The performance score-card for Mutual Benefit Assurance hit the Nigerian Stock Market (NSE) on Monday, highlight of which was the return to profit before and after tax, despite the less than fantastic rise in gross premium written and premium income.
While gross premium written rose 16% from N12.143bn to N14.037bn; gross premium income climbed 11% up to N13.352bn, as against the previous N11.982bn reported in the corresponding full year ended December 31, 2016.
Premiums ceded to reinsurers rose slightly to N1.885bn, as against the N1.711bn of 2017; following which net premium income increased by 12% to N11.467bn, up from N10.271bn. Fee and commission income for the period fell from N430.522m in 2016 to N309.646m; just as net underwriting income stood at N11.776bn from N10.701bn, a 10% growth.
Net benefits and claims however climbed by N1.806bn or 53.94% to N5.154bn, as against the previous N3.348bn; change in life fund remained negative, improving however from N161.532m to N4.27m; just as change in annuity reserve (also negative) stood at N22.252m from N354.039m.
Underwriting expenses was flat at N2.944bn, as against N2.972bn; leaving underwriting expenses at N8.072bn from N6.512bn; following which underwriting profit dropped by 12% to N3.704bn from N4.188bn.
Profit on investment contracts improved to N891.899m from N555.466m; investment income jumped by N617.497m or 63.02% to N1.597bn from N979.765m; other income rose to N477.649m from N257.485m.
Impairment charges for the period soared from N10.574m to N169.137m; employee benefit expenses was flat also at N1.939bn from N1.914bn; just as management expenses at N3.451bn as against N3.364bn. Net foreign exchange gain stood at N22.285m, as against the loss of N1.89bn in 2016; as operating profit came to N1.173bn from the previous N1.195bn loss.
Finance costs rose slightly to N39.432m from N27.681m; finance income improved from N154.985m from N200.57m; bringing profit before tax to N1.335bn, which was 225% better than prior year’s N1.068bn loss. Net profit for the year stood at N1.022bn, a 176% improvement over the N1.346bn loss in the previous full year, translating to Earnings Per Share of 13 kobo, compared to the prior loss of 17 kobo.