Lagos, Jan. 20, 2025 (Naija247news) – Mutual Benefits Assurance Plc has announced its decision not to acquire any insurance company for the recapitalisation exercise mandated under the Insurance Reform Bill 2024.
Thank you for reading this post, don't forget to subscribe!Dr. Akin Ogunbiyi, Chairman of Mutual Benefits Assurance Plc, disclosed this during the company’s 29th annual thanksgiving in Lagos, themed “Thus Far Has the Lord Helped Us.”
Recapitalisation Compliance Without Acquisition
The Insurance Reform Bill 2024, passed by the Nigerian Senate in December 2024, increased the minimum capital requirements for insurers, with:
•N15 billion for non-life insurers (up from N3 billion),
•N10 billion for life insurers (up from N3 billion), and
•N35 billion for reinsurance businesses (up from N10 billion).
Ogunbiyi affirmed that Mutual Benefits is fully capitalised at N18 billion—comprising N8 billion for Life Insurance and N10 billion for General Insurance—and will not face challenges meeting the new requirements.
“We have a company brand and culture and do not intend to mix it with another. Many foreign companies have offered to acquire Mutual Benefits, but we turned them down because of our decision,” he said.
Industry Challenges and Fresh Capital Debate
Ogunbiyi expressed concerns about the recapitalisation mandate, noting that insurance companies face distinct challenges compared to banks.
He highlighted that banks benefit from the N45 trillion federal budget through facilitated transactions, while insurers struggle due to low enforcement of compulsory insurance laws.
“Insurers are struggling to sustain their businesses and should not go through the additional burden of raising fresh capital,” he added.
Business Performance and Growth
Despite a challenging business environment, Mutual Benefits Group achieved remarkable growth in 2024, increasing its Gross Written Premium (GWP) to N40 billion, a significant leap from N23 billion in 2023.
Managing Director, Mr. Femi Asenuga, shared an optimistic outlook for 2025, emphasizing that the company plans to leverage opportunities in the year’s budget.
Thanksgiving Event Highlights
At the thanksgiving event, Pastor Poju Oyemade of The Covenant Nation encouraged gratitude, referencing 1 Samuel 7:12. The ceremony also featured awards for staff and performances by the company’s choir.
Stay updated with Naija247news for more on the Nigerian insurance sector and Mutual Benefits’ journey.
