The Nation (Nigeria)
Mutual Benefits records 41% profit growth
•Pays N19.37b claims
MUTUAL Benefits Assurance Plc has announced the results of its 2020 audited financials with gross premium written at N19.98 billion, representing a seven per cent increase from N18.69 billion recorded in 2019.
The Head, Corporate Communication, Mrs. Ellen Offo, in a statement, said the results released on the floor of the Nigerian Exchange Group (NGX), showed that profit after tax rose by 41 per fent from N3.61 billion in 2019 to N5.10 billion in 2020, while profits before tax stood at N5.04 billion, representing a 34 per cent increase from N3.75 billion in 2019.
The company also recorded a 74 per cent growth in shareholders’ fund, which rose to N23.35 billion from the N13.43 billion of 2019. Total Assets also grew by 22 per cent from N67.78 billion in the previous year to N82.87 billion in the year under review. Insurance contract liabilities for the year under review stood at N17.57 billion, a 25 per cent increase from the previous year’s N14.10 billion.
The combined claims paid by Mutual Benefits Assurance and its subsidiary, Mutual Benefits Life Assurance, was N19.37 billion, representing an eight per cent decrease on the claims paid last year. A breakdown of the claims profile for 2020 shows that the Life business paid a total of N3.54 billion, Maturity claims accounted for N7.76 billion while for Credit Life claims was N140 million. Other claims paid include indeath claims, annuity claims, surrender claims and partial withdrawal claims at N213 million, N44 million, N3.65 billion and N870 million.
The Gross claims paid for Non-life business was N3.14 billion, Motor claims was N919 million, Fire claims N476 million and General accident claims was N663 million. Special Risks (Aviation/oil & Gas) and Marine claims was N737 million and N349 million.
Managing Director, Mutual Benefits Assurance Plc, Femi Asenuga, said: “The financial result is a testament of the resilience of the Mutual Benefits brand; strong, well-capitalised and dynamic. The year was difficult globally with Nigeria not being an exception; organisations also had to contend with the devaluation of the naira, COVID-19 and other issues.