Mutual Benefits total asset rises to N83.8bn in one year

Mutual Benefits Group has grown its total assets to N83.8 billion at the end of 2021 financial year.

Akin Ogunbiyi, chairman of the board who disclosed this during the firm’s Annual General Meeting in Lagos, said despite the challenges facing the business, the Group’s balance sheet remains robust.

According to him, the assets were boosted by an increase in insurance contract liabilities which rose by 34 percent, from N17.6 billion in 2020 to N23.5 billion in 2021, and a marginal increase of 6 percent in investment policies from N28.4 billion in 2020 to N30.2 billion in 2021.

“We also increased our share capital by 80 percent from N5.6 billion in 2020 to N10 billion in 2021,” Ogunbiyi said.

Ogunbiyi said the Group recorded an impressive 47 percent growth in gross premium written (GPW) from N20 billion in 2020 to N29.3 billion in 2021.

“The performance was largely driven by a 52 percent growth in GPW in our non-life insurance business, from N11.3 billion in 2020 to N17.3 billion in 2021.”

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The Group also recorded a 40 percent increase in net premium income from N16.1billion in 2020 to N22.5 billion in 2021, Ogunbiyi disclosed.

He however noted that an adverse claims experience and underwriting expenses resulted in their increases of 35 percent and 31 percent respectively.

“Net benefits and claims increased from N8 billion in 2020 to N10.8 billion in 2021, while underwriting expenses increased from N4.9 billion in 2020 to N6.4 billion in 2021.

He said despite these increases in claims and underwriting expenses, the group recorded an increase of 38 percent in the underwriting profit of N5 billion in 2021 as against N3.7 billion in 2020.

According to him, the year 2021 was quite challenging but expressed confidence the Company’s plans to grow the business.

“I am delighted to share with you that our people across the group are ambitious to grow the business further. This is evident by our H1 2022 impressive performance, which has been released to the public he said.

He noted that the negative impact of the economic variables on the investment markets, which directly affected its fair-valued financial instruments through profit or loss, had overshadowed the positive financial performance and underwriting profit achieved during the year.