… Focus on investments in oil and gas sector
By Bakare Olatunde
The Chairman, Mutual Benefits Assurance, Dr. Akin Ogunbiyi has no intention of acquiring any insurance company for the recapitalisation exercise mandated for insurers in the nation’s insurance sector this year.
This, the chairman revealed at the 29th yearly thanksgiving service in Lagos, saying rather, the underwriter had planned to embark on a strategic investment move in the oil and gas sector that has become the top insurance company in the country.
Ogunbiyi, therefore, assured shareholders and policyholders that the insurer will have a seamless recapitalisation exercise should the insurance industry regulator; the National Insurance Commission (NAICOM) decides to initiate it in the year.
Speaking with journalists at the backside of the programme, Ogunbiyi explained that, due to strategic investment decisions made by the company in recent years, the company would soon become a clear leader in the insurance industry.
According to him, “Two years from now, with our strategic investment in oil assets which have gone into production, the underwriter will be the biggest insurance company in the industry. Apart from the substantial investment, the company is equally the financier of the assets.”
Giving details, he said: “From the little effort we have been making, we had to look for a commensurate long-term investment we can do with life fund, and with the permission of the (NAICOM), we invested in the oil assets. We are optimistic that we will keep growing and with the impact these assets will have on our balance sheet the blue sky will not limit us.”
Also, the Managing Director/Chief Executive Officer, Mutual Benefits Assurance Plc, Femi Asenuga, expressed that despite the harsh economic situation in 2024, the company was able to grow its gross premium written to about N40 billion when compared to about N23 billion reported in the previous year of 2023.
Stating that 2024 was very challenging particularly, with the economy and the galloping inflation recorded in the country which had a direct impact on the disposable income of businesses and individuals and directly affected business generally, he added that, despite these, the insurer did well in gross written premium.
He was optimistic that, the 2025 business year would even surpass the achievements of 2024, even as he assured the company had brought in funds earlier, with the mindset that recapitalisation exercise may commence anytime soon in the insurance industry.
