Mutual Benefits drives growth plan on effective budget control, improved ICT Services
…as PAT grows 214% in 2019
Mutual Benefits Assurance Plc is committed to pursuing its five year growth plan, now in its third year with effective budgetary controls, improved ICT driven service delivery as well as increased market penetration via digital channels.
The company said 2019 marked the third year of its Company’s 5-Year Strategic Plan; “Project One Reloaded” and the performance continues to grow as expected.
Akin Ogunbiyi, chairman of the group who disclosed this during the 24 virtual Annual General Meeting said, it recorded an 18 percent growth in Gross Written Premium from N15.8 billion in 2018 to N18.7 billion in 2019.
This performance he noted was driven by a significant 41 percent growth in her life business, from N6.1 billion in 2018 to N8.5 billion in 2019.
“Our non-life business experienced a modest growth of 4 percent from N9.8 billion in 2018 to N10.2 billion in 2019. Gross Premium Income likewise increased by 16 percent to N18.1 billion from N15.6 billion in 2018. Conversely, a more robust underwriting process resulted in a 13% decline in net claims expense, from N7.0 billion in 2018 to N5.9 billion in 2019, Ogunbiyi noted.
“The decline in net claims benefits resulted in an increase in underwriting profits by 77 percent from N3.1 billion in 2018 to N5.4 billion in 2019. A growth in top line performance coupled with disciplined cost culture as well as highly rewarding investment activities ensured we improved our profitability in 2019”
He disclosed that Profit Before Tax increased by 172 percent from N1.4 billion in 2018 to N3.8 billion in 2019, while Profit After Tax increased by an even larger percentage of 214 percent from N1.1 billion in 2018 to N3.6 billion in 2019.
Total Assets grew by 14 percent from N59.4 billion in 2018 to N67.8 billion in 2019. Total Equity increased by a larger percentage of 60 percent from N9.1 billion in 2018 to N14.5 billion in 2019.
On the recapitalization exercise, he noted that having successfully recapitalized the life subsidiary, “we are taking active steps to complete the recapitalization of the parent Company before the stipulated deadline.
“We want to assure our shareholders that this is at the forefront of our plans and we are working towards achieving it before the end of the year, Ogunbiyi promised.