Mutual Benefits Assurance Plc has recorded an 18 per cent growth in Gross Written Premium for the 2019 financial year at N18.7 billion from N15.8 billion in 2018.
The company stated that the performance was driven by a significant 41 per cent growth in its life business which stood at N8.5 billion in 2019 from N6.1 billion in 2018.
Addressing shareholders at the company’s virtual annual general meeting in Lagos, Chairman of the company, Dr Akin Ogunbiyi said that non-life business experienced modest growth of four per cent at N10.2 billion in 2019 from N9.8 billion in 2018, even as gross premium income increased by 16 per cent to N18.1 billion from N15.6 billion in 2018.
He added that a more robust underwriting process resulted in a 13 per cent decline in net claims expense, from N7.0 billion in 2018 to N5.9 billion in 2019.
Ogunbiyi said: “2019 marked the third year of our company’s 5-year strategic plan; “Project One Reloaded” and the performance continues to grow as expected.
“The decline in net claims benefits resulted in an increase in underwriting profits by 77 per cent from N3.1 billion in 2018 to N5.4 billion in 2019. Growth in top-line performance coupled with disciplined cost culture as well as highly rewarding investment activities ensured we improved our profitability in 2019. Profit before tax increased by 172 per cent from N1.4 billion in 2018 to N3.8 billion in 2019. Profit after tax increased by an even larger percentage of 214 per cent from N1.1 billion in 2018 to N3.6 billion in 2019.
“Total assets grew by 14 per cent from N59.4 billion in 2018 to N67.8 billion in 2019. Total equity increased by a larger percentage of 60 per cent from N9.1 billion in 2018 to N14.5 billion in 2019.”
Ogunbiyi said that the company could meet the recapitalisation mandate before the end of the year, adding: “On the regulatory front, 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.”
Also speaking at the occasion, Managing Director/CEO of the company, Mr Olufemi Asenuga said that the company is taking proactive measures to ensure the retention of shareholder value despite the COVID-19 pandemic.
He said: “The extent of the impact of this scourge on business performance is uncertain. However, we are taking proactive measures to ensure the retention of shareholder value. Some of these activities include the reduction of travel, elimination of noncritical expenses and aggressive adoption of online means of communication to reduce printing and cost of physical interaction. To take advantage that this pandemic presents, we have deployed bespoke solutions that offer protection for our existing and potential clients against the effect of this scourge.
“Above all, we will continue to focus on putting our customers first in all our actions because they are the bedrock of our successes. With the continued unflinching support of our dynamic Board, partners (including our agents and brokers) and other stakeholders, we will ensure that we continue to provide superior service experience to the delight of our stakeholders,” he said.