Mutual Benefits Assurance Plc, said it is raising N2 billion through right issues to shore-up its capital.
This the company is doing by offering ₦0.50 rights issue of 4 billion ordinary shares which was scheduled to be available between August 6, 2018 and September 14, 2018 on the basis of one new share for every two shares held as at October 31, 2017.
The offer which was endorsed by shareholders, at the firm’s Annual General Meeting (AGM) held recently, would help increase the Company’s shareholders’ funds, strengthen its capital base, deepen capacity to underwrite risks, upgrade information technology and enhance working capital.
The Chairman of the company, Dr. Akin Ogunbiyi, at the AGM reassured the shareholders of the company’s commitment to sustainable growth, in line with its 5-year strategic plan.
Dr. Ogunbiyi said, “Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments.” He added that the biggest improvement was the ₦1.02 billion profit that was declared as against the ₦1.35 billion loss recorded in 2016.
He noted that the company has demonstrated its commitment to shareholders through the payment of ₦160 million dividend for the 2017 financial year, a development that arouse excitement amongst the shareholders
The Chairman reiterated that the payment of the dividend would mark the beginning of consistent dividend payments to its shareholders.
The 2017 financial year revealed a 15.6 per cent growth in gross premium to ₦14.04 billion from ₦12.14 billion in 2016, which puts the Company among the league of top Nigerian insurance companies.
Net benefits and claims grew by 53.9 per cent from 2016’s figures. The significant growth in gross premium and better management of resources made 2017 a turnaround year for the company.