Mutual Benefits opens N2bn rights issue
Mutual Benefits Assurance Plc has opened its rights offering to raise N2bn, following the approval by its shareholders.
The firm said in a statement that the shareholders, at its recent annual general meeting, expressed their support for the N2bn rights issue intended to increase shareholders’ funds, strengthen its capital base, deepen capacity to underwrite risks, upgrade its information technology and enhance its working capital.
“The N0.50 rights issue of four billion ordinary shares is scheduled to be available between August 6, 2018 and September 14, 2018 on the basis of one new share for every two shares held as at October 31, 2017,” the firm stated.
The Chairman of the company, Dr Akin Ogunbiyi, reassured the shareholders of the firm’s commitment to sustainable growth in line with its five-year strategic plan.
According to the statement, the 2017 financial year revealed a 15.6 per cent growth in gross premium to N14.04bn from N12.14bn in 2016, which puts the firm among the league of top Nigerian insurance companies.
While noting that its net benefits and claims grew by 53.9 per cent from 2016’s figures, Mutual Benefits Assurance added that the significant growth in gross premium and better management of resources made 2017 a turnaround year for it.
“Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments,” Ogunbiyi said.
The firm said the biggest improvement was the N1.02bn profit that was declared as against the N1.35bn loss recorded in 2016.