In spite of challenges in the operating environment, Mutual Benefit Assurance Plc has recorded 47 per cent growth in Gross Premium Written (GPW) from N20 billion in 2020 to N29.3 billion in 2021, the Chairman, Akin Ogunbiyi, has said.
He spoke at the company’s Annual General Meeting held in Lagos.
Ogunbiyi stated that the group’s balance sheet remained robust, with total assets of N83.8 billion, an increase in insurance contract liabilities by 34 per cent from N17.6 billion in 2020 to N23.5 billion in 2021, and a marginal increase of six per cent in investment policies from N28.4 billion in 2020 to N30.2 billion in 2021.
He said they also increased their share capital by 80 per cent from N5.6 billion in 2020 to N10 billion in 2021.
He disclosed that the performance was largely driven by a 52 per cent growth in Gross Premium Written (GPW) in their non-life insurance business, from N11.3 billion in 2020 to N17.3 billion in 2021.
He said: “The Group also recorded a 40 per cent increase in Net Premium Income from N16.1 billion in 2020 to N22.5 billion in 2021. An adverse claims experience and underwriting expenses resulted in their increases of 35 per cent and 31 per cent respectively.
“Net benefits and claims increased from N8 billion in 2020 to N10.8 billion in 2021, while underwriting expenses increased from N4.9 billion in 2020 to N6.4 billion in 2021. Despite these increases in claims and underwriting expenses, the group recorded an increase of 38 per cent in the underwriting profit of N5 billion in 2021 as against N3.7 billion in 2020”, he added.
He, however, noted that the negative impact of the economic variables on the investment markets which directly affected their fair valued financial instruments through profit or loss had overshadowed the positive financial performance and underwriting profit.