GROSS PREMIUM INCOME OF ROYAL EXCHANGE GROUP INCREASES BY 14%

Royal Exchange Group has posted a gross premium income of N10.79 billion for the 2015 financial year. Addressing shareholders at the Annual General Meeting (AGM) in Lagos, Chairman of the company, Mr. Kenneth Odogwu, said that the figure edged up by 14 per cent as the company recorded N9.43 billion in 2014.

Odogwu said the firm’s net premium income peaked at N8.08 billion, profit/loss for the period closed at (N1.29 billion) while total assets stood N26.53 billion. According to him, the firm’s net claims peaked at N3.04 billion, as against N2.43 billion recorded in 2014, the underwriting expenses decreased by four per cent from N2.74 billion in 2014 to N2.64 billion last year. He noted that the management expenses were N3.27 billion as against N3.09 billion in the previous year, adding that an increase in reserve of N1.2 billion was made by the group for the insurance and investment liabilities of the life subsidiary with the period under review.

Odogwu said that the Group is presently streamlining major components of its businesses, service delivery, processes and operations in order to deliver superior returns to shareholders.

He said, “This we believe will reposition our great company as not only a major industry player but as a potential game changer. The future of our company and our plans for 2016 are well on course notwithstanding the current downturn in our domestic economy.”

He predicted the clamour for greater government’s participation as well as the enforcement of compulsory insurance regulations as provided by the Market Development and Restructuring Initiative (MDRI) are expected to be a top priority of the National Insurance Commission (NAICOM) in 2016.

“As always, Royal Exchange stays abreast with many of the initiatives mentioned above in our quest to grow market share and attain market leadership position,” he said.

Mr. Auwalu Muktari, Group Managing Director and Chief Executive Officer of Royal Exchange Plc, said the Group remains focused on achieving its strategic plan of steering the company towards market leadership.

He said, “We invested in digital solutions that would improve front-end sales, distribution and customer services, as well as enhance back-end operating efficiency and expenses management.”

He added that the performance of the company in 2015 was a good show of spirit and tenacity, just as its revenue diversification drive away from traditional markets recorded good progress in deepening its tentacles in some frontier markets, most especially retail and agribusiness.

In his words, “In future, we intend to be more active in micro-insurance to bridge the insurance needs of the yearning public, including the upcoming millennial. Looking ahead, our goal is to continuously redefine, reinvent and differentiate ourselves in the market place. The focus would be on achieving long-term sustainable growth for our shareholders through the broadening of our revenue base, improving service delivery support systems and at the same time, keeping a lid on our group costs.” (Vanguard)