MUTUAL BENEFITS ASSURANCE: PRESSURES GALORE.

For Mutual Benefits Assurance PLC, 2015 year was simply one in which it was served a cocktail of pressures.

According to the audited figures finally released last week, the company got some relief within the year only from finance cost and income, reduced underwriting and other expenses and from investment contracts from which it recorded N782.2m profit as against N47.6m loss in 2014.

On the income side, the pressures resulted in 21.7% drop in total income to N17292.7m as gross premium earned decreased by 11.2% to N13801.2m, fee and commission went down by 22.9% to N660.4m; as investment income dropped by 19% to N854.3m and as net fair value gain dived 95.8% to N111.7m.

That was not all. Other income also declined by 48.9% to N793.9m; and impairment written back decreased by 91.1% to N8.47m. However, new impairment provision dropped by 48.7% to N54.7m to counter this.

On the side of costs, reinsurance decreased by only 2.04% in spite of the double digit drop in premium earned; staff expenses rose by 22.6% to N1863.6m and claims dropped only marginally by 1.22% to N2337.4m.

In the end, Mutual Benefits Assurance could only report N1195.3m profit before tax for the year, down 76% on 2014's N4980.9m.

In other words, average gain on each N100 income dived to N6.91 from 2014's N22.5.

MUTUAL BENEFITS ASSURANCE: Nm full year
                      2015.    2014
Total inc.  17292.7 22096.6
Premium. 13801.2 15535.6
Reinsurance 6066.6 6193.2
Commission 660.4.  857.0
Ins. Expense2143.9 2405.9
Contract gain 782.2 (47.6)
Invest. Inc.     854.3 1054.7
Fair value       111.7 2630.1
Other inc.       793.9 1553.8
Impairment.   54.7.   106.7
" not required 8.47.  94.8
Staff costs   1863.6 1519.5
Other costs 3543.4. 4063.7
Finance cost. 29.8.     53.0
" income       249.9    191.0
Profit b4 tax 1195.3 4980.9
Margin %       6.91.     22.5

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