By Nike Popoola

Monday, 1 Nov 2010

 

Mutual Benefits Assurance Plc has said that its profit before tax rose from a loss of N1.5bn in 2008 to N402.6m in 2009.

The Chairman of the company, Chief Chamberlain Oyibo, said this during the company‘s Annual General Meeting in Lagos on Thursday.

He added that the company‘s gross premium also rose by 45 per cent, from N3.6bn in 2008 to N5.2bn in 2009.

Oyibo said, ”As things are today, your company is back to the path of profitability with the level of profit achieved.”

He noted that the company made adequate provision for the diminution in its capital market investments in the 2008 financial year.

According to the chairman, the company‘s strategic initiatives are to grow through alliance and partnership in projects development and also diversify its investment portfolios.

He said that the company had established another wholly owned subsidiary, Mutual Model Transport Limited, with a fleet of 200 buses.

The Mutual Benefit Assurance boss also disclosed that the management of the company had created a convertible bond redemption reserve for a gradual liquidation of the convertible bond.

The implication of this, he explained, was that there was a reserve that could be used for the benefit of all existing shareholders through the payment of script dividend in the very nearest future.

He said, ”We are committed to creating and having a highly successful and sustainable business. Our commitment to delivering superior services to customers, providing career development opportunities for employees and building value for shareholders remains unwavering.”

Speaking on the Nigerian economy, Oyibo observed that individuals and companies had not recovered from the global economic downturn and the capital market experience, where margin facilities for investment turned to huge debts.

He noted that in 2009, the Nigerian banking sector was dominated by news of the Central Bank of Nigeria‘s audit of all the country‘s 24 banks.

However, he said the economy had not felt the impact of the CBN‘s intervention in the banking sector.

Rather, he said it had made the bankers to be too careful in their lending policies, thereby making it impossible for small-scale enterprises and companies to access finance for their operations.

Source: Punch