Royal Exchange defies the odds   

EMEKA EJERE

Royal Exchange Insurance Plc has continued to resist the volatile and tough operating environment of Nigeria, recording a double digit growth in half year profit.

Despite the hostile operating environment experienced by the insurance sub-sector and the financial services industry, the underwriter last week announced profit after tax (PAT) of N203.3 million in the first half of 2017, a feat representing 19 percent increase from N171.14 million premium recorded by the company in the corresponding period in 2016.

The company also announced 11percent increase in its Gross Written Premium for the period from N8.43 billion in 2016 to N9.37 billion in 2017.

Announcing the development in the unaudited financial statement of the company released to the public, Alhaji Muktari said that 2017 first half Gross Premium Income of the company, witnessed a moderate growth of 6.3 percent to stand at N6.86 billion over N6.46 billion recorded in first half 2016.

Net Premium Income for the period amounted to N4.72 billion, representing a marginal growth of 2.5 percent over that of half year 2016, which stood at N4.60 billion.

Total Net Claims paid for the period under review amounted to N1.76 billion, a decrease of 10 percent from half year 2016, figure of N1.95 billion.
“This feat was achieved as a result of stringent underwriting policies implemented throughout the company in the period under review”.

“By focusing on the growth objectives set forth at the beginning of the year, which included an increased focus on the retail and corporate markets, amongst others, we have been able to achieve moderate growth and the board and management of the company are definitely optimistic for the second half of the year”, Muktari stated.

According to him, the beginning of the 2017 financial year witnessed difficulties in the Nigerian economy, but as evidenced by the Royal Exchange results and those of other firms in the Nigerian Stock Market, there is renewed optimism in the Nigerian economy.

“Royal Exchange Plc is hopeful that by focusing our efforts on aggressive sales of our various products and services, including strong presence and participation in the retail sales space and the continued optimisation of our operating costs, we will be able to surpass our financial targets set for ourselves at the beginning of the year,” he stated.

On the state of the insurance industry in Nigeria, Muktari, noted that while government is the biggest spender in the Nigerian economy, it is important that the private sector sees the insurance industry as partners in their progress by taking out policies to ensure not only business continuity, but also peace of mind in the event of any business disruption.

He also noted that increased awareness on the usefulness and benefits of insurance by the media will help increase insurance penetration and wider patronage of the various insurance products in Nigeria.

Royal Exchange Plc is engaged in providing life, healthcare and general insurance, financing, asset management, trusteeship and micro finance banking services. The company’s segments include non-life insurance, life insurance, financial services, healthcare and asset management.

Its general products include, Royal Money Guard, The Royal Burglary Protection, The Royal Fire Protection and Royal Transit Plan.

The company emerged the 2016 Insurance Company of the Year its Group Managing Director, Alhaji Auwalu Muktari, was adjudged the 2016 Insurance Man of the Year.