Underwriting firm, Mutual Benefits Assurance Plc, has secured the approval of regulatory authorities to raise N2 billion through right issue in pursuance of its five years strategic plan.
The underwriting firm will be offering to its existing shareholders 4,000,000,000 ordinary shares of 50 kobo each at 50kobo per share on the basis of one new ordinary shares for every one held.
Shareholders of the company had approved the Board of Directors’ proposal to raise additional equity at an Annual General Meeting (AGM) held in Ibadan on June 27, 2018.
Acceptance List for the Rights Issue opens on Monday, 6, August 2018 and will close Friday 14, September 2018. The Rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the Issue.
The insurance company, a general business and life insurer, has an authorised share capital of N10 billion with a paid up capital of N4 billion.
The company provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others.
Speaking at the completion board meeting held on Friday, the chairman of the company, Akin Ogunbiyi said that the proceeds of the offer will be used to fund the Company’s recapitalization and growth plan. It will also provide additional working capital and finance the expansion of IT facilities to support the Company’s enlarged operations.
On plans for 2018, he said “We will consolidate on the modest achievements recorded in 2017 by commencing our IT transformation blueprint in 2018.”
This he explained will help to eliminate slack time in company’s processing and ultimately enable them to focus more on customer delights and satisfaction.
He further said “Our strategic aspiration is to become the number one insurance company in Nigeria in terms of growth and profitability.”
“Despite the tough business environment we have been able to bounce back to profitability and delight our shareholders. Dividend of N0.02kobo per share will be paid to our esteemed shareholders who have stood by us over the years”
He assured that going forward dividend payment will be sustained, while urging shareholders to take up the right issue.
The Company’s financial performance for the year ended 31, December 2017, shows that top line growth was combined with prudent management of expenses, which resulted in a 224.9 percent growth in profit before tax to N1.34 billion in 2017 from a loss position of N1.1billion in 2016.
Group’s total assets grew by 12.1 percent from N51.5billion in 2016 to N57.7billion in 2017. Gross premium written also appreciated by 16 percent from N12.14 billion in 2016 to N14.03 billion in the review year, while underwriting income also grew by 10percent to N11.78 billion in 2017 versus the 2016 figure of N10.70 billion.
Net claims paid by the Group in 2017 stood at N5.15 billion from N3.35 billion in 2016, resulting in a 54 percent increase from the previous year.
