Mutual Benefits records N13.89 billion pre-tax profit as insurance revenue hits N65.16 billion

Mutual Benefits Assurance Plc reported a pre-tax profit of N13.89 billion for the nine months ended September 30, 2026, representing a decline of 9.1% from N15.28 billion in the corresponding period of 2025, despite growth in insurance revenue.

According to the company’s unaudited consolidated financial statements for the period ended September 30, 2026, insurance revenue increased by 7.1% to N65.16 billion from N60.86 billion.

However, higher insurance service expenses and weaker investment income affected the group’s nine-month profitability, with profit after tax declining by 14.1% to N12.27 billion from N14.28 billion.

Key Highlights

• Insurance revenue: N65.16 billion (Up 7.1% YoY from N60.86 billion).
• Insurance service expenses: N60.71 billion (Up 24.0% YoY from N48.97 billion).
• Insurance service result: N5.20 billion (Down 44.5% YoY from N9.36 billion).
• Net investment income: N9.91 billion (Down 14.0% YoY from N11.52 billion).
• Net insurance and investment results: N13.72 billion (Down 26.2% YoY from N18.60 billion).
• Profit after tax: N12.27 billion (Down 14.1% YoY from N14.28 billion).
• Earnings per share: 57 kobo (Down from 69 kobo).
• Total assets: N207.90 billion (Up 18.0% from N176.25 billion).
• Total equity: N86.67 billion (Up 24.3% from N69.73 billion).
• Cash and cash equivalents: N40.13 billion (Up 4.6% from N38.35 billion).

Driving the numbers

Mutual Benefits Assurance’s insurance revenue growth was supported by its non-life business, which contributed N47.5 billion, representing 73% of group insurance revenue.

• Life and medical insurance accounted for the remaining N17.6 billion, or approximately 27%.
• Motor insurance remained the group’s largest product line, generating N20.7 billion, equivalent to about 32% of total insurance revenue.
• Motor insurance revenue increased by 15%, while fire insurance revenue rose by 18%.

However, aviation insurance revenue declined to N130 million from N1.50 billion in the corresponding period of 2025.

Despite the increase in insurance revenue, insurance service expenses grew at a faster rate of 24% to N60.71 billion from N48.97 billion.

• Consequently, the insurance service result before reinsurance fell to N4.45 billion from N11.89 billion.

This pressure was partly offset by an improvement in reinsurance performance, with the group reporting net reinsurance income of N744.16 million, compared with a net expense of N2.53 billion a year earlier.

• Nevertheless, the overall insurance service result declined by 44.5% to N5.20 billion from N9.36 billion.

Investment income and profitability

Net investment income declined by 14% to N9.91 billion from N11.52 billion.

• Although interest revenue increased to N8.67 billion from N7.80 billion, the group recorded net foreign exchange losses of N793.33 million, compared with gains of N192.29 million in the corresponding period of 2025.
• Profit on investment contracts also declined to N1.39 billion from N3.03 billion, contributing to the weaker investment performance.

As a result, net insurance and investment results declined to N13.72 billion from N18.60 billion.

However, other income increased significantly to N1.78 billion from N153.19 million, with management’s financial highlights attributing approximately N1.6 billion to the group’s oil and gas subsidiary, Mutual Exploration and Production Limited.

Other operating expenses declined to N1.17 billion from N2.73 billion, while employee benefit expenses decreased to N856.12 million from N1.15 billion.

Despite these cost reductions, the decline in insurance service and investment results weighed earnings, with pre-tax profit falling by 9.1% to N13.89 billion.

Income tax expense increased to N1.62 billion from N999.63 million, leaving profit after tax at N12.27 billion, compared with N14.28 billion in 9M 2025.

Third-quarter earnings improve

Mutual Benefits Assurance recorded a stronger performance in the third quarter, with insurance revenue increasing by 16.5% to N22.91 billion from N19.66 billion in Q3 2025.

Insurance service expenses declined to N16.84 billion from N19.47 billion, supporting an increase in insurance service result to N4.56 billion from N1.39 billion.

The group also recognised other income of N1.64 billion during the quarter, compared with N71.05 million in the corresponding period of 2025.

Consequently, quarterly pre-tax profit increased to N7.54 billion from N2.99 billion, while profit after tax rose to N6.52 billion from N2.69 billion.

The stronger third-quarter performance helped support the group’s nine-month earnings despite the decline recorded over the full reporting period.

Balance sheet and cash flow

Mutual Benefits Assurance’s total assets increased by 18% to N207.90 billion as of September 30, 2026, from N176.25 billion at the end of December 2025.

• The increase was supported by higher financial assets measured at amortised cost, which rose to N96.33 billion from N86.99 billion, alongside an increase in reinsurance contract assets to N18.49 billion from N15.25 billion.
• Other notable asset movements included N8.65 billion placed with the Central Bank of Nigeria as part of the group’s recapitalisation process, while trade receivables rose to N4.53 billion from N2.16 billion.

On the funding side, total liabilities increased by 13.8% to N121.22 billion from N106.52 billion, driven largely by higher insurance contract liabilities, which rose to N69.15 billion from N58.06 billion.

• Investment contract liabilities also increased to N37.83 billion from N36.78 billion, while borrowings remained unchanged at N400.87 million.
• Total equity rose to N86.67 billion from N69.73 billion, supported by retained earnings and an N8 billion capital injection into Mutual Benefits Life Assurance Limited by other shareholders.

However, cash flow performance was weaker. Net operating cash flow recorded an outflow of N4.3 billion, compared with an inflow of N6.7 billion in 9M 2025.

• Financing activities generated a net inflow of N7.2 billion, reflecting the N8 billion subsidiary share issuance, partly offset by dividend payments of N802.47 million.

Despite the operating cash outflow, cash and cash equivalents ended September at N40.13 billion, compared with N38.35 billion at December 2025.

Market reaction

Mutual Benefits Assurance shares gained 1.64% to close at N3.09 on Friday, October 30, 2026, compared with N3.04 in the preceding trading session.

However, the stock recorded a year-to-date loss of 0.32%, while its month-to-date performance was negative 1.28%, according to the supplied market data.

At the closing price of N3.09, the company’s market capitalisation stood at approximately N61.99 billion.