Mutual Benefits returns to profitability, posts N3.1 billion annual profit
Mutual Benefits Assurance returned to profitability in the 2022 fiscal year after reporting a loss twelve months earlier, its audited financial report showed on Wednesday.
The much-improved result owed its debt to higher gross premiums written and a sharp reduction in fair value losses on quoted bonds, which dropped from N5.6 billion to N94.8 million.
A surge in fair value losses on quoted bonds was the single biggest factor that plunged the underwriter into loss in 2021.
Gross premium written jumped 14.3 per cent to N33.5 billion, with improvement recorded in premiums from both life and non-life insurance divisions. Apart from underwriting services, Mutual Benefits also runs a microfinance arm, whose offerings encompass micro credits, consumer banking and retail banking.
Fees and commission income for the review period fell to N733.7 million from N760.3 million after the commission earned from reinsurance contracted by 3.5 per cent.
Net underwriting expenses rose by 12.5 per cent to N21.1 billion, driven by increases in both net benefits and claims as well as underwriting costs.
Due to a steep jump in acquisition cost on investment policies and guaranteed interest, the insurer incurred N797.5 million as loss on investment contracts in contrast to a gain of N397.7 million a year earlier.
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The company reported a net foreign exchange gain of N380.6 million compared to a net foreign exchange loss of N594.9 million in 2021, while investment income improved by 60.6 per cent to N2.3 billion.
Also boosting profit, finance income accelerated by 435 per cent to N512.1 million, with interest on micro loans contributing N510.4 million of that sum.
Profit before income tax stood at N3.8 billion relative to a loss before tax of N5.6 billion in 2021, while after-tax profit came to N3.1 billion compared to a net loss of N5.2 billion a year ago.
Total assets for the period grew by 10.9 per cent to N93 billion.
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Mutual Benefits Assurance returned to profitability in the 2022 fiscal year after reporting a loss twelve months earlier, its audited financial report showed on Wednesday.
The much-improved result owed its debt to higher gross premiums written and a sharp reduction in fair value losses on quoted bonds, which dropped from N5.6 billion to N94.8 million.
A surge in fair value losses on quoted bonds was the single biggest factor that plunged the underwriter into loss in 2021.
Gross premium written jumped 14.3 per cent to N33.5 billion, with improvement recorded in premiums from both life and non-life insurance divisions. Apart from underwriting services, Mutual Benefits also runs a microfinance arm, whose offerings encompass micro credits, consumer banking and retail banking.
Fees and commission income for the review period fell to N733.7 million from N760.3 million after the commission earned from reinsurance contracted by 3.5 per cent.
Net underwriting expenses rose by 12.5 per cent to N21.1 billion, driven by increases in both net benefits and claims as well as underwriting costs.
Due to a steep jump in acquisition cost on investment policies and guaranteed interest, the insurer incurred N797.5 million as loss on investment contracts in contrast to a gain of N397.7 million a year earlier.
ALSO READ: Access Holdings posts record N1.4 trillion annual revenue but profit drops
The company reported a net foreign exchange gain of N380.6 million compared to a net foreign exchange loss of N594.9 million in 2021, while investment income improved by 60.6 per cent to N2.3 billion.
Also boosting profit, finance income accelerated by 435 per cent to N512.1 million, with interest on micro loans contributing N510.4 million of that sum.
Profit before income tax stood at N3.8 billion relative to a loss before tax of N5.6 billion in 2021, while after-tax profit came to N3.1 billion compared to a net loss of N5.2 billion a year ago.
Total assets for the period grew by 10.9 per cent to N93 billion.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
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TEXT AD: Call Willie – +2348098788999
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