Mutual Benefits Assurance reports N4.53 billion profit
NOTWITHSTANDING the harsh business environment in the country, Mutual Benefits Assurance group reported a profit before tax of N4.526 billion in 2014, from a position of N911 million in 2013 which represents a 397 per cent increase. The growth was made possible by the immense commitment and hard work of the staff and management of the company.
The Chairman of the company, Akin Opeodu, addressing shareholders at the 19th yearly general meeting held in Lagos, said “Our improving financial position created room to attract more businesses both in the private and public sectors. Policies in force increased by 45 per cent over 2013 resulting in gross premium written growth of 90 per cent from N8.1 billion achieved in 2013 to N15.4 billion in 2014.”
According to him, the claims ratio reduced by 15.96 percentage from (ppt) to 25.33 in 2014 as against the 41.29 per cent recorded in 2013. This is a direct result of the high level risk mitigation strategy that the management has put in place. The strategy involves proper measurement of the proposition of the premium written that needs to be reinsured based on adequate risk analysis. In view of this, reinsurance expenses grew by 549 per cent from N954 million in 2013 to N6.2 billion in 2014.
The resultant effect of the foregoing is an increase of about 39 per cent in net premium income from N6.7 billion recorded in 2013 to N9.3 billion in 2014 (compared to the 90 per cent increase in gross premium written).
Underwriting profit for 2014 was N5.5 billion, representing a 114 per cent rise against the 2013 result of N2.6 billion. As a percentage of net underwriting income, the underwriting profit margin increased by 15.82 per cent. I am also pleased to report that your company closed the year with a profit after tax of N4.1 billion, a whooping increase of 638 per cent over the N555 million reported in 2013, he said.
He explained “With an adequate investment strategy in place, the group asset base grew by 31 per cent from N32.2 billion in 2013 to N42.4 billion. Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long term investments.”