Mutual Benefits sees stronger future with oil assets

Mutual Benefits Assurance Group is confident that its recent investment in oil assets will provide a solid foundation for sustained growth and value for stakeholders.

Akin Ogunbiyi, group chairman, Mutual Benefits said one of the key investments the company has made is in the oil sector, where it has seen production.

“This has been a long-term investment from our life fund, and by God’s grace, it will have a significant impact on the balance sheet of Mutual Benefits. We are optimistic that this will help us achieve even greater success in the coming years, Ogunbiyi disclosed this during the Company’s 29th Annual Thanksgiving held in Lagos.

On the recapitalisation rumour in the industry, Ogunbiyi noted that Mutual has already surpassed the new capital requirements that are expected in the industry.

“We are well-positioned to meet any new demands. But, I also believe that insurance companies, unlike banks, do not need to rely solely on capital for growth. The industry needs more creativity and innovative solutions to thrive.”

He believes that the regulatory landscape poses some challenges, noting that the ongoing capitalisation calls can put unnecessary pressure on the industry.

“There is a real concern that if capitalisation continues at the current pace, we might see a consolidation of the industry, with only a few companies surviving.”

However, we remain committed to Mutual Benefit’s growth. We want to maintain our position as a strong, independent player in the market, providing value to our customers and stakeholders.”

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“Investors have been wary due to the instability in the country, but we continue to push forward.”

“At Mutual Benefit, we prefer to stand on our own and maintain our brand. We have a strong company culture, and we want to keep it that way. Over the years, we have had foreign companies approach us for acquisitions, but we have turned them down.”

We value our independence and strategic direction, and we want to continue building our brand without mixing it with others.”

He further stressed that while acquisitions can sometimes be beneficial, we believe it is important to remain true to our values and identity, Ogunbiyi said.

He said, “We want Mutual Benefit to continue growing, and even when I am no longer here, the company’s legacy will live on. We are focusing on organic growth and strategic investments to sustain and enhance our position in the market.”

Reviewing the Company’s performance in 2024, Femi Asenuga, managing director, Mutual Benefits Assurance Plc said the past year was very challenging, particularly due to the galloping inflation, which had a direct impact on businesses and individuals.

He however noted that despite these challenges, Mutual Benefit came out very strong, achieving significant growth.

“For example, we recorded a gross premium written (GPW) of over N40 billion, as against N23 billion the previous year, which was a substantial increase, ” Asenuga said.

“Looking ahead to 2025, he said, “while we don’t expect drastic changes in the economic fundamentals from what we saw in 2024, we are well-prepared for the challenges. We plan to capitalize on the opportunities 2025 that 2025 will offer.

“The Federal Government’s budget for the year has already been announced, showing a considerable increase, and we intend to benefit from the economic gains this year. With God’s help, we aim to achieve another spectacular growth in 2025.”

On the recapitalisation agenda, Asenuga said Mutual Benefit has always been a proactive company, and we have never been caught unprepared when it comes to calls for capitalization. When it was called up in 2021, we responded on our general business, and we are one of the few companies that did that.

“Looking at where we stand today, we are very close to meeting the current capital requirements. We have been strengthening our capital base continuously, and we are nearly at the desired level. Our proactive actions have ensured that we are in a very strong position to meet any new capitalization demands.”