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Tag: Mutual Benefits

  • Mutual Benefits begins N2b Rights Issue next month

    Mutual Benefits begins N2b Rights Issue next month

    Mutual Benefit Assurance Plc is set to raise additional capital of N2 billion through rights issue this month, its Managing Director, Segun Omosehin, has said.

    He made this known at a dinner   by both Mutual Benefits Assurance Plc and its subsidiary- Mutual Benefits Life Assurance Ltd, in honour of their clients in Lagos.

    The N2 billion to be realised, he said, will enable the company to beef up its operations, give the it a better standing in the market and make it remain a big player in the Nigeria and Africa insurance markets.

    On innovation, he said Mutual Benefits is an unconventional company, which thrives more on innovation, adding that it wants to do things that are not the norms of the market.

    He said the company is open to new ideas and innovations that can help improve the market and the company’s bottom line.

    He disclosed that the firm will soon create a portal for insurance brokers and its partners across the country to ensure better customer service delivery.

    The portal, he said, will enable its partners log in and transact all forms of life and general insurance business without necessarily coming to their office.

  • Lafarge Africa, Mutual Benefits seek N133.6b from shareholders

    Lafarge Africa Plc and Mutual Benefits Plc have launched bids to raise more than N133.6 billion through rights issue of new ordinary shares.

    The two companies yesterday separately filed application with the Nigerian Stock Exchange (NSE), seeking to raise new equity funds from existing shareholders.

    Lafarge Africa plans to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares will be pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business yesterday.

    Mutual Benefits is seeking to raise N2 billion through a rights issue of 4.0 billion ordinary shares of 50 kobo each at nominal value of 50 kobo per share. The rights will be pre-allotted on the basis of one new ordinary share for every two ordinary shares held as at the close of business yesterday.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, has already indicated it will subscribe fully to its rights. LafargeHolcim had proposed to pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Many Nigerian shareholders had raised objections to the debt-for-equities deal, which they said could give the majority core investor undue advantage to increase its controlling equity stake in the company.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line. Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.

     

  • Mutual Benefits appoints Ashiru-Mobolaji ED

    The Board of Directors of Mutual Benefits Assurance Plc has announced the appointment of Mr. Biyi Ashiru-Mobolaji as Executive Director, Operations.

    The appointment, effective from April 1, is aimed at repositioning the company for greater efficiency.

    In his new role, Ashiru-Mobolaji will oversee the Technical and Marketing and Distribution Channels of the company. Prior to his new appointment, Ashiru-Mobolaji was the General Manager in charge of the Marketing and Distribution Directorate of the company, a position he has held since early last year.

    Ashiru-Mobolaji is an Insurance graduate of Ibadan Polytechnic with an MBA from Lagos State University(LASU). He is an Associate Member of the Chartered Insurance Institute of Nigeria who made a distinction in Aviation Insurance in the professional Insurance examination. He is also an Alumnus of the Lagos Business School, where he attended the Senior Management Programme (SMP).

     

  • Mutual Benefits cautions customers against cash payment to staff

    Mutual Benefits Assurance Plc has cautioned its customers not to pay their premium in cash to any member of its staff.

    This is coming on the heels of allegation of unethical practices going on in Mutual Benefits by some insurance agents.

    The Head, Corporate Communication, Ellen Offo, who made this known in a statement, noted that as a deterrent against fraudsters, the company has instituted a policy against payment of cash to members of staff with the accepted mode of payment is clearly stated on all proposal forms and policy documents.

    In addition, she said the company has put in place secure and convenient cashless means of payment of premium such as direct debit, bank branch pay-direct, web-pay, online transfer, along with our third party insurance scratch cards.

    She assured policyholders of safety of their funds and investments while calling on potential customers to be wary of fraudsters.

    She, however, said the company was investigating alleged unethical practices being perpetrated by a staff.

    She said: “While there was no mention of any specific member of staff in the report we do commiserate with the customers involved and we have taken immediate steps to investigate and urgently look into the issues raised in the report. We use this medium to assure our numerous customers that we shall prosecute anyone found to be complicit. Mutual Benefits has zero tolerance for fraud hence it is viewed with grave seriousness.

    “Mutual Benefits has operated for over 21 years in the insurance landscape as a leading brand in the sector with a reputation for speedy claims settlement and excellent service delivery. It is strong, well-capitalised and committed to protecting the interests of customers at all times.

    “Between January and February this year, claims paid are in excess of N3 billion while over N50 billion was paid as claims settlement between 2012 and 2016 across our business lines. This is a testimony of the value we place on our customers and their needs. Customers can access their transactions, from the comfort of their homes on our web portal or by calling Mutual Care Line,” she added.

  • Mutual Benefits eyes top spot in 2021   

    Mutual Benefits Insurance has set a five-year strategic roadmap for it to emerge the number one insurance company in Nigeria by 2021, Chairman of the company, Dr. Akin Ogunbiyi, has said.

    He made this known at the company’s 21st  year annual thanksgiving service in Lagos.

    Ogunbiyi said the company has engaged the service of KPMG to chart a new focus for the company.

    He said the company strategic aspiration is anchored on being the fastest growing insurance company through innovation, number one in customer service delivery; lead the industry in efficiency and in profitability.

    He said they were not unaware of the daunting task ahead of them in crafting the new vision of taking the company to the top of the industry in a recessed economy.

    He urged workers in the company to ensure their words and actions are influenced by their strategic aspirations.

    He said their determination to forge ahead is premised on their trust in the knowledge, professionalism and dedication of sthe  stakeholders.

    Speaking to the staff and management of the company, he said: “While we build a culture of accountability for greater results, we must ensure dramatic performance improvement through greater individual accountability. Our words and actions must be influenced by our strategic aspirations. We will only do things that guarantee us assuredly towards being a leading world class company.

    “There must be transparency, open enhanced teamwork, trust, effective communication and dialogue, well intentioned and conscientious execution of roles and sharper clarity. Let us genuinely focus and be sincerely accountable in our individual but committed contribution to the results that will engender growth and profitability.”

    He added that as part of its strategic plan, Mutual Benefits plans to invest more in technology to develop innovative customer- centric products that will meet the need of its current and potential customers, thereby increasing its market share.

    He disclosed that in 2016, the company upgraded its customer care unit with its technology driven Mutual Care to serve its customers better, adding that a team of dedicated professionals are on hand to provide seamless service to its esteemed clients.

    On claims payment, as at end of November 30,2016, the company  paid claims in excess of N1.5billion in non life business, about N1 billion for life (death claims), in addition to about N10.6 billion paid out as maturities/ surrender under its investment/ deposit administration portfolio by its life company. In the last 20 years, the Mutual Benefits brand has continually demonstrated its commitment to honouring its obligation by consistently improving its claims administration processes and procedures, he said.

  • Mutual Benefits grows asset to N46b

    Mutual Benefits grows asset to N46b

    Mutual Benefits Assurance Plc’s asset base grew  from N44.1 billion in 2014 to N46.1 billion in its financial year, which ended 2015.

    The company, during the year under review, further increased its equity investment in its subsidiary, Mutual Benefits Life Assurance Limited by injecting N2billion into the business to bolster the assets cover of its operations in line with the newly released prudential guidelines of the National Insurance Commission (NAICOM).

    The firm’s gross premium written declined marginally by six per cent to N14.6 billion in 2015 from N15.5 billion in 2014.

    Speaking at the company’s 20th Annual General Meeting (AGM), Chairman, Mutual Benefits, Akin Ogunbiyi said the shortfall was driven by the lull in the economic activities during the year, resulting in delayed investment decisions and low disposal incomes.

    He said though the underwriting profit for 2015 reduced to N3.9 billion from N5.2 billion in 2014, representing a decline of 26 per cent, it is one of the highest in the industry as a percentage of net premium income at 50.3 per cent.

    According to him, the height was achieved as a result of the strong risk mitigation strategies adopted by the management. He said the divestment of the group from some non-insurance subsidiaries in 2015, including Mutual Model Transportation Limited and Charks Investment Limited, contributed negatively to the decrease in profit after tax from N4.2 billion in 2014 to NO.8 billion in 2015.

    He said: “Other key contributor was a fair value gain in investment properties of N2.6 billion in 2014 that was not repeated in 2015. It is worth noting that our foreign investments, Mutual Benefits Assurance Liberia and Mutual Benefits Niger Republic contributed about 13 per cent to the bottom-line of the group in 2015. Key business trends from these subsidiaries in 2016 remain positive with dividends already distributed by Mutual Benefits Liberia.”

    He told the shareholders that the Board was unable to declare dividends as a result of the economic downturn, which has affected the company’s ability to achieve the turnaround of its negative reserves in the envisaged time.

    “We have, however, embarked on some strategic initiatives geared towards speedily improving our financial position and performance and ensuring that we are able to declare dividends soon. In order to implement our new strategic initiatives, be ready for the regulatory ‘risks based’ requirements and take advantage of identified growth opportunities, your company is set to raise additional capital between fourth quarter of 2016 and first quarter of 2017 in line with the shareholders’ resolution of  January 30, 2014.

    “The resolution authorised the company to raise additional capital via the issue of debt or equity or a combination of both whether by way of private placement or otherwise or by way of an offer for subscription, upon such terms and conditions to be determined at the discretion of the Directors and subject to any requisite regulatory approvals,” he added.

    On board changes, Ogunbiyi added that since the last AGM, Prince Nasir Ado Bayero and Dr. Moses Ajaja resigned from the Board of the company with effect from August 6 and December 31, 2015.

    “On June 30, 2016, our erstwhile Chairman, Mr. Akin Opeodu, resigned from the Board after 21 years of service to the Company. Mr. Akin Opeodu joined the Board from inception in 1995. He was the Chairman of the Company between 2002 and 2007 and also between 2014 and 2016. He has contributed immensely to getting the Company to where it is today.

    “In January 2016, Messrs Lamis Shehu Dikko and Akinboye Oyewumi were appointed to the Board. I resigned from my position as the Group Managing Director and was elected to chair the Board effective 1st July, 2016,” he noted.

  • IGI, Mutual Benefits, others yet to submit annual accounts

    About six months after 2012 financial year ended and three months after the June 30 deadline given insurers for the submission of annual accounts, some insurance giants in the industry are yet to submit their International Financial Reporting Standard (IFRS) accounts to the National Insurance Commission (NAICOM).

    According to the 2012 financial statements submission status of insurance companies byNAICOM as at August 27th, 2013, out of the existing 57 insurance companies and two re-insurance companies, 31 companies submitted their accounts out of which only nine got approval.

    Veteran insurers like Industrial and General Insurance Plc (IGI), Royal Exchange Insurance Plc, NICON Insurance, Niger Insurance, Goldlink Insurance Plc, Mutual Benefit,Cornerstone, International Energy InsurancePlc (IEI), make the list of companies that are yet to submit their report.

    Others are Union Assurance, African Alliance Insurance Plc, Alliance and General Life Assurance Plc, Capital Express, LASACO Life, Mutual Benefit Life, Anchor Insurance, Great Nigeria Insurance, Guinea Insurance, Linkage Assurance, Oasis Insurance, Staco Insurance, Standard Alliance Insurance, Universal Insurance Plc and Unic Insurance.

    Out of this group, IEI, Cornerstone, Niger, Oasis, Staco, Standard Alliance and Universal Insurance are quoted on the floor of the Nigerian Stock Exchange (NSE) and risk suspension by the exchange.

    Section 26 of the Insurance Act, 2003 states that failure to file annual returns constitutes a ground for cancellation of operating license and an insurer shall be deemed to have failed to file its annual returns if the provisions of Section 26 of the Act are not met 12 months after the end of the financial year.

    The nine companies that got NAICOM’s approval are Mansad Insurance Plc, ADIC Insurance Ltd, WAPIC Insurance, Consolidated Hallmark Insurance, Oasis Insurance Plc, FBN Life Assurance Ltd, Continental Reinsurance Company Plc, AIICO Insurance Plc and Leadway Assurance Company Ltd.

    Others like Custodian & Allied Ins. Plc, Unitrust Insurance Company Limited, Crusader General Ins. Ltd, UBA Metropolitan Life Ins. Company, NEM Insurance Plc, Law Union & Rock Insurance Company, Zenith General Insurance Ltd, Zenith Life Insurance Ltd, Standard Allied Life Assurance, Crystal Life Insurance, Sovereign Trust Insurance Plc, FIN Insurance Ltd, Unity Kapital Assurance Plc, Equity Assurance Plc, Lasaco Assuarnce Plc, Prestige Assurance Plc, PHB Insurance Plc, Regency Alliance Company have submitted their annual accounts but are being queried at different levels by the regulator.

    At a parley with all the CEOs of insurers in Ibadan, the Commissioner for Insurance, Mr. Fola Daniel, expressed concerns over the delays in the submission of 2012 annual accounts and common errors noticed in the reports already submitted by some insurance companies.

    At the meeting which was held behind closed doors, Daniel stressed the need to speed up the process to avoid further delays in the approval of accounts by the commission and warned of grave consequences of further delays of submission and approval of the accounts to the affected companies.

    The Nation learnt that the commissioner who did not hide his disappointment over the development said the commission will not hesitate to wield the big stick when necessary.

    Meanwhile before the meeting with the CEOs, NAICOM also held a meeting with Chief Financial Officers (CFOs) of the affected insurance companies where they accepted there were challenges but promised to do the needful.

    The meeting was addressed by NAICOM Deputy Commissioner, Finance and Admin, George Onekhena and Director, Supervision, Nicholas Opara. The two officials also took time to address some areas of challenge to the companies.

    But in spite of these meetings, the companies are still struggling and are yet to submit.

    It was learnt that while some are having challenges in getting their auditors and actuaries perfect their accounts, others may have got their hands soiled with several irregularities and misstatement in the activities of their companies and are afraid of being exposed and sanctioned.

    One of the embattled CEOs who spoke on condition of anonymity said his company has not submitted because of the issues of IFRS.

    He said there are also challenges with external auditors as most of them have just changed their previous auditor as required by the law.

    “But as I am speaking with you now, our CFO is in Abuja ready to submit the account to NAICOM,“ he said.

    The managing director of one of the old insurance companies in the country explained that some of the big companies are having issues because of their size especially those who have branches in other African countries.

    There is also the challenge of information technology, he said.

    “For us, our challenge has to do with size. It is the first time we have to do a full blown financial result on IFRS.

    “We are also faced with the problem of lack of good actuaries in the country. It is a bigger problem for us because as a composite insurance company that operates general and life businesses, we are required by the IFRS standard to produce two actuarial valuations for the two businesses. Before now, we were only required to do valuation for general business.

    “The number of actuarial firms in the country is too small and it is a big challenge. Although the actuarial scientists in Nigeria are coming up with initiatives to develop that part of our business need, we are going to set up our own actuary in the company.“

    An industry observer said it is worrisome that these companies have not submitted their account and had not got approval from the regulator.

    He however urged NAICOM not to relent in enforcement of laws guiding the industry as this will bring out the true state of the industry and investors will be guided appropriately.