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Mutual Benefits returns to profitability, records N692m PBT


Underwriting firm, Mutual Benefits Assurance plc, says it recorded profit before tax of N692 million in 2013 financial period.

The chairman of the company, Akin Opeodu, disclosed this during the firm’s 18th annual general meeting in Lagos. “The Mutual Group has delivered profit before tax of N692 million from a loss position of N2.5 billion in 2012, which represents a 459 percent increase,” he said.

The chairman said its gross premium written grew marginally by 4.37 percent from N5 billion in 2012 to N5.2 billion in 2013, as there was a drop in net premium by 5.3 percent from N4.6 billion in 2012 to N4.4 billion in 2013.

He said the firm recorded an underwriting profit of N1.7 billion in 2013 from N2.6 billion in 2013.

The chairman revealed that its investment income increased by 129 percent from N37 million in 2012 to N85 million in 2013, while it recorded profit after tax of N575 million in 2013 from a loss record of N2.7 billion in 2012.

“Our asset base grew from N13.5 billion in 2012 to N14.4 billion in 2013 representing 7 per cent growth. Shareholders’ fund grew by 21 per cent from N2.7bn in 2012 to N3.3bn in 2012,” he said.

He noted that by professionalism, integrity, innovation and entrepreneur spirit, Mutual Benefits businesses, alongside the core business of insurance, operate in a broad range of sectors including transportation logistics, real estate, equipment leases, microfinance banking, oil and gas.

“Our philosophy remains using insurance to create value, harness and drive growth opportunities within the formal sector,” he said.
According to him, the firm’s partnership and strategic alliance approaches allowed it to combine skills, knowledge and operational expertise to support the creation and growth of new and existing markets.

He said their goal was to provide quality products and services which will empower and inspire its customers and it had remained true to this vision.

To actualise its strategic plans, the chairman said Mutual Benefits established and invested huge capital in setting up firms such as Mutual Model Transportation Limited-a franchise of LAGBUS; Charks Investment Limited – an asset and equipment leasing company; Mutual Homes and Properties Limited – property development for home ownership on mortgage plans; and Mutual Micro Finance Bank- for the sale and distribution of micro insurance and retail services.

Modestus Anaesoronye