Mutual Benefits Assurance returns to profit on investment income
Mutual Benefits Assurance Plc has navigated the storm of headwinds as the insurer returned to profit on the back of increased investment income.
This stellar performance means the company is steadfast in its primary objective of maximizing the stakeholders’ wealth.
For the year ended December 2017, Mutual Benefit’s posted a profit after tax of N1.02 billion from a loss of N1.34 billion recorded in 2016.
The impressive performance was driven by a 174.09 percent surge income from treasury bills of N910.82 million in the period under review.
Income from treasury bills form part of investment income of insurers.
Some financial institutions made money from short term government securities when yields were between 18 percent and 22 percent from late 2016 to September 2017 as government intensified issuance of treasury bills to fund a budget deficit and curb inflation.
However, yields on treasury bills have fallen to an all time low of 12 percent as government launch an aggressive Eurobond issuances in order to reduce domestic debt and reduce borrowing costs.
Mutual Benefit’s gross premium written increased by 15.66 percent to N14.03 billion in the period under review from N12.13 billion as at December 2018.
A breakdown of gross premium written shows Mutual Plc Nigeria, a subsidiary of Mutual Benefit Assurance, recorded a 10.79 percent in increase in gross premium written.
Mutual Limited Nigeria, another subsidiary of the Group, saw gross premium written increase by 14.02
This stellar performance means the company is steadfast in its primary objective of maximizing the stakeholders’ wealth.
For the year ended December 2017, Mutual Benefit’s posted a profit after tax of N1.02 billion from a loss of N1.34 billion recorded in 2016.
The impressive performance was driven by a 174.09 percent surge income from treasury bills of N910.82 million in the period under review.
Income from treasury bills form part of investment income of insurers.
Some financial institutions made money from short term government securities when yields were between 18 percent and 22 percent from late 2016 to September 2017 as government intensified issuance of treasury bills to fund a budget deficit and curb inflation.
However, yields on treasury bills have fallen to an all time low of 12 percent as government launch an aggressive Eurobond issuances in order to reduce domestic debt and reduce borrowing costs.
Mutual Benefit’s gross premium written increased by 15.66 percent to N14.03 billion in the period under review from N12.13 billion as at December 2018.
A breakdown of gross premium written shows Mutual Plc Nigeria, a subsidiary of Mutual Benefit Assurance, recorded a 10.79 percent in increase in gross premium written.
Mutual Limited Nigeria, another subsidiary of the Group, saw gross premium written increase by 14.02
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