Mutual Benefits Assurance pays N19.3bn claims

Published 5 July 2021

Mutual Benefits Assurance Plc said it paid N19.3bn claims to its clients in the 2020 financial period.

It said this in a statement on its 2020 audited financial results released on the floor of the Nigerian Exchange Group.

“The combined claims paid by Mutual Benefits Assurance Plc and its subsidiary, Mutual Benefits Life Assurance, was N19.37bn representing an eight per cent decrease on the claims paid last year,” it stated.

Mutual Benefits also said its gross premium written rose by seven per cent to N19.98bn in the period under review from N18.69bn recorded in 2019.

The results showed that profit after tax rose by 41 per cent from N3.61bn in 2019 to N5.10bn in 2020, while profits before tax stood at N5.04bn, representing a 34 per cent increase from N3.75bn in 2019.

The company recorded a 74 per cent growth in shareholders’ fund which rose to N23.35bn from the N13.43bn of 2019.

Total assets also grew by 22 per cent from N67.78bn in the previous year to N82.87bn in the year under review.

Insurance contract liabilities for the year under review rose by 25 per cent to N17.57bn from N14.1bn in 2019.

A breakdown of the claims profile for 2020 revealed that the life business paid a total of N3.54bn in group life claims, maturity claims accounted for N7.76bn, while credit life claims was N140m.

Other claims paid included individual death claims, annuity claims, surrender claims and partial withdrawal claims at N213m, N44m, N3.65bn and N870m respectively.

The gross claims paid for non-life business was N3.14bn. Motor claims were N919m, fire claims N476m and general accident claims were N663m.

Special risks (Aviation/oil & gas) and marine claims were N737m and N349m respectively.

Commenting on the company’s performance, the Managing Director, Mutual Benefits Assurance Plc, Femi Asenuga, said, “The financial result is a testament of the resilience of the Mutual Benefits brand; strong, well-capitalised and dynamic.

“The year 2020 was difficult globally with Nigeria not being an exception; organisations also had to contend with the devaluation of the naira, COVID-19 and other issues.”

The Managing Director/Chief Executive Officer, Mutual Benefits Life Assurance Limited, Mr Ademola Ifagbayi, said, “Our business continuity plan enabled us to be there for our customers at their hours of need.

“This is attested to by the volume and quantum of claims we settled in 2020 and the speed with which we did it.

He added that the quantum of claims paid was a proof of the company’s commitment to its customers.