Mutual Benefits reports 16% growth in underwriting profits
Mutual Benefits Assurance Plc has said its underwriting profits for the audited financial account for the year ended December 31, 2016 grew by 16 per cent.
The Chairman, Akin Ogunbiyi, revealed this at the company’s 21st Annual General Meeting held in Ibadan, Oyo State, said underwriting profit rose from N3.6 million in 2015 to N4.2 million in 2016.
The Chairman said this is because its management employed better strategies of risk profiling of businesses within its portfolio thereby reducing its reinsurance cost.
He added that underwriting income grew by 27 per cent from N8.3 billion in 2015 financial year to N10.7 billion at the close of business in 2016, which was achieved through improved risk retention policy despite the challenging economy and consumer apathy towards insurance.
The audited account also shows that in 2016, the group paid a total of N3.3billion as claims to customers compared with N2.3 billion paid in 2015; a 43 per cent increase, due to the “firm commitment to honouring its obligations and delighting our customers, while improving customer service excellence.”
The company’s investment income also rose by 13 per cent to N966 million in the year under review against N854 million recorded in same period of 2015.
Recall that the insurer in conjunction with KPMG embarked on a strategic roadmap for the next five years aimed at repositioning the company for future opportunities and challenges focused on four key areas of its business. They include deepening market penetration and customer acquisition; customer service delivery excellence; transform people and culture; and drive operational effectiveness.
The organisation is investing in technology and developing innovative customer-centric products that meet the needs of current and potential customers, while increasing its market share.
These efforts have begun to pay off its recently released first quarter 2017 Financial Results; the Group made a Profit after Tax of N660 million, a 108 per cent increase made over the same period in 2016.