Mutual Benefits assures stakeholders of capital strength

Mutual Benefits Assurance Plc has assured stakeholders of its strong capital position and readiness to scale through the ongoing insurance industry recapitalisation exercise, as it celebrated its 30th anniversary with a thanksgiving service in Lagos.

Speaking at the thanksgiving service, the Chairman of Mutual Benefits, Dr. Akin Ogunbiyi, said that the company has invested about $64 million in a producing oil asset, describing the move as a significant milestone for a firm that began operations three decades ago with an initial capital of about N5 million.

Ogunbiyi said the investment reflects the company’s evolution, resilience and long-term growth strategy, noting that Mutual Benefits has successfully transformed from a modest local insurer into a diversified financial services group with regional footprints.

He also highlighted the growing contribution of the company’s regional subsidiaries, revealing that Mutual Benefits’ operation in Niger Republic has emerged as the second-largest insurer in that market, with prospects of becoming the market leader following the exit of some francophone competitors.

Reflecting on the company’s journey, Ogunbiyi recalled how Mutual Benefits navigated major financial and operational challenges, including a liquidity crisis in 2020, which was resolved through a $10 million capital injection from U.S. investors, as well as the successful resolution of a debt dispute at a London court.

He paid glowing tribute to the company’s staff, recounting several storms the organisation weathered over the years, including the Daewoo loan crisis, which he said had threatened not only Mutual Benefits but other insurance firms in the industry.

The chairman also traced the company’s humble beginnings and its expansion beyond Nigeria to countries such as Liberia and Niger, where it is steadily building a leadership position in the insurance market.

On expansion strategy, the management of Mutual Benefits said the company remains cautious about mergers and acquisitions.

The Managing Director/Chief Executive Officer, Mr. Olufemi Asenuga, explained that while acquisitions remain an option, they are not a priority at the moment, citing challenges encountered after the 2007 acquisition of Worldwide Insurance.

Instead, Asenuga said the company is leveraging technology to revive and expand its microinsurance business, which had previously been constrained by high distribution costs.

According to him, a technology-driven rollout is now being planned to deepen market penetration and improve efficiency in the segment.

Asenuga assured stakeholders that Mutual Benefits is well positioned to navigate the ongoing recapitalisation exercise, having proactively strengthened its capital base long before the current regulatory push.

He disclosed that despite several regulatory directives issued to the industry in the last five years, the company had already exceeded the capital thresholds of N10 billion for Life insurance and N15 billion for General insurance businesses.

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“By 2020, we had already complied with the initial directives. As we speak today, we have not only met the minimum requirements, we have surpassed them for both the Plc and the Life company,” Asenuga said.

He added that the group’s focus has moved beyond regulatory compliance to injecting additional liquidity to support aggressive business growth and expansion.

Beyond underwriting, Asenuga revealed that the group’s diversification into the energy sector serves as a hedge against domestic economic cycles.

“It has not been easy for a company to stand this tall after 30 years, especially in an economy characterised by volatile government and regulatory policies,” he said.

The thanksgiving service, held to mark Mutual Benefits Assurance Plc’s 30th anniversary with the theme “Fulfilling Purpose,” attracted industry stakeholders, financial sector leaders, staff, well-wishers and a former Commissioner for Insurance, Mr. Fola Daniel.

The colourful event featured the presentation of long-service awards and cash gifts to staff in recognition of their dedication and loyalty to the company over the years, including the Managing Director/CEO himself, who has spent 30 years with the organisation.

Asenuga emphasised the company’s commitment to customer satisfaction and a supportive work environment, noting that a strong workplace culture has played a key role in retaining talent and sustaining growth.