Mutual Benefits Records N39bn Gross Premium Growth

Mutual Benefits Assurance Plc reported a significant rise in its gross premium written, which increased by 77% to N39.3 billion in the first half of 2024, compared to N22.16 billion recorded during the same period in 2023.

The company’s unaudited financial statements for the period ending June 30, 2024, filed with the Nigeria Exchange Limited on Thursday, showed that insurance revenue grew by 40% to N28.49 billion, up from N20.42 billion in the corresponding period of the previous year.

Net investment income also experienced a remarkable boost of 215%, climbing to N6.16 billion compared to N1.95 billion recorded during the first half of 2023.

However, insurance service expenses rose by 54% to N25.75 billion, reflecting an increase in claims and operational costs. This marks a significant jump from the N16.68 billion reported in the same period last year.

Despite the increase in expenses, Mutual Benefits achieved a profit before tax of N3.17 billion, reflecting a 42% improvement from the N2.23 billion recorded in the corresponding period in 2023. Profit after tax also grew by 32% to reach N2.45 billion, compared to N1.85 billion in the prior year.

Additionally, the company’s total comprehensive income for the period surged by 114% to N10.33 billion, up from N4.82 billion in the same period of 2023, driven by gains in foreign exchange transactions and investment income.

A closer look at the company’s financial position showed that total assets expanded by 19% to N131.8 billion as of June 30, 2024, compared to N110.45 billion recorded at the end of December 2023. Shareholders’ funds also saw an increase of 31%, rising from N27.57 billion to N36.05 billion within six months.

Liabilities rose by 14%, reaching N91.48 billion from N80.45 billion as of December 2023. Similarly, insurance contract liabilities increased by 28% to N41.82 billion, up from N32.76 billion.

In addition, the company recorded an improvement in its earnings per share, which rose to 12 kobo during the first half of 2024, compared to nine kobo in the same period of the previous year.