By Cynthia Alo & Jennifer Obinwa
Royal Exchange Plc has said that its gross written premium grew from N12.8 billion to N14.7billion in the 2018 financial year representing a 15 per cent increase.
Chairman of the company Mr Kenny Odogwu, disclosed this at the company’s 50th annual general meeting in Lagos.
Odogwu said: “During the period under review, the company generated a gross written premium of N14.71billion, while that of the preceding year was N12.8billion amounting to an increase of 15 per cent. Also, the claims expense for the year amounted to N3.2billion in comparison with N3.4billion reported in 2017; signalling a dip of eight per cent. Underwriting expenses grew by 32 per cent from N2.6billion in 2017 to N3.4billion in 2018,” he added.
Also, the company’s net premium income grew to N9.1billion in 2018 from N7.1 billion representing a 29.7 percent growth over the 2017 figure. The net underwriting profit rose to N9.7billion in 2018 while underwriting profit went up to N3.7billion in the 2018 financial year, up from N1.05billion in 2017, while net income stood at N4.35billion, from the corresponding figure of N2.4billion in 2017. The operating results showed that the total assets of the group witnessed a growth of 6.74percent, from N33.2billion in 2017 to N35.53billion in 2018. The net claims paid for the period under review amounted to N3.1billion, an eight percent marginal reduction from the 2017 figure of N3.42billion.
Odogwu said that the group delivered a better result in 2018 against the previous year leveraging on cost optimization initiatives, innovation in key categories and extensive retail market expansion as well as participating in large ticket financial transactions.
He said: “Royal Exchange plc envisions a situation where the retail insurance market should be able to contribute between 50 to 60 per cent of our revenues in the future, as the retail market is the future of insurance in Nigeria considering the population of the country.”
He also noted that the company has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance and would generate revenues in months to come.