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Chuks Udo Okonta
Mutual Benefits Assurance Plc in year 2022, had an outstanding financial performance, recording a 14.27 per cent growth in Gross Premium Written (GPW) from N29.30 billion in 2021 to N33.48 billion in 2022.
The Chairman of the foremost underwriting firm, Dr. Akin Ogunbiyi, who stated this today at the firm’s Annual General Meeting (AGM) in Lagos, said the growth was driven by a 17.29 premium growth in Gross Premium Written in the Life insurance business, which moved from N12.01 billion in 2021 to N14.09 billion in 2022 and a 12.17 per cent increase
in non life business from N17.28 billion in 2021 to N19.39 billion in 2022.
He told shareholders at the meeting that despite the challenges faced within the operating environment in Nigeria during the year 2022, the Group’s balance sheet remains robust, with a total asset of N92.95 billion representing a 10.95 per cent increase from N83.78 billion in the year 2021, an increase in insurance contract liabilities by 11.21 per cent from N23.46 billion in 2021 to N26.09 billion in 2022.
He noted that the investment contract liabilities grew by 11.02 per cent from N30.18 billion in 2021 to N33.51 billion in 2022, while shareholders’ funds increased by 16.12 per cent from N18.41 billion in 2021 to N21.38 billion in 2022.
Ogunbiyi submitted that the group also recorded a 28.08 per cent increase in net premium income from N22.46 billion in 2021 to N28.76 billion in 2022.
He said adverse claims experience and underwriting expenses resulted in increases of 9.31 per cent and 25.36 per cent respectively, adding that net benefits and claims increased from N10.81 billion in 2021 to N11.81 billion in 2022, while underwriting expenses increased from N7.06 billion in 2021 to N8.86 billion in 2022.
He said despite these increases in claims and underwriting expenses, the group recorded a tremendous increase of 88.24 per cent in the underwriting profit of N8.37 billion in 2022 as against N4.45 billion in 2021.
“Implementation of various investment strategies resulted in an increase in the Groups investment income by 60.60 per cent from N1.46 billion in 2021 to N2.34 billion in 2022.
“These investment strategies resulted in the Group’s operating profit of N3.49 billion in 2022 as against the loss of (N5.54b) in 2021 caused by the negative impact of the economic variables on the investment outlook of fair valued financial instruments,” he posited.
He said the year 2023 holds great hope for the insurance industry in Nigeria with lots of opportunities, adding that life
business will continue to lead the growth as the industry unleashes the locked potential in our population for premium generation.
The increase in the minimum rate for motor insurance business, he said is also expected to boost growth n genera business. The industry is susceptible to the interest rate regime and with the increase in the MPR from 16.5 per cent to 17.5 per cent, the investment income is expected to witness growth with more investments in money market instruments.
The Chairman maintained that the Group would go live on the new core insurance software in 2023, stressing that this milestone will mark the conclusion of the implementation of the firm’s ICT Transformation program (Project Efficiency).
The project, he noted is aimed at improving the business processes and increasing productivity. “Also, we are enthusiastic about the progress we have made in the implementation of IFRS 17 and we remain committed to meeting up with
various deadlines given by NAICOM,” he submitted.
Ogunbiyi noted that following NAICOM’s approval of the firm’s application to
underwrite Agricultural products, the year looks promising for the company with increased market share and improved profitability.
He on behalf of the Board of Directors and Management, extended gratitude to the company’s shareholders, employees,
and partners for their unwavering support throughout the year, adding that together, the would navigate the evolving
landscape, seize opportunities and achieve sustainable growth.
The Managing Director/Chief Executive Officer, Olufemi Asenuga, noted that the company expects all its business lines to deliver growth and profitability in the 2023 financial year, adding that they remain confident in the medium and long-term prospects for a stronger and better-positioned Mutual Benefits Assurance Plc.
“To our Shareholders, you have kept fate with us, you have persevered with hopes of returns in the form of dividends. I am not impervious to your yearnings,” he posited.
He reassured shareholders that he and his colleagues would continue to work towards meeting and surpassing their expectations in the coming years.
Asenuga also expressed sincere gratitude to the Mutual Benefits employees who he said have maintained an unfailing commitment to serving their stakeholders.
He appreciated the company’s customers, brokers, agents, business partners and
other stakeholders, adding that the firm does not take their support for granted and promised a more mutually beneficial relationship in 2023 and beyond.
He appreciated God for always being there for Mutual Benefits Assurance Plc.