Mutual Benefits Assurance Plc has been granted approval by the Security Exchange Commission (SEC) for an extension of the offer period of its rights issue.
The rights issue which opened on August 6, was earlier billed to close on September 14, 2018, but had been extended to September 28, 2018.
This new extension will allow shareholders who had not been able to exercise their rights the opportunity to do so.
It is expected that proceeds from the rights issue would enable Mutual Benefits to carry out its recapitalisation and growth plan, provide additional working capital and finance the transformation of its IT infrastructure to support its enlarged operations.
Breaking the dividend drought
Recall that the company recently, in a notice sent to the Nigerian Stock Exchange, announced plans to pay its shareholders dividend for the year ended 2017. The last time it paid a dividend was in 2008.
Insurance companies on the NSE, have a history of poor performance in terms of price appreciation and corporate governance. The recent shift in the minimum price floor to N0.01 left many insurance stocks hard hit.
In its 2017 full year reports for the period ended 31 December 2017, the gross premium written increased by 16% from 12.4 billion in 2016 to 14.4 billion in 2017. It also recorded a profit before tax of 1.3 billion in 2017 as against a loss of 1.06 billion in 2016. Net claims paid by the Group in 2017 stood at N5.15 billion from N3.35 billion in 2016, resulting in a 54 percent increase from the previous year.
Mutual Benefits Assurance Plc was incorporated on April 18, 1995, under the name Mutual Benefits Assurance Company Limited. The company was converted and re-registered as a public limited liability company on May 24, 2001. It became listed on the NSE on May 28, 2002.
Its shares price as at today is N0.26 on the floor of the Nigerian Stock Exchange. Its one year return is down by 44.65%.
