Mutual Benefits Assurance Plc has recorded a growth of 172% in its profit before tax for the 2019 business operations.
The company’s PBT rose from N1.4b in 2018 to N3.8b in 2019, while profit after tax increased by 214% from N1.1b to N3.6b.
The general performance showed that the gross written premium recorded a growth of 18% from N15.8b to N18.7b. This was disclosed by group chairman, Dr Akin Ogunbiyi, during the 24th AGM meeting held virtual penultimate day in July.
Ogunbiyi said the performance was driven by 41% growth in its life business, from N6.1b to N8.5b. Also, total assets grew by 14% from N59.4b to N67.8b. Total equity increased by 60% from N9.1b to N14.5b. Its non-life business experienced a modest growth of 4% from N9.8b to N10.2b.
In the year under review, an improved underwriting process resulted in a 13% decline in net claims expense, from N7.0b to N5.9b. The decline in net claims benefits resulted in an increase in underwriting profits by 77% from N3.1b to N5.4b. Improvement in top line performance, disciplined cost culture and rewarding investment activities ensured improved profitability in 2019.
On recapitalization, he said “after the successful recapitalization of our 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.