Prime Business Africa
The revenue of Mutual Benefits Assurance increased to N20,39 billion in the first quarter (Q1) of 2026, surpassing the N19.32 billion reported in the same period in 2025.
While revenue increased by 6 percent, insurance service expense rose by 4 percent, according to analysis of the company’s unaudited consolidated and separate financial statements for the period ended March 31, 2026.
Mutual Benefits said insurance service expense gulped N20,52 billion between January and March 2026, compared to the N19,74 billion expended in the first three months of 2025.
Join our WhatsApp ChannelInsurance service result before reinsurance contracts held increased by 68.20 percent to N130.61 million in the first quarter of this year, exceeding the N410.69 million generated in Q1 2025.
However, net income from reinsurance contracts held dropped to N2.82 billion in Q1 2026, below the N3.14 billion reported in the corresponding period last year, representing a 10 percent decline.
This led to the company’s insurance service results declining to N2.69 billion in the first three months of this year, down by 2 percent, when compared to the N2.73 billion posted in Q1 the previous year.
The company’s earnings were further impacted by a 383.52 percent increase in net foreign exchange losses, which rose to N478.21 million in Q1 2026, from N98.9 million.
As a result, the net investment income decreased to N3.02 billion during the period under review, compared to the N3.31 billion recorded in Q1 2025, indicating a 9 percent drop.
Further analysis showed that net finance expenses from insurance contracts issued rose by 125.82 percent year-on-year, from N406.18 million to N917.23 million, while net finance income from reinsurance contracts held grew by 18.09 percent, from N215.75 million to N254.78 million.
Consequently, net insurance finance expenses surged by 247.87 percent to N662.45 million in Q1 2026, exceeding the N190.43 million reported in the first quarter of last year.
This also impacted net insurance and investment results, which raked in N5.05 billion between January and March 2026, down by 14 percent, when compared to the N5.86 billion recorded in Q1 2025.
However, following an increase in the company’s other income, and a decline in other employee benefit expenses, other operating expenses, and other finance costs, Mutual Benefits was able to grow its pretax profit by 2 percent.
The insurer’s profit before tax (PBT) was N4.53 billion in the first quarter of this year, above the N4.45 billion recorded between January and March of last year.
However, with income tax rising by 60.71 percent year-on-year, from N320.56 million to N515.17 million, the bottom line decreased by 3 percent.
Mutual Benefit reported N4.02 billion profit after tax (PAT) in the first quarter of 2026, dropping from the N4.13 billion post-tax profit reported in Q1 2025.
Meanwhile, Mutual Benefits had the fifth-largest market share in the insurance industry in 2025.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
