Mutual Benefits Extends N2b Rights Issue Till Friday

• Mutual Benefits Extends N2b Rights Issue Till Friday

Mutual Benefits Assurance Plc has extended the application period for its N2 billion rights issue, providing shareholders with more opportunity to pick up their shares.

Securities and Exchange Commission (SEC) approved the extension from Friday, September 14, 2018 to Friday, September 28, 2018. The rights issue opened on Monday, August 6, 2018.

Mutual Benefits Assurance is offering four billion ordinary shares of 50 kobo each to its shareholders at 50 kobo per share. The rights issue was provisionally allotted on the basis of one new ordinary share of 50 kobo each for every two ordinary shares held as at the close of business on November 1, 2017.

The board of the insurance company has said the net proceeds of the rights issue would be used to deepen the capital base of the company and enhance its ability to create more wealth for shareholders.

Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi said the net proceeds of the rights issue would be used to finance the company’s growth plan, including provision of additional working capital and expansion of information and communication technologies to support the company enlarged operations.

He said the strategic goal of the company is to become the number one insurance firm in Nigeria in terms of growth and profitability.

He assured that new investments in technologies would help the company to eliminate delay in its processing and focus more on customer satisfaction.

At a meeting with shareholders, Ogunbiyi reassured them of the board and management’s commitment to sustainable growth, in line with its five-year strategic plan.

Last year, Mutual Benefits Assurance started the implementation of a five-year plan to reposition it.

The plan focused on four key areas of the group’s business, including deepening market penetration and customer acquisition, customer service delivery excellence, transformation of its people and culture and operational effectiveness.

Ogunbiyi noted that the 2017 business year showed the resilience of the company with 15.6 per cent growth in gross premium to N14.04 billion in 2017 from N12.14 billion in 2016, which placed the company among the top insurance firms. Net benefits and claims grew by 53.9 per cent while the company recovered from a loss of N1.35 billion in 2016 to a profit of N1.02 billion in 2017.

According to him, the significant growth in gross premium and better management of resources made 2017 a turnaround year for the company.

He pointed out that the company had demonstrated its commitment to shareholders through the payment of N160 million dividend for the 2017 financial year, assuring that the latest dividend would mark the beginning of consistent dividend payments.