Mutual Benefits Assurance Plc has announced a 12 per cent increase in Profit After Tax (PAT) to N1.15 billion in 2018 financial year ended December 31, 2018, from N1.02 billion reported in the 2017 financial year.
The company in its results to Nigerian Stock Exchange (NSE) on Friday said Profit before tax also increased by three per cent to N1.38 billion in 2018 from N1.34 billion in 2017.
Following improved profit, the Group Earnings Per Share (EPS) closed last year at N0.14 per cent from N0.13 reported in the previous financial year.
Our correspondent gathered that, the board and directors of Mutual Benefits Assurance yet to recommend dividend this year but had paid shareholders N160 million dividend in 2017 financial year.
The company in the same year paid N5.4 million to Securities and Exchange Commission (SEC) as a sanction.
For the year under review, the group results of Mutual Benefits Assurance posted a 13 per cent increase in gross premium is written to N15.8 billion in 2018 from N14.04 billion in 2017 while Gross premium income hits N15.6, 17 per cent increase over N13.35billion in 2017.
Also from profit & loss figures, the group reported net premium income of N13.48billion, 18 per cent increase over N11.47billion in 2017.
Statement of financial position showed a three per cent increase in total assets to N59.3billion in 2018 from N57.69billion, driven by a 27 per cent increase in the insurance contract liabilities to N13.05 billion in 2018 from N10.3 billion in 2017.
The Group’s shareholders funds gained 10 per cent to N8.9 billion from N8.1 billion reported last year.
Early in the year, the company concluded its rights Issue of 4 billion ordinary shares of N0.50kobo each at N0.50kobo per share.
The Company raised the sum of N1,586,366,754.00 through the right Issue and this increased the paid-up capital of the Company to N5,586,366,754.00.
However, independent auditors’ of the company in their key matters stated that “The Group’s investments in this class of financial assets include cash and short-term deposits, debt instruments and loans and receivables carried at amortised costs.
“This totalled N39 billion as at 31 December 2018 (2017: N37.4 billion) representing 61per cent (2017: 61per cent) of the Group’s total assets and the associated expected credit loss (ECL) is significant to the consolidated and separate financial statements.
“This was considered a Key Audit Matter as IFRS 9 is a new and complex accounting standard which requires significant judgement to determine the impairment loss reserve.”
On adequacy of valuation of Insurance contract Liabilities, the key matter raised was “The Group has insurance contract liabilities of N12.9 billion, out of which included outstanding claims of N8.2 billion (2017: N5.2 billion) as at 31 December 2018 representing 16 per cent (2017:10.4per cent) of the Group’s total liabilities.