Tag: Mutual Benefits Assurance Plc

Mutual Benefits Assurance Plc has recorded N11.31 billion profit in its 2024 financial year end, representing a 92 per cent increase from N5.88 billion recorded in 2023.

The Chairman Dr. Akin Ogunbiyi made this known at the company’s 28th and 29th Annual General Meeting (AGM) in Lagos.

Dr Ogunbiyi stated that the firm’s  insurance revenue rose to N66.92 billion, a 68 per cent from N39.92 billion in 2023.

He said that the growth reflected the firm’s expanding market share and effective client’s retention strategies.

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He said: “The company also demonstrated its commitment to fulfilling its obligations to policyholders by settling claims amounting to N29.08 billion, a 52 per cent increase on the N18.99 billion settled in 2023.

“The Profit Before Tax (PBT) surged to N12.04 billion, an impressive 92 per cent increase from N6.28 in 2023, stressing that the growth was driven by prudent expense management, effective underwriting and strategic investment that yielded favourable returns in a volatile environment”.

He disclosed that a dividend of 2 kobo per share will be paid to shareholders, stating that the payment reflected that company’s continued commitment to rewarding shareholders’ confidence and participation, while also ensuring a prudent balance between current returns and future growth.

He expressed optimism that with strengthened capital and strategic execution, dividend payouts will grow in the years ahead, further enhancing shareholders value and helping sustain the firm’s market capitalisation.

The Managing Director/Chief Executive Officer Mutual Benefits Assurance Olufemi Asenuga, said the company’s priorities are clear, as it aimed to deepen its market presence, accelerate digital transformation and continue delivering customer-centric insurance services.

Mutual Benefits Assurance Plc is being positioned for sustainable profitability and long-term shareholders return, he stressed.

Underwriting firm, Mutual Benefits Assurance Plc and  its subsidiary; Mutual Benefits Life Assurance Limited have demonstrated stability in the insurance sector with payment of N25.63 billion in claims in the first nine months of 2024, Managing Director/CEO, Mutual Benefits Assurance Plc, Femi Asenuga has said.

Asenuga, who made this known in a statement, said this is amidst a challenging economic landscape where businesses are grappling with numerous difficulties including inflation and currency fluctuations that threaten their competitiveness and survival.

According to him, by consistently fulfilling its claims obligations, Mutual Benefits has demonstrated resilience and commitment to its policyholders, setting itself apart as a trusted provider in a turbulent market.

He stated that the claims breakdown shows that Mutual Benefits Assurance Plc, the general business arm paid out in nine months N7.14 billion, whereas the life business arm paid out N18.49 billion, made up of N12.06 billion on deposit administration and N6.42 billion on insurance contracts.

He said: “A further breakdown of the general business claims shows that, the company paid out N1.77 billion on motor business, followed by N1.38 billion on fire. Others are general accident N1.33 billion; Marine N1.16 billion; Aviation N715.81 million; Engineering N706.75 million;  and Oil and gas business N78.35 million, among others.

“This steadfast performance not only underscores our robust financial management capability, but also highlights our dedication to building customer trust and adapting to the dynamic needs of the Nigerian economy. By consistently meeting our claims obligations, we have been able to build trust with policyholders, which has not only increased customer loyalty and retention but has also brought us new clients.

“What we have done is to ensure we provide excellent customer service through our processes. This has enhanced client satisfaction and fostered long-term relationships that have remained critical for retention in tough economic situations like this”.

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Commenting on the life business and what the company is doing, Managing Director/CEO, Mutual Benefits Life Assurance Limited, Biyi Ashiru-Mobolaji, said its major revenue sources are from group life insurance, with claims of N5.21 billion, and individual life business, with claims amounting to N994.39 million in the nine-month period under review.

“When an insurance company pays claims promptly, it typically reflects positively on the company’s reputation and engenders customer loyalty and operational efficiency. Companies known for prompt claims processing can differentiate themselves in a crowded market, making them more appealing to potential customers with increased referrals.

“Efficient claims handling indicates a well-run organisation and that has been our focus and the reason we have continued to make investments in technology, staff training and processes. Nigeria’s economy has been heavily dependent on oil exports, which accounts for a substantial portion of government’s revenue and foreign exchange earnings. This reliance however continues to make the economy vulnerable to fluctuations in global oil prices, with domestic effects of high inflation, leading to increased costs of goods and services.

“We understand the impact that these can have on our clients’ lives and businesses. Our ability to meet our claims obligations is a testament to our operational efficiency and the trust our clients place in us,” Ashiru-Mobolaji added.