Mutual Benefit Assurance Plc is paying out more money in claims than it is receiving in premiums as the insurer’s profit dipped, and perhaps more worrisome is the slow growth in revenue.
The rising claims that undermined the company’s profit is driven by inflationary pressures, economic uncertainties, and rising energy costs.
For the first six months through June 2026, Mutual Benefit Assurance profit after tax (PAT) reduced by 15.87 percent to N9.75 billion from N11.59 billion as at June 2025.
The company’s mounting obligations are taking its toll on profit.
For instance, claims expenses which spiked by 38.55 percent to N40.86 billion in the period under review is 1 time (1x) total revenue of N42.25 billion, according to MoneyCentral calculations.
Claims expenses have been growing faster than revenue for some insurers, which validates the difficult environment that they operate in, though sector players have remained profitable.
Mutual Benefit paid N40.86 billion as at June 2026, which is 39.27 percent higher than 2025’s N30.43 billion.
Analysts say insurers will have to diversify their revenue stream in the face of macroeconomic hardship as evidenced in a low insurance density.
Insurance revenue was down 2.57 percent to N42.25 billion in the period under review from N41.19 billion as at June 2025.
Mutual Benefits Assurance Plc has successfully met and exceeded the regulatory recapitalisation requirements mandated by the National Insurance Commission (NAICOM).
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