Mutual Benefits Assurance Plc says it doesn’t intend to acquire any insurance company for the recapitalisation exercise mandated for insurers.
Dr Akin Ogunbiyi, Chairman of Mutual Benefits Assurance Plc, said this in an interview with the News men on the sideline of the insurance company’s 29th annual thanksgiving held in Lagos.
The thanksgiving had the theme: “Thus Far has the Lord Helped Us.”
The Nigerian Senate had in December 2024 passed the Insurance Reform Bill 2024, which raises the minimum capital base for insurance companies operating in the country.
The reform bill sponsored by Mukhail Abiru, Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, proposes N15 billion as the minimum capital requirement for non-life insurance companies, up from N3 billion.
The bill posited N10 billion for life assurance, up from N3 billion; and N35 billion for reinsurance businesses, up from N10 billion.
The bill said: “An insurer registered before the commencement of this bill shall comply with the foregoing requirement within 12 months of the commencement of this bill.”
Ogunbiyi said the decision of Mutual Benefits to stand alone was to enable it maintain its name and brand, built over the years.
He said: “We have a company brand and culture and do not intend to mix it with another, hence we do not intend to acquire any insurance company.
“Many foreign companies had, before now, offered to acquire Mutual Benefits, but we turned them down because of our decision.”
According to him, Mutual Benefits is fully capitalised at N18 billion; N8 billion for Life Insurance and N10 billion for General Insurance, and will not have problems with recapitalisation.
The chairman, however, expressed concern on the recapitalisation, noting that insurance companies really do not need fresh capital like the banks.
Ogunbiyi explained that it was easier for banks to raise capital because all the transactions in the total budget of the country are facilitated through the commercial banks, hence they made money at will.
He said that the situation was different for insurance companies, which required a lot of creativity to sell insurance.
“The N45 trillion budget of the Federal Government goes through the commercial banks and lendings, among other transactions, are also facilitated by banks.
“Unfortunately for the insurance companies, the rule of law on compulsory insurances is not applicable.
“Insurers are struggling to sustain their businesses and as such, should not go through additional burden of raising fresh capital,” he said.
Earlier at the ceremony, Ogunbiyi revealed that praising and thanking God was the secret behind Mutual Benefits’ success.
He said that, amid business hurdles and challenges at every stage of its existence, Mutual Benefits had remained standing among its peers, even when many other companies it started with had fizzled out.
He appreciated former Commissioners For Insurance – Mr Fola Daniel and Mr Sunday Thomas, for the support and understanding extended to the insurance company during their tenures.
The chairman thanked the existing and former staff of the company for their contribution to the growth and stability of the underwriting firm.
The Managing Director, Mutual Benefits Assurance Plc, Mr Femi Asenuga, also thanked God for supporting the insurance company and helping it surmount challenges.
Asenuga said in spite of the harsh business climate witnessed in the country last year, Mutual Benefits Group grew its Gross Written Premium to N40 billion for year 2024, compared to N23 billion recorded in 2023.
On its 2025 Outlook, the managing director said the insurer was well prepared to take advantage of the opportunities that would come with the year.
“The budget for this year is huge and we plan to reap all the benefits and gains that comes with it,” he said.
