Mutual Benefits Assurance Plc has projected a profit after tax of N15.41 billion for the 12 months ending December 31, 2026.
According to the company’s 2026 earnings forecast dated September 21, Mutual Benefits expects gross written premium (GWP) of N96.82 billion, while insurance revenue is projected at N89.42 billion.
The insurer expects its non-life business to contribute 72% of total GWP, with the life business accounting for the remaining 28%.
Investment income to support earnings
Mutual Benefits projects N13.16 billion in net investment income, which it says will be driven largely by its investments in financial assets.
The company expects an insurance service result of N8.66 billion after accounting for insurance service expenses and net income from reinsurance contracts.
After combining insurance and investment results, the company forecasts net insurance and investment results of N19.84 billion.
It then expects total non-attributable expenses of N2.76 billion and income tax expense of N1.90 billion, bringing projected profit before tax to N17.31 billion and profit after tax to N15.41 billion.
Cash position
On cash flow, Mutual Benefits expects to generate N8.33 billion from operating activities and spend N7.42 billion on investing activities.
Financing activities are projected to provide N7.20 billion, resulting in a net increase in cash and cash equivalents of N8.11 billion before the impact of exchange-rate movements.
After accounting for a projected N1.94 billion negative effect from exchange-rate changes, the company expects to end 2026 with N44.52 billion in cash and cash equivalents, compared with N38.35 billion at the start of the year.
What to watch
The key figures to watch are premium growth, investment income and the conversion of the projected insurance revenue into profit.
The forecast is an estimate for the full 2026 financial year, so actual results may differ when Mutual Benefits reports its audited results.
