As companies in the insurance industry work to meet the new minimum capital (MCR) requirements set for players in the sector, Mutual Benefits Assurance Plc says it is well above the new threshold.
Olufemi Asenuga, managing director/CEO of Mutual Benefits Assurance Plc, said the company moved aggressively as far back as 2020 to shore up its capital ahead of the current mandates.
Addressing journalists at the company’s 30th Annual Thanksgiving Service in Lagos, Asenuga said, “We are in an ongoing phase of industry recapitalization, and by 2020, we were one of the most capitalized companies in the market, surpassing the new minimum requirements for both general and life business.”
According to him, the company is comfortable with its current position but could consider opportunities to grow bigger if the need arises. “Acquisition is always an option, but it is not our current priority, as it comes with challenges of assimilation.”
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Reflecting on the company’s 30-year journey, Asenuga said, “It has not been easy for us as a company to stand this tall and strong after 30 years, especially in an economy with volatile government policies and global economic cycles.”
He noted that some challenges the company faced were internal, while many were external, even beyond Nigeria, including the global pandemic in 2020 that brought the business world to its knees.
“Today, we stand tall and strong, and we attribute our success not only to our expertise but also to the love of God over the company and its people,” he added.
On his personal journey, he said, “I have been with the company for 30 years, constantly moving and pioneering roles, which kept me engaged and growing professionally. I started in general business but pioneered the life business arm, handling registration, licensing, and the transition to a composite company.”
Regarding the company’s position in micro-insurance, which it led for many years, Asenuga said, “Micro-insurance remains part of our main business, and we are currently revamping it using technology to strengthen distribution and retail presence.”
Expressing confidence in NIIRA and its potential to reshape the industry, he noted, “Challenges like shrinking markets and price-driven competition are ongoing, but NIIRA 2025 is expected to revamp the market by linking capital requirements to portfolio profitability. Proper implementation of NIIRA will ensure that mispricing is corrected, risky portfolios are addressed, management is held accountable, and better practices are reinforced.”
