Underwriting group, Mutual Benefits Assurance Plc has grown its profit before tax by 34 percent despite the challenging business environment that characterized the 2020 financial year.
This is as the Group recorded an impressive 7 percent growth in Gross Premium Written (GPW) from N18.70 billion in 2019 to N19.98 billion in 2020.
Akin Ogunbiyi, chairman of the Company disclosing the result as its 25th Annual General Meeting held in Lagos said despite the headwinds posed by the COVID-19 pandemic, the Group recorded an impressive result.
Ogunbiyi said the performance was largely driven by a 12 percent growth in GPW in her non-life insurance business, from N10.17 billion in 2019 to N11.35 billion in 2020.
“The Group also recorded a 5 percent increase in Net Premium Income from N15.29 billion in 2019 to N16.08 billion in 2020. Conversely, an adverse claims experience resulted in a 32 percent decline in underwriting profit, from N5.40 billion in 2019 to N3.68 billion in 2020, Ogunbiyi stated.
He said the drop in underwriting profit was offset by impressive investing activities and improved cost controls, leading to a 34 percent rise in Profit Before Tax.
“This, in addition to the capital injection of N4.80 billion which led to the 22 percent increase in the Total Assets from N67.78 billion in 2019 to N82.87 billion in 2020 and the 70 percent rise in total equity from N14.53 billion in 2019 to N24.69 billion in 2020.
Ogunbiyi looking into the future said “as we enter the final year of our 5-year Strategic Plan, the successful execution of several initiatives was hastened by the COVID-19 pandemic. This has led to improved value addition in our service and product offerings. It has also allowed us to adapt quickly to the rapidly changing environment. Continuous cost control measures, improved service delivery as well as increased market penetration via digital channels have played huge roles in the success of the 5-Year Plan.”
Going forward in 2021, he said “while the new year does not necessarily provide significant relief from the effects of the pandemic, it presents another opportunity to consolidate on the tremendous feats made towards becoming the one-stop-shop for provision of financial services solutions in all our countries of operations.”
Ogunbiyi said, even as the business environment remains challenging due to economic uncertainty, its diversified business model, strong capital position and highly qualified and committed employees, provide the solid base for profitable and resilient growth, he assured.