Mutual Benefits Assurance Plc (Mutual), one of the life and non-life risks underwriting groups in the country, recorded N755.72 million profit from its operations for the year ended December 31, 2011.
This translates to a 7.18 per cent shortfall from the N813.89 million profit it made in the corresponding period of last year. This information formed part of the 2011 Annual Report and Accounts approved by shareholders during the 16th Annual General Meeting (AGM) of the company, which held in Lagos recently.
Gross premium income raked in by the firm last year peaked at N10.07 billion, a 34.81 per cent improvement on the figure of the previous year which was N7.47 billion. Also gross premium written by the firm rose by 62.31 per cent, rising from N3.37 billion in 2010 to N5.47 billion in 2011.
Net premium earned by the firm within the year under consideration also rose by 63.27 per cent, moving up from N2.94 billion in 2010 to N4.80 billion last year while commissions raked in by the firm last year peaked at N35.85 million last year, a 51.33 per cent increase over the N23.69 million recorded in 2010.
Within the year under review, underwriting income raked in by the group rose from N2.97 billion in 2010 to N4.83 billion last year, a 62.63 per cent improvement.
Also last year, Mutual incurred claims to the tune of N1.06 billion last year, a 44.82 per cent increase in value and an indication of having better met policyholders' expectations. In the previous year, claims incurred by the company were N731.57 million.
Also last year the company made underwriting profits to the tune of N3.51 billion, a 67.14 per cent increase over the N2.10 billion made in 2010.
The group raked in N975.87 million and N276.81 million from other areas of its operations and investments respectively. Its investments from other areas of operation rose by 22 per cent in the previous year over the N799.89 million recorded in 2010 just as its investment income in 2011 was 20.79 per cent higher than the N229.16 million recorded in 2010.
Also, income from other sources that accrued to the firm in 2011 fell short of its 2010 figure by as much as N67.12 per cent, as the figure fell from N160.08 million in 2010 to N52.63 million in 2011. Net operating income made by the group rose from N3.42 billion in 2010 to N4.90 billion in 2011, a 43.27 per cent increase.
The company in 2011 recorded N1.01 billion profit before taxation and levies as against N957.11 million made in 2010, a 5.22 per cent improvement in performance. Also its profit before taxation after levies was N996.40 million, a 4.11 per cent improvement over the figure for 2010 which peaked at N957.11 million.
However, the profit after taxation raked in by the firm in 2011 fell to N755.72 million from the N813.89 million made in 2010; a 7.18 per cent shortfall.
The composite insurance group within the year under consideration maintained its paid up share capital and revaluation reserves within the period under consideration at N4.0 billion and N24.54 million respectively. It also increased its statutory reserves by N1.79 million in 2011.
Its contingency reserve was also grown by as much as 16.38 per cent, having been raised from N912.46 million in 2010 to N1.06 billion in 2011 just as its general reserve was raised from N288 million in 2010 to N1.04 billion in 2011; a 262.21 per cent increase.
Shareholders' interest in the company was grown to the tune of 17.43 per cent, having been increased from N5.22 billion in 2010 to N6.13 billion in 2011.
The Mutual group last year increased its short term investments by 229.08 per cent from N356.88 million in 2010 to N1.17 billion in 2011 and reduced its long term investments by 33.65 per cent from N2.08 billion in 2010 to N1.90 billion in 2011. It also increased its investments in properties by 6.86 per cent from N2.77 billion in 2010 to N2.96 billion in 2011.
Its insurance fund was drawn down to the tune of 389.58 per cent, from N1.92 billion deficits in 2010 to N9.40 billion in 2011. Also its deposit administration liabilities was reduced by 59.60 per cent from N4.48 billion in 2010 to N1.81 billion in 2011.
The company's total assets were grown to the tune of 33.19 per cent from N16.72 billion in 2010 to N22.27 billion in 2011. The basic earnings per share by the insurance company went down by 12.50 per cent, going up from 8 kobo per share in 2010 to 7 kobo in 2011.