Royal Exchange Insurance’s gross written premium rises by 15%

October 13th, 2019

Royal Exchange Plc has announced its results for the 2018 financial year, generating a Gross Written Premium of N14.7 billion from its business activities during the period ended December 31, 2018.

This represents an increase of 15 percent, when compared to the figure of 2017, which stood at N12.8 billion.

Making this announcement was the Chairman, Royal Exchange Plc, Mr. Kenny E. Odoqwu, during the company’s Annual General Meeting held in Lagos.

Net Premium Income for the period amounted to N9.1 billion which is a 29.7 percent growth over the 2018 figure, while net underwriting profit amounted to N9.73 billion in the financial year under review.

Underwriting profit went up to N3.67 billion in the 2018 financial year, up from N1.05 billion in 2017, while Net Income stood at N4.35 billion, from the corresponding figure of N2.4 billion in 2017.

A further analysis of the operating results showed that the Total Assets of the group witnessed a growth of 6.74percent, from N33.2 billion in 2017 to N35.53 billion as at December 31, 2018.

Net claims paid for the period under review amounted to N3.1 billion, an 8 percent marginal reduction from the 2017 figure of N3.42 billon.
The Chairman noted that despite the very harsh operating environment, the group was able to deliver a better result in 2018 against the previous years and this was achieved through cost optimization initiatives, innovation in key categories and extensive retail market expansion as well as by participating in large-ticket financial transactions.

According to Odogwu, “Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50-60 percent of our revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country”.

He added that with the recent approval from the National Insurance Commission to undertake agricultural insurance, the company has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance within that sector of the economy and in the couple of months, revenues will start coming in from there.

Speaking further, he noted that “Royal Exchange Plc, will in the years to come, continue to be an aggressive player in the retail market in Nigeria and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are getting thinner, yearly”.

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