‘Mutual Benefits has no acquisition plan’

The Chairman of Mutual Benefits Assurance Plc, Dr Akin Ogunbiyi, said the underwriter has no intention of acquiring any firm.

The disclosure comes ahead of the passage of the Consolidate Insurance Bill into law which is expected to raise the sector’s capital requirements.
The chairman revealed at the 29th yearly thanksgiving service, saying rather, the underwriter planned to embark on a strategic investment in the oil and gas sector.

Ogunbiyi assured shareholders and policyholders that the insurer would have a seamless recapitalisation exercise should the insurance industry regulator; the National Insurance Commission (NAICOM), decide to raise the bar this year.

Speaking with journalists on the sidelines of the programme, Ogunbiyi explained that due to strategic investment decisions made by the company in recent years, the company would soon become a clear leader in the insurance industry.

“Two years from now, with our strategic investment in oil assets, which have gone into production, the underwriter will be the biggest insurance company in the industry. Apart from the substantial investment, the company is equally the financier of the assets.

“From the little effort we have been making, we had to look for a commensurate long-term investment we can do with life fund. With the permission of the (NAICOM), we invested in the oil assets. We are optimistic that we will keep growing. And with the impact the assets will have on our balance sheet, the blue sky will not limit us,” he said.

The Managing Director/Chief Executive Officer, Femi Asenuga, said despite the harsh economic situation last year, the company was able to grow its gross premium written to about N40 billion compared to about N23 billion reported in the previous year.