Mutual Benefits Assurance announces N3.5bn profit in H1 2022

Mutual Benefits Assurance Plc has posted a profit of N3.5 billion profit after tax for the half year of 2022, a significant jump from the loss record of N1.98 billion  reported in the same period of last year.

According to the financial report by the company, the increase in profit follows a significant rise in the premium income reported by the insurer. This is as inflation continues to witness a tremendous rise during the period, hovering at a double-digit figure.

The report shows that the gross premium written and the gross premium income, from the life and non-life business  stood at N18 billion and N15.6 billion for the first six months of the year. Compared to the same period last year, the amount signifies 20 per cent and 16 per cent growth.

The insurer had earlier stated that it increased its capital base to reach N20 billion with Life and general business taking a N8.8 billion and N12 billion respectively. Hence, increasing its appetite to take on more risks.

Similarly, recovery from economic activities continues in 2022 from the slowdown seen in 2020 due to the lockdown which caused a lot of people to prioritize their spending on basic things as well as to the EndSARS protest that saw lots of properties destroyed.

With premium of N1.9 billion ceded to the insurer, the net premium income stood at N13.7 billion while the net underwriting income was N14.2 billion.

The company also reported an increase in investment income to N1.2 billion in the first half of 2022 from N559 million in the first half of 2021 as well as a growth in management expenses to N2 billion from the N1.7 billion record.

Total assets of the company declined slightly in six months to close at N89.6 billion in June 2022 from N83.8 billion in December 2021.

Mutual benefit last traded at N0.25 as of Friday 19th August 2022 while its market capitalization stood at N5 billion.