Mutual Benefits Assurance Plc proposed rights issue of 4,000,000,000 ordinary shares of 50 Kobo each at an offer price of 50 Kobo per share will raise N2 billion for the company to activate a five year plan if all shareholders decide to take up their rights.
The rights issue, which opened last Monday and will close for subscription Friday, 14 September 2018 is on the basis of one new ordinary share for every two ordinary shares held as at 1 November 2017.
According to the company in an explanatory note, the N2 billion rights issue will increase shareholders’ funds, strengthen the company’s capital base, deepen capacity to underwrite risks, upgrade its information technology and enhance working capital of the company.
Reassuring shareholders of the firm’s commitment to sustainable growth in line with its five-year strategic plan, Akin Ogunbiyi, chairman of the company, said both shareholders’ funds and policyholders’ funds are represented by the right portfolio mix of short and long-term investments.”
In the 2017 financial year end, the insurance firm recorded a 15.6 percent growth in gross premium to N14.04 billion from N12.14 billion in 2016, which puts the firm among the league of top Nigerian insurance companies.
The firm’s net benefits and claims also grew in 2017 by 53.9 percent from 2016’s figures, with a significant growth in gross premium and better management of resources which made 2017 a turnaround year, the firm said.
It added that the biggest improvement was the N1.02 billion 2017 profit declared against a N1.35 billion loss recorded in 2016.