Mutual Benefit Assurance said its profit after tax rose by 214 per cent N3.6billion at the end of the 2019 financial year.
Its Chairman Akin Ogunbiyi, disclosed this at the Company’s 24th virtual annual general meeting held in Lagos recently. According to him, the firm’s profit after tax increased by 214 per cent, from N1.1 billion in 2018, to N3.6 billion in 2019, while profit before tax rose from N1.4 billion in 2018, to N3.8 billion in 2019.
Ogunbiyi said that the Company’s Gross Written Premium also witnesed a growth of 18 per cent, from N15.8 billion in 2018 to N18.7 billion in 2019.
This performance, according to the chairman, was driven by a significant 41 per cent 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 per cent, from N59.4 billion in 2018 to N67.8 billion in 2019. Total Equity increased by 60 per cent from N9.1 billion in 2018 to N14.5 billion in 2019.
The underwriter, however, stated that its non-life business experienced a modest growth of four per cent from N9.8 billion in 2018, to N10.2 billion in 2019.
Gross Premium income increased by 16 per cent to N18.1 billion from N15.6 billion in 2018.
“Conversely, a more robust underwriting process resulted in a 13 percent 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 per cent 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,” he said.
On the company’s recapitalisation journey, he said, “after the successful recapitalisation of its life subsidiary, we are taking active steps to complete the recapitalisation 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.”