Mutual Benefits Sees Impressive Premium Income Growth as Profit Surges

Despite the challenging environment, Mutual Benefits Assurance Plc has delivered impressive premium income growth as the insurer leverages technology to drive the demand for its products.

Analysts that MoneyCentral spoke attributed the uptick in earning to favorable pricing conditions. Insurers may have pack up prices to fend off rising claims costs caused by a weak currency and spiraling inflation as well as rising overhead costs.

The 2024 audited financial statement of Mutual Benefits Assurance shows revenue surged by 67.61 percent to N66.91 billion in December 2024 from N39.92 billion as at December 2023.

Drilling down the numbers shows all business segments contributed to top-line growth.

Regulations put in place by the National Insurance Commission (NAICOM), body that regulates insurance activity in Nigeria, is pivotal to improvement in earnings.

Revenue from Motor Segment spiked by 102.71 percent to N17.92 billion in December 2024. It is noteworthy that NAICOM had raised Third-Party insurance coverage for motorists from N5,000 to N15,000 yearly with effect from January 2023.

Group Life business’s sales were up 14.90 percent to N12.64 billion in the period under review from N11 billion the previous.

Revenue from the company’s Oil and Gas segment was up 94.93 percent to N5.77 billion in December 2024 from N2.96 billion as at December 2023.

Marine business saw revenue surged by 141.45 percent to N6.64 billion in the period under review from N2.75 billion as at December 2023.

Revenue from the Fire segment spiked by 92.48 percent to N7.42 billion in the period under review from N3.86 billion the previous year.

Revenue from Medical business was up 207.32 percent to N7.13 billion in December 2024 from N2.32 billion as at December 2023.

Mutual Benefits posted profit after tax (PAT) of N11.31 billion to end 2024 financial year, which is 92.34 higher than 2023’s N5.88 billion.

The company paid N53.18 billion claims to policyholders, which is 62.30 percent higher than 2023’s N31.13 billion.

Mutual Benefit and peer rivals operate in a tough and unpredictable macroeconomic environment which is beset by inflationary pressures and foreign currency volatility that bloats the replacement costs of assets.

Of course, the poor consumer bears the brunt as companies reprice upward insurance policies.

Get More of our proprietary news and analysis as MoneyCentral is now on WhatsApp Channels  Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!