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Mutual Benefits Up Profit By 172% FY19 * Grows Underwriting Profits By 77%

L-R: Executive Director, Operations, Mutual Benefits Assurance Plc, Mr. Biyi Ashiru-Mobolaji; Managing Director, Mutual Benefits Assurance Plc, Mr. Femi Asenuga and the Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi at Mutual Benefits Assurance Plc’s Annual General Meeting held in Lagos yesterday.

BY NKECHI NAECHE-ESEZOBOR--Top underwriter, Mutual Benefits Assurance Plc has recorded a growth of 172 percent in its Profit Before Tax for the period ended 31, December2019.

According to the company, PBT rose from N1.4 billion in 2018 to N3.8 billion in 2019, while Profit After Tax increased by an even larger percentage of 214% 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 held recently in Lagos that its
Gross Written Premium recorded a growth of 18 percent from N15.8 billion in 2018 to N18.7 billion in 2019.

This performance according to him was driven by a significant 41% 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% from N59.4 billion in 2018 to N67.8 billion in 2019. Total Equity increased by a larger percentage of 60% from N9.1 billion in 2018 to N14.5 billion in 2019.

Its non-life business experienced a modest growth of 4% from N9.8 billion in 2018 to N10.2 billion in 2019.

While Gross Premium Income increased by 16% to N18.1 billion from N15.6 billion in 2018. Conversely, a more robust underwriting process resulted in a 13% 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% 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.

On recapitalization, he said “after the successful recapitalization of our life subsidiary, we are taking active steps to complete the recapitalization 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 actualization of the 5-Year Plan.”

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