MUTUAL BENEFITS ASSURANCE LESS SURE OF PROFIT.

In the three months to March 2016, it was a clear case of being less sure of profit for Mutual Benefits Assurance PLC.
According to the unaudited figures for the period released last week, the cookie crumbled a little mainly because higher core income had no good support from non-core interests as overheard mounted.
Total income had ended the three months up 15% to N3909.7m with good push from premium earned which rose by 38.4% to N3367m. But the lower growth for total income resulted from 32.7% and 32.6% drops in investment and other income to N362m and N49.2m respectively.
Hence, in spite of 32.8% rise in underwriting profit due to 27.5% increase in claims recovered and 24.8% drop in other underwriting expenses, final profit recorded by Mutual Benefits for the quarter dropped by 28.8% to N411.6m.
Interestingly, 17.4% decrease in employee expenses  to N261.7m had helped, but 14.2% increase in management cost to N981.2m and N259.3m new impairment provision applied pressure downwards.
Thus, Mutual Benefits Assurance ended the quarter to March with 10.5% profit margin compared to 17% previously.
MUTUAL BENEFITS ASSURANCE:
              Nm First quarter.
                           2016.         2015
Total income* 3909.7.        3400.7
Premium        3367.0.        2433.7
Reinsurance.    505.7.         440.4
Commission       12.3.           67.3
Claims.             885.5.       492.8
Rec. Claims.     119.2.      110.9
Acquisition cost 427.7.    311.2 underwriting cost 177.0   235.3
Investment gain   362.0.  537.2
Other income         49.2     84.5
Impairment         259.3.      -
Personnel.           261.7.    316.7
Management      981.2.    859.2
Profit before tax 411.6.    577.7
Profit margin.%    10.7.      17.0
*Includes recovered claims from reinsurance.

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