 2022.
While investment Contract Liabilities grew by 11.02% from N30.18billion in 2021 to N33.51billion in 2022.
Shareholders’ Funds increased also appreciated by 16.12% from N18.41billion recorded in 2021 to N21.38billion in the year under review.
“Our Group recorded a 14.27% growth in Gross Premium Written from N29.30billion in 2021 to N33.48billion in 2022 driven by a 17.29% growth in Gross Premium Written in our Life insurance business, from N12.01billion in 2021 to N14.09billion in 2022 and a 12.17% increase in our non-life business from N17.28billion in 2021 to N19.39b in 2022.
The group also recorded a 28.08% increase in Net Premium Income from N22.46billion in 2021 to N28.76billion in 2022.
He added that adverse claims experience and underwriting expenses resulted in increases of 9.31% and 25.36% respectively, noting that net benefits and claims increased from N10.81billion in 2021 to N11.81billion in 2022, while underwriting expenses increased from N7.06billion in 2021 to N8.86billion in 2022.
He said despite these increases in claims and underwriting expenses, the group recorded a tremendous increase of 88.24% in the underwriting profit of N8.37billion in 2022 as against N4.45billion in 2021.
Implementation of various investment strategies resulted in an increase in the Group’s investment income by 60.60% from N1.46billion in 2021 to N2.34billion in 2022.
These investment strategies resulted in the Group’s operating profit of N3.49billion in 2022 as against the loss of (N5.54billion) in 2021 caused by the negative impact of the economic variables on the investment outlook of fairvalued financial instruments.
According to him, the year 2023 holds great hope for the Insurance industry in Nigeria with lots of opportunities. Life business will continue to lead the growth as the industry unleashes the locked potential in our population for premium generation. The increase in the minimum rate for motor insurance business is also expected to boost growth in general business.
He noted that the industry is susceptible to the interest rate regime and with the increase in the MPR from 16.5% to 17.5%, the investment income is expected to witness growth with more investments in money market instruments.
The Group will go live on the new core insurance software in 2023. This milestone will mark the conclusion of the implementation of our ICT Transformation program (Project Efficiency). The project is aimed at improving our business processes and increasing productivity.
“Also, we are enthusiastic about the progress we have made in the implementation of IFRS 17, and we remain committed to meeting up with various deadlines given by NAICOM.
Following NAICOM’s approval of our application to underwrite Agricultural products, the year looks promising for the company with increased market share and improved profitability.”
