Mutual Benefits Assurance Plc recorded growth in gross premium written, net underwriting income, profit after tax and total assets, for the period ended 30th June 2020 according to its consolidated and separate statement of profit or loss released on Tuesday. The share price of the company rose by 10.00% at the close of trading on Tuesday.
The gross premium written rose to N10.167 billion in H1 2020 from N9.864 billion posted in H1 2019. Whereas the profit after tax increased to N1.567 billion from N1.428 billion reported in the first half of 2019.
In the second quarter of 2020 (April to June), the gross premium written rose to N4.591 from N3.957 reported in Q2 2019. Profit after tax for the quarter increased to N634.977 million from N538.692 million recorded in 2019.
A close look at the statement of profit or loss showed that, the gross premium written comprises of N5.258 billion from Non-life insurance and N4.909 billion from life (group and individual insurance).
Out of N1.547 billion reinsurance expense, Non-life component amounted to N1.106 billion whereas life stood at N534.418 million. Prepaid reinsurance expense of N92.749 billion was reported.
The company’s net underwriting expenses rose to N5.533 billion from N4.57 billion in 2019, due to increases in net benefits claims ( to N2.863 billion in 2020 from NN2.597 in 2019), underwriting expenses (to N2.443 billion from N1.782 billion in 2019) and increase in life fund to N250,000 from N200,000 in 2019.
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Mbenefit total assets increased to N 72.547 billion as at 30 June 2020 from N67.778 billion reported as at 31 December 2019. Categories of assets that increased include cash and cash equivalents, Fair value through profit or loss, Other receivables and prepayments among others.
Mbenefit reported positive net cash flows from its operating activities – N982.866 billion and investing activities – N1.966 billion. No transactions were recorded under the financing activity within the period in review. The company’s cash and cash and equivalent stood at N9.807 billion as at 30 June 2020. Largely due to N6.821 billion Cash and cash equivalents as at 1 January
Mutual Benefits Assurance Plc is into the business of general and life insurance. The share price rose by 10.00% to close at N0.22 on Tuesday at the floor of NSE. The 52 week high and low prices are N0.26 and N0.20 respectively.
YTD the share price is up by 10.00% while in two years and five years it is down by 38.89% and 56.00% respectively.
Written by;
Ifunanya Ikueze
