In line with its determined to meet the new minimum paid-up share capital set for insurance companies in Nigeria, Mutual Benefits Assurance Plc has increased its authorised share capital from initial N10 billion to N15 billion, by the creation of ten billion ordinary shares of 50 kobo.
Besides, the company directors also got the approval of its shareholders to raise additional capital to enable it meet the new capital requirement.
Mutual Benefits with a general business and life subsidiary is expected to increase the capital base of the tow companies to a total of N18 billion on or before 30th June 2020 as directed by the National Insurance Commission (NAICOM).
Akin Ogunbiyi, chairman of the company who disclosed the plan at its 23rd Annual General Meeting held in Lagos said the board is determined to ensure that your company and its life subsidiary meet the new capital requirement ahead of the deadline.
While urging for the support of the shareholders, he thanked them for the success recorded in its last right issue held in 2018 and concluded in January 2019. He noted that the exercise was successful, as it recorded a 79.3 percent success, amounting to N1.586 billion from the expected N2 billion.
On the 2018 financial performance, the underwriter recorded a gross premium written of N15.84 billion, an increase of 13 percent from N14.04 billion in 2017.
The Company also during the period under review increased its profit before tax by 3 percent, moving from N1.335 billion to N1,380 billion, while the profit after tax was N1.149 billion as against N1.022 billion, an increase of 12 percent.
Total assets of the company also grew by 3 percent, moving from N57.69 billion to N59.26 billion, while shareholders fund appreciated by 10 percent to N8.88 billion from N8.10 billion.
Ogunbiyi noted that the company is in the third year of its five years strategic plan, and hopes that it will consolidate on the growth achieved in the first and second year of execution.
He said, going into the future the company will continue to adopt effective budgetary controls, improved IT service delivery; increased market penetration, which is critical to actualising the five year plan.
