By Rosemary Onuoha
Mutual Benefits Assurance Plc has recorded 13 percent growth in Gross Written Premium, GWP, which rose to N15.8 billion for the year ended 2018 from N14 billion in the previous year.
Addressing shareholders at the 23rd annual general meeting of the company in Lagos, Chairman of the company, Mr. Akin Ogunbiyi said that the growth was driven by 11 percent increase in non life portfolio and 16 percent increase in life business.
Ogunbiyi said that premium income likewise increased by 17 percent to N15.6 billion from N13.4 billion in 2017 while net premium income grew by 19 percent to N13.9 billion from N11.8 billion in 2018.
The Chairman also disclosed that net claims and benefits paid increased by 35 percent to N6.9 billion from N5.15 billion, adding, “This underscores our commitment to ensure timely settlement of all our valid policy holders’ liabilities.”
He however said that the surge in net claims and benefits resulted to decline in underwriting profits by 17 percent to N3.1 billion from N3.7 billion.
He said, “However, the growth in our top line performance coupled with disciplined cost culture as well as carefully planned investment activities ensured we remained profitable in 2018. Profit before tax increased by three percent to N1.4 billion from N1.3 billion. Profit after tax increased by an even larger margin of 12 percent N1.2 billion from N1.02 billion.”
He said that total assets grew by three percent to N59.3 billion from N57.7 billion, while shareholders’ funds increased by 10 percent to N8.9 billion from N8.1 billion.
Ogunbiyi stated that 2018 was a very challenging year for the Nigerian economy and the insurance industry, adding, “Notwithstanding the challenges, we exploited the opportunities to record a performance that attests to the financial stamina and flexibility to the Mutual brand. 2018 was the third year of our company’s five year strategic plan themed ‘Project One reloaded.
“We are in year three of our 5-year strategic plan and we expect to consolidate on the achievements recorded in years one and two. Continued effective budgetary controls, improved IT service delivery as well as increased market penetration are expected to be critical to the actualization of the 5-Year plan.”