MUTUAL BENEFITS ASSURANCE: LESS TO MUTUALLY SHARE.

The current financial year is almost certain to end with Mutual Benefits Assurance PLC having a lot less to mutually share amongst shareholders, if at all.

According to the half year figures to June released recently, reinsuring far less of its risks did not result in higher profit for Mutual Benefits Assurance, in fact its profit before tax tumbled by 85.4% to N387.6m.

Yet it hard a good foundation by reducing reinsurance by 65.3% to N888.2m as gross premium earned dropped by 23.6% to N6451.8m.

Principally because of the higher risk retained, underwriting profit more than doubled to N2907.4m even as underwriting expenses grew by 34.7% to N1278.5m; and fee and commission decreased by 7.46% to N78.1m.

The underwriting profit was reduced drastically by 77.8% increase in Other management expenses to N2386.7m ; 61.3% rise in employee costs to N783.1m and 82.3% decrease in investment income to N199.2m

The tumble also occurred in spite of 114.8% increase in other income to N128.9m; N321.1m gain from investment contracts; and N133.2m as finance income.

Thus the 85.4% decrease in profit before tax came from a far lower 24.7% drop in total income to N7312.3m. Decoded: All things being equal, Mutual Benefits Assurance PLC may end the year with far less to mutually share.

MUTUAL BENEFITS ASSURANCE PLC: Nm.    Half year
                           2016.         2015
Total income   7312.3.      9706.8
Gross premium 6451.8.    8440.0
Reinsurance.       888.2.    2562.3
Fee commission   78.1.        84.4
Net claims          1455.8.   1612.7
Underwriting exp. 1278.5.  949.3
         " profit.          2907.4. 1400.1
Contracts gain     321.1         -
Investment income  199.2 1122.4
Fair value gain.       (12.8).      -
Other income.      128.9.        60.0
Employee costs   783.1.     485.4
Other expenses  2386.7.   1342.7
Finance costs.       13.3.      4.48
Finance income    133.2.      -
Profit before tax   387.6.    2661.6

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