By Ngozi Onyeakusi—— Mutual Benefits Assurance Plc, one of the foremost underwriting firms in Nigeria’s insurance industry has released its consolidated and separate statement of profit or loss for the year ended 31 December 2020 with an increase in gross premium written to N5.378 billion in fourth quarter (Q4)  from N4.944 billion recorded in the corresponding period of (Q4 ) 2019.

The gross premium written for the full year equally rose to N20.194 billion from N18.698 billion in 2019.

While profit after tax rose by 104.5% to N2.155 billion in Q4 from N1.054 billion in 2019,  it rose lower by 25.9% to N4.548 billion in full year from N3.612 billion in 2019.

SUPERNEWS Nigeria earlier reported that Mutual Benefits Assurance Plc has disclosed plans to capitalise through private placement. Consequently, the firm has resolved to increase its authorised share capital to N10.05 billion by the creation of 100 million additional ordinary shares of 50k each.
This was made by Mr Jide Ibitayo, the Company Secretary in a notice of its Extra-Ordinary General Meeting scheduled for Dec. 3rd 2020 and was posted on the website of the Nigerian Stock Exchange. The notice added that shareholders would be required at the meeting to authorise the directors to raise additional capital via the issue of debt or equity or a combination of both, including redeemable convertible bonds, loan stock, bonds with options, whether by way of private placement.
The company, according to the notice, is seeking to raise additional capital of ₦4.80 billion by way of private placement.“Subject to obtaining the regulatory approvals, the private placement shall be by way of sale of 8,888,888,889 ordinary shares of 50k each of the company at the rate of 54k per share,” it said.The company said that the private placement would be sold to Charles Enterprises LLC  and Arubiewe Farms Ltd. It also said that a total of 5,331,044,445 units at ₦2,878,764,000.24 would be sold to Charles Enterprises LLC, while 3,557,844,444 units at ₦1,921,235.999.76 would be sold to Arubiewe Farms Ltd.The company said that the additional capital would enable it to meet the new minimum share capital prescribed by the regulator.
“Given the impact of the COVID-19 pandemic on world economies and the negative investors’ sentiments in the stock market, the company has decided to raise the additional capital required by way of Private Placement of its shares to some existing substantial investors who have indicated their readiness to commit further investment into the company to meet the new minimum regulatory capital,’’ it said.