Mutual Benefits Assurance’s Rights Issue Closes on Friday

The N2 billion Rights Issue of Mutual Benefits Assurance Plc will close on Friday, September 28 after a two-week extension by the Securities and Exchange Commission (SEC).

The company is offering 4.0 billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share. The offer had opened on Monday August 6, 2018 and was to close last Friday, September 14, 2018. However, SEC approved an extension of issue by two weeks to afford shareholders who have not been able to exercise their rights the opportunity to do so.

Commenting on the issue, the Chairman of Mutual Benefits Assurance Plc, Akin Ogunbiyi said that the company “is optimistic that the exercise will be fully subscribed, given the massive support and expression of interested received from our shareholders.”

The proceeds from the rights issue is to enable the company carry out its recapitalisation and growth plan, provide additional working capital and finance the transformation of its IT infrastructure to support its enlarged operations.

Ogunbiyi had assured customers of better service delivery, saying the company would make new investments in technologies that would help to eliminate delay in its processes.

Already the shareholders had expressed their support to the capital raise of the N2 billion rights issue intended to increase the company’s shareholders’ funds -strengthen its capital base, deepen capacity to underwrite risks, upgrade its information technology and enhance its working capital.

Ogunbiyi reassured the shareholders of the company’s commitment to a sustainable growth in line with its five -year strategic plan.

According to him, the 2017 financial year revealed a 15.6 per cent growth in gross premium to N14.04 billion from N12.14 billion in 2016, which puts 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 turnaround year for the company. Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments,” he said.

Mutual Benefits Assurance had in 2017 started implementation of a five-year strategic plan aimed at repositioning it for future opportunities and challenges.

The five-year plan focused on four key areas of the group’s business including deepening market penetration and customer acquisition, customer service delivery excellence, transformation of it people and culture and operational effectiveness.