Mutual Benefit Assurance Plc healthy solvency ratio assures policyholders that claims will be paid, even during severe economic downturns or natural disasters.
Mutual Benefit Assurance solvency ratio – the extra capital an insurer must hold over and above the claim amounts it is likely to incur – rose to 512 percent in the for the year ended December 2025, from 511 percent as at December 2024, according to data gathered by MoneyCentral.
The mandatory minimum requirement by the Nigeria National Insurance Commission (NAICO) to safeguard policyholders is 150 percent.
An insurer’s solvency margin ratio measures a company’s financial ability to meet its long-term and unexpected liabilities. It indicates whether an insurer has enough capital to pay future claims—even during catastrophic events—calculated by dividing the available capital by the mandated regulatory requirements.
The stable ratio indicates Mutual Benefit has remained profitable, surmounting claims inflation and unstable macroeconomic environment.
The insurer posted profit after (PAT) of N16.41 billion as at Full Year 2025, which is 45.09 percent higher than 2024’s N11.31 billion.
Insurance revenue was up 19.62 percent to N80.04 billion in 2025 from N66.91 billion as at December 2024.
Interest income spiked by 65.45 percent to N10.87 billion in the period under review from N6.57 billion the previous year.
To demonstrate its financial strength and operational reliability, Mutual Benefit Assurance paid N13.97 billion as claims to policyholders in 2025, which is 27.23 percent higher than 2024’s N10.98 billion.
The company says the payout, which covers both the company’s General and Life insurance portfolios, reinforces its position as a bedrock of stability within the Nigerian insurance sector, particularly as the industry navigates a period of heightened regulatory scrutiny and recapitalisation.
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