Mutual Benefits opens rights issue

Mutual Benefits Assurance Plc’s ₦0.50 rights issue of 4 billion ordinary shares held as at October 31, 2017, is open for subscription until September 14, 2018. The company had received shareholders’ nod at 22nd Annual General Meeting (AGM) to raise additional ₦2billion rights issue on the basis of one new share for every two held. 

The fund, according to the Chairman, Mutual Benefits, Dr. Akin Ogunbiyi, is intended to increase the company’s shareholders’ funds, and strengthen its capital base.
Also, the fresh capital will help deepen its capacity to underwrite risks, upgrade information technology, and enhance working capital. Ogunbiyi reassured shareholders of the company’s commitment to sustainable growth, in line with its five-year strategic plan.
   
The 2017 financial year revealed a 15.6 per cent growth in gross premium to ₦14.04billion from ₦12.14billion in 2016, which put the company among the league of top Nigerian insurance companies. Net benefits and claims grew by 53.9 per cent from 2016’s figures.  
   
The significant growth in gross premium and better management of resources made 2017 a turttnaround year for the company. Ogunbiyi said: “Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments.”He reiterated that the payment of dividend would mark the beginning of consistent payments to its shareholders.
 
The biggest improvement was the ₦1.02billion profit that was declared, against the ₦1.35billion loss recorded in 2016. The company also demonstrated its commitment to shareholders through the payment of ₦160million as dividend for the 2017 financial year.