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Mutual Benefit Assurance Underwriting Profit Surges Amid Challenging Operating Environment

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Mutual Benefit Assurance Plc has recorded the best underwriting results in more than a decade, as the insurer continues to overcome a challenging operating environment.

The combined ratio for the year ended 2022 stood at 92.28 percent, which is lower than the 100 percent benchmark that signifies improved operating efficiency and profitability, but lower than 81.23 percent, according to data gathered by MoneyCentral.

A cursory analysis of the financial statement shows the insurers’ underwriting profit surged by 8.86 percent to N8.28 billion in December 2022 from N4.44 billion as at December 2021.

Of course the improvement in underwriting results was bolstered by revenue growth as the insurer’s array of products is making an inroad into the Nigerian market and are being accepted by customers.

Analysts also noted the stellar performance to cost control measures, improved service delivery as well as increased market penetration via digital channels.

The company said one of its major achievements was the restructuring of our loan from Daewoo Securities Ltd.

Mutual Benefit posted net income of N4.06 billion as at December 2022, on from a loss of N5.24 billion the previous year as bottom line (profit after tax) was buoyed by a strong growth in investment income. Returning to the path of profitability means it can pay a dividend to its shareholders.

Gross premium written (GPW) rose by 48.10 percent to N33.78 billion in December 2022 from N30 billion the previous year.

A breakdown of the GPW shows premium income from the Non-Life segment was up 17.31 percent to N14.09 billion while the Non-Life (Group Life and individual Life) rose 13.94 percent to N19.63 billion.

Gross premium income (GPI) was up 28.67 percent to N33.61 billion in December 2022 from N26.12 billion the previous year.

Net premium income followed the same growth trajectory as it increased by 31.84 percent to N29.60 billion as at December 2022 from N22.45 billion the previous year.

The composite insurer paid N12.96 billion in claims, which is 17.50 percent higher than 2021’s N10.80 billion.

The claims ratio 42.89 percent in the period under review from 36.50 percent the previous year.

It is worth noting that the a rise in interest rate due to the aggressive stance of the central bank that underpinned bond yield is a boon for the insurer as investment income surged by 106.89 percent to N3 billion as at December 2022.

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