Board of directors, Mutual Benefits Assurance plc has secured the approval of its shareholders to increase the Company’s authorised share capital from initial N5 billion to N10 billion by the creation of additional 10 billion ordinary shares.
Also, it secured the nod of the shareholders to raise additional capital via the issue of debt or equity or combination of both including redeemable convertible bonds, loans stock, bonds with options by way of private placement or offer for subscription or both.
The approvals were secured during the Company’s Annual General Meeting held in Lagos.
Chairman of the Company, Chamberlain Oyibo said the new capital was necessary to enable the company continues its expansion project targeted at enhancing shareholder value.
“Our focus remains to continue to add value to all our stakeholders and to ensure maximum focus on revenue generation and optimization. We will ensure operating at full force by engaging a significant improvement across all areas of our business.”
Oyibo stated that the goal of Mutual Benefits is to become the insurance of choice in Africa and it is prominently place among insurance companies in the world.
On the financials, the chairman pointed that without doubt, the 2012 financial year was quite challenging even though the company continued to maintain its short and long term growth expectations.
Its gross premium income grew by 18 percent from N6.712 billion in 2011 to N7.9 billion in 2012, whereas underwriting result appreciated by 8 percent from N2.90 billion in 2011 to N3.14 billion at the end of 2012.
Investment income recorded a significant growth by almost double of the 2011 figure, moving from N1.9billion in 2011 to N3.6 billion in 2012 representing 88.25 percent achievement.
However, the company posted profit before tax loss of N290.6 million. The Loss according Oyibo was the impact of the reinstatement of the previous years’ financial statement in line with fist time adoption of the International Financial Reporting Standard (IFRS) and full compliance.
The Company’s total asset also moved up by 43 percent to N28.29 billion from N19.66 billion in2011, whereas shareholders fund went up also by 25.45 percent to close at N3.58 billion against N2.85 billion in 2011