Reforms that swept through the insurance industry in the last two years have started to pay off as Mutual Benefits Assurance and Sovereign Trust Insurance (STI) joined other insurance firms that ended the 2017 financial year in profitability.
Mutual Benefits Insurance posted N14.04 billion gross premium written in 2017, representing 16 percent increase over N12.14 billion made in the previous year. Gross premium income rose by 11 percent from N11.98 billion in 2016 to N13.35 billion in 2017. Net premium income went up by 12 percent to N11.47 billion from N10.27 billion in the previous year. Net underwriting income also increased to N11.78 billion up from N10.70 billion in the same period in 2016.
The company realised N1.02 billion profit after tax in 2017 as against N134.29 million loss after tax in 2016. With this, its profit margin rose to 7 percent last year compared with -1 percent in the previous year.
Similarly, Sovereign Trust Insurance recorded 575 percent in increase in profit after tax in 2017 as PAT went up to N157.87 million as against N23.38 million in 2016.
Gross premium written rose by 33 percent from N6.4 billion in 2016 to N8.5 billion in 2017. Gross premium income increased by 23 percent to N8.3 billion in 2017 compared with N6.76 billion in the previous year. Profit before tax (PBT) jumped by 351 percent from N44.9 million in 2016 to N202.69 million last year. Both its total assets and shareholders’ funds rose by 14 percent and 5 percent respectively.
