WorldStage— Mutual Benefits Assurance Plc, one of Nigeria’s biggest insurers by market capitalization, managed its falling liquidity by avoiding investments in long-term assets last year.
Its 2025 audited financial statement (AFS) recorded a net decrease in cash by 97 of its net cash increase the year before. Its cash and cash equivalents also fell 21.9 percent over the two years.
An analysis of its cash-liabilities ratio, however, revealed the insurer had enough cash to cover 36 percent of its liabilities within a short time in 2025, though that represented a 33 percent dip from its 2024 cash ratio.
The proportion of its current assets to current liabilities equally indicated an optimal liquidity level of 1.4 in 2025, and 1.5 the year before.
By implication, Mutual Benefits could afford N1.4 to settle every N1.00 of its short-term debts in 2025, compared to N1.5 on every N1.00 of debt the year before.
The insurer attained this liquidity level using the current portion of its total assets which jumped 19.9 percent from N147.1 billion in 2024, to N176.3 billion last year.
Most of the incomes realized from the liquid assets got ploughed back into one of the most liquid short-term investments, as its cash flow statement revealed.
The insurer spent N107.9 billion buying T-bills in 2025, a 64.2 percent rise from N65.6 billion it invested the year before.
In the long-term, its biggest investment in assets was N12.9 billion (up from N429 million in 2024) it invested in acquiring an oil exploration licence as an intangible asset last year.
