• Wednesday, May 29, 2024
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Royal Exchange records N9.08bn gross premium, pays 5k dividend


Royal Exchange plc during the 2013 financial year recorded gross premium income of N9.08 billion as against N7.61 billion in the 2012 financial year, being a 19 percent growth.

This is as the Company furthered on its growth trajectory, expanding into new markets and maintaining a stronghold on its existing business in the year under review.

Investment and other incomes grew by 190 percent to N2.5 billion as against N862.1 million in the previous year.

Kenneth Ezenwani Odogwu, chairman of the company who disclosed this during the 45th annual general meeting of Royal Exchange plc held in Lagos, said despite the harsh operating in environment in 2013, the company achieved profit before tax of N828.2 million an increase of 18 percent from N703.1 million in 2012.

 This is as profit after tax rose by 41 percent to close N806.3 million.

Following the result, shareholders got a dividend of 5 kobo per share as against 4 kobo the previous year, amounting to N80.5 million.

Details of the financials show a total assets growth of N22 percent, moving from N16.63 billion in 2012 to N20.27 billion in 2013. 

Though management expenses rose to N2.53 billion in 2013 as against N1.98 billion in 2012, Odogwu attributed the rise to branch expansion; retail business development and investments in e-business and information technology.

He noted that the company is working out measures to raise its capital to enable it improve performance.

On future outlook, he identified growth areas including oil and gas, power, Takaful and micro insurance as well as health insurance as possible sources of premium income for the industry in the current year.

“The oil and gas sector would continue to be a major contributor of premium to the insurance market next year, although government’s rigorous revenue diversification drive, away from volatile hydrocarbon exports, would open up manufacturing and agriculture as one of the new frontier markets”.

“Substantial growth in Takaful and Micro-insurance services in the retail insurance space will likely occur to boost insurance penetration amongst the lower income class.”

He noted that Royal Exchange is bracing up to take advantage of many of these identified initiatives in its quest to grow market share and attain leadership position. “Moreover, our three year transformation plan is on course and has contributed immensely in streamlining our performance parameters, developing our retail business, reinforcing our asset management franchise and aligning with our shared-services objectives”.

Chike Mokwunye, group managing director, said the rise in the company’s revenue was as result of increase in premium from the life business, Royal Exchange Prudential plc, while other subsidiaries of the group has continued to show strength in their areas of business.

Mokwunye said the company’s philosophy to deliver to shareholders without compromising on service standards remains sustainable. “Looking ahead, the potentials for further growth in insurance penetration levels remain buoyant due to the continuing reforms being undertaken by the National Insurance Commission.”

Modestus Anaesoronye