By Nse Anthony-Uko,
(Sundiata Finance) – Royal Exchange Plc said it generated a Gross Written Premium (GPW) of N12.5 billion from its business activities in its 2016 financial year.
This figure represents an increase of 16 per cent over the figure of 2015, which stood at N10.8billion.
The Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, while speaking on the financial results, said the Net Premium Income of the firm for the period amounted to N8.2 billion, with a minimal growth over that of Year 2015, which stood at N8.1 billion, while underwriting profit witnessed a 19 per cent increase from N1.6billion in 2015 to N1.9billion in the financial year under review.
A further analysis of the operating results showed that the Total Assets of the group witnessed a growth of 20 per cent, from N26.5 billion in 2015 to N31.7billion as at December 31, 2016.
Net claims paid for the period under review amounted to N3.6billion, an increase of 20 per cent from 2015, which was N3.0billon. Net Income before management expenses grew by 13 per cent to N2.7billion, up from N2.4billion in 2015
Muktari stated that despite the very harsh operating environment in the year under review, the group was able to grow its top-line figures by participating in large-ticket financial transactions, as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.
According to Muktari, “Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50-60 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.”
Royal Exchange, he pointed out, will in the years to come, continue to be an aggressive player in the retail market in the country and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are dwindling, yearly.