Mutual Benefits Posts N465m Loss on Exchange on Loan Provision

Mutual Benefits Assurance Plc has announced its unaudited results for the nine months ended September 30, 2016. The results showed an underwritten profit of N4.6 billion as against N3.3 billion in the corresponding period of 2015. However, a provision of N2.8 billion for an outstanding foreign exchange loss on previous borrowing, made the company to end the period with a loss of N465 million, as against a profit of N742 million in 2015.

An analysis of the nine months performance showed that gross premium written stood at N9.812 billion, down from N12.1 billion, while net profit income grew to N7.9 billion, from N6.2 billion. The improvement in the net premium income resulted from a significant fall in premium ceded to reinsurance companies. The company’s premium to reinsurance companies stood at N896 million, down from N4.5 billion in 2015. Cash and cash equivalents grew by 33 per cent of N18.6billion, an increase of 33 per cent over the previous year. In all, the company ended the period with a total assets of N50 billion, up from N46 billion in 2015.

Mutual Benefits Assurance recently embarked on major initiatives for immediate repositioning, recapitalisation, which had already been approved by shareholders and the implementation of a novel strategic roadmap from the fourth quarter of this year.

The strategic thrust which would add immense value to shareholders and customers, according to the company, would include further deepening of market penetration and large-scale customer acquisition.

The Chairman of the company, Akin Ogunbiyi recently said in spite of the economic challenges facing Nigeria as a country, there are numerous growth opportunities in insurance for the existing and potential operators.