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Mutual Benefit Assurance Plc has maintained an efficient underwriting as the combined ratio of 8.94 percent is lower than the 100 percent benchmark, which means the insurer is earning more revenues from its collected premiums relative to the claims it pays out.
It posted real underwriting returns of N1.77 billion as at June 2023, according to MoneyCentral calculations.
Total expense ratio fell to 48.35 percent in the period under review from 49.93 percent as at June 2022.
The company honors its obligations as it paid N6.50 billion claims to policy holders, which represents a 36.26 percent increase from 2022’s N4.77 billion.
Claims ratio increased to 40.59 percent in the period under review from 34.75 percent the previous year.
The continuous rise in inflation has given birth to claims inflation as the replacement cost of assets have skyrocketed, which does not portend well for an industry reeling from deteriorating combined ratio.
Of course, the abrupt devaluation of the Naira to pave the way for a unified foreign exchange regime has compounded the woes of sector players.
Nigeria’s inflation rate rose to 22.79% in the month of June 2023, representing a 0.38 percent point increase from 22.41% recorded in the previous month.
The company gross premium written (GPW) rose by 20.17 percent to N22.16 billion in June 2023 from N18.44 billion as at June 2022.
Gross premium income for Mutual Benefit was up 15.63 percent to N18 billion from N15.63 billion as at June 2022. ‘
Net premium income (NPI) followed the same growth trajectory as it increased by 16.67 percent to N16.03 billion in June 2023 from N13.74 billion the previous year.
As a result of higher claims, the company’s net income dipped by 2.54 percent to N3.44 billion in June 2023 from N3.53 billion the previous year.