Dr. Akinade Akanmu Ogunbiyi Mutual Benefits Assurance Plc has commenced its quest for fresh capital worth N2 billion, by offering ₦0.50 rights issue of four billion ordinary shares, between August 6, 2018, and September 14, 2018, on the basis of one new share for every two shares held as at October 31, 2017.
The offer, which was endorsed by shareholders at its yearly general meeting, would help to increase the company’s shareholders’ funds, strengthen the capital base requirements, deepen capacity to underwrite risks, upgrade information technology and enhance working capital.
The Chairman of the company, Dr. Akin Ogunbiyi, at the meeting, reassured the shareholders of the company’s commitment to sustainable growth, in line with its five-year strategic plan.
“Both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments,” he said, adding that the biggest improvement was the ₦1.02 billion profit that was declared in 2017, against the ₦1.35 billion loss recorded in 2016.
He noted that the company has demonstrated its commitment to shareholders through the payment of ₦160 million dividend for the 2017 financial year, a development that elicited excitements among the shareholders.
Ogunbiyi reiterated that the payment of the dividend would mark the beginning of consistent dividend payments to its shareholders.
The 2017 financial year revealed a 15.6 per cent growth in gross premium to ₦14.04 billion, from ₦12.14 billion in 2016, which puts the company among the league of top Nigerian insurance companies.
Net benefits and claims grew by 53.9 per cent from the 2016 figures, while the significant growth recorded in gross premium, as well as improved management of resources, made 2017 financial year a point of turnaround for the company.