Mutual Benefits Assurance Plc has demonstrated robust financial performance in its 2024 full-year results, reporting a remarkable 92% surge in profit, reaching N11.32 billion compared to N5.89 billion in 2023. This substantial growth can be primarily attributed to two key factors: strong investment returns and a significant reversal in reinsurance losses. The company’s strategic investment activities yielded impressive results, contributing significantly to the overall profitability. Simultaneously, a shift from reinsurance losses in the previous year to gains in 2024 further bolstered the bottom line. This financial success underscores the company’s effective management and its ability to capitalize on market opportunities.
A deeper examination of the financial results reveals a comprehensive picture of Mutual Benefits’ growth trajectory. Insurance revenue witnessed a substantial increase of 68%, climbing to N66.92 billion from N39.92 billion in 2023. This rise indicates a significant expansion in the company’s core insurance business, reflecting increased market penetration and successful underwriting practices. Furthermore, net investment income experienced a remarkable surge of 163%, reaching N15.74 billion. This exceptional growth highlights the company’s astute investment strategies and its ability to generate substantial returns from its investment portfolio. The positive shift in reinsurance results, from a loss of N2.28 billion in 2023 to a gain of N2.30 billion in 2024, further contributed to the overall profitability.
While the company enjoyed substantial revenue growth and investment income, insurance service expenses also saw a significant increase, more than doubling to N68.14 billion. This rise in expenses, although substantial, can be viewed in the context of the company’s expanding operations and increased business activity. Despite the increased expenses, the net insurance and investment results still showed a healthy increase of 67%, reaching N15.36 billion. This indicates that the company’s revenue growth and investment returns were sufficient to offset the increased costs and contribute to a positive overall result.
The overall financial health of Mutual Benefits Assurance Plc is further reflected in its total comprehensive income, which reached N24.78 billion, a remarkable 124% increase from N11.06 billion in 2023. This figure encompasses all gains and losses recognized during the year, providing a holistic view of the company’s financial performance. The company’s total assets also witnessed significant growth, increasing by 33% to N147.13 billion, indicating a strengthening of its financial position. Furthermore, shareholders’ funds experienced a substantial increase of 82%, reaching N50.27 billion. This growth in shareholders’ funds underscores the company’s ability to generate value for its investors and enhance their equity.
The company’s strong performance is also reflected in its earnings per share (EPS), which climbed to 54 kobo from 29 kobo in the previous year. This increase in EPS signifies improved profitability on a per-share basis, a key indicator of shareholder value creation. Furthermore, the company’s gross premium written for the first half of 2024 rose by an impressive 77% to N39.3 billion. This substantial increase in gross premium written demonstrates the company’s continued growth momentum and its ability to attract new business. This positive trend further solidifies the company’s position in the market and suggests continued strong performance in the foreseeable future.
In conclusion, Mutual Benefits Assurance Plc’s 2024 financial results showcase a year of exceptional growth and financial strength. The company’s strategic focus on driving investment returns and managing reinsurance exposure has yielded significant positive results. The substantial increases in insurance revenue, net investment income, and total comprehensive income, coupled with the growth in total assets and shareholders’ funds, paint a picture of a company on a solid upward trajectory. The impressive increase in earnings per share and gross premium written further reinforces the company’s strong performance and its ability to deliver value to its shareholders. This robust financial performance positions Mutual Benefits Assurance Plc for continued success in the years to come.
