Royal Exchange group announces 22% rise in underwriting profit to N11.12 bn

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L –  Independent Director, Royal Exchange Plc, Hewett Benson, Chairman, Chief Kenny Odogwu and representative of Mazars Ojike & Partners, Miss Ngozika Onu at the event.

 

By Favour Nnabugwu

 

 

Royal Exchange Plc has recorded an underwriting profit rose by 22 per cent to N11.12 billion as a group

The group’s profit before tax appreciated by 13 per cent or N1.1 billion to N130 million when compared to a loss before tax of N1 billion recorded in 2019.

The Chairman of the group, Mr Kenny Odogwu, has said. at the 52nd Annual General Meeting (AGM) in Lagos

Odogwu said group-wide total gross written premium of N15.3 billion in 2020 while adding that gross written premium grew by eight per cent from N14.21 billion recorded in 2019.

He submitted that the total clams settled stood at N3 billion at the end of the year under review as against N3.18 billion paid to policyholders in 2019, translating to a positive variance of 16 per cent and increase in claims expenses of about N509 million.

He maintained that across the group, cost containment was effective throughout year 2020, as operating expenses reduced to N2.2 billion in 2020 when compared to N2.4 billion spent in 2019, indicating four per cent drop and N85 million savings and also translated to 23 per cent and N688 million saving as against corresponding year 2020 budgeted amount.

Speaking on the future of the company, the Chairman said the board and management are confident about the future of the company.

He assured they are doing everything within their power to ensure the future of the company is brighter and better.

Explaining the company’s efforts to recapitalise, he said while the Royal Exchange General has concluded its recapitalisation process, they are on course to conclude that of life business.

On technology he said: “The new world class software we acquired and deployed to our insurance subsidiaries has started yielding positive fruits by making our workforce seamless.”

On the company’s digitalisation plan he said: “In order to remain competitive as a fledging insurance superpower and in line with our strategic implementation of our digitalization plan, the newly upgraded website has many features including call-to- action/sale capabilities which is Customer focus.

“Clients can now log in and purchase insurance cover online and our call-centers too is now up and running with 24- hour facilities to attend to enquires.”

Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) Sir. Sunny Nwosu commended the company for its outstanding performance in 2020.

According to him despite the difficulty experienced during the COVID-19 the company was able to present a better financial indices.

However he implored the company to support the shareholders with dividend payout, adding that things are tough in the country and the minority shareholders needs to be put into consideration when crucial issue such as dividend is being discussed

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