Royal Exchange gross premium soars by 14 per cent
Royal Exchange Insurance Plc. has announced a gross premium written of N10.79 billion within the financial year ended 31st December, 2015.
This indicated a 14 per cent growth rate when compared with the N9.4 billion written the preceding period of 2014.
The company net claims expenses for the year amounted to N3.04 billion compared to N2.43 billion reported in 2014.
This is contained in the firm’s annual report and account unveiled at the company’s 47th annual general meeting held today in Lagos.
Addressing shareholders at the meeting, the Chairman, Royal Exchange, Mr Kenneth Odogwu stated:, ” In spite of the hostile operating environment experienced by the insurance sub-sector and financial services industry in general, Royal Exchange Group kept a tight rein on her business in 2015. During the year under review, your group generated a gross written premium of N10.79 billion”.
Underwritten expenses according to him decreased by four per cent from N2.74 billion in 2014 to N2.6 billion in the period under review while management expenses, he said stood at N3.2 billion in 2015 against 2014 figure of N3.07.
Odogwu however, noted that the group recorded a loss after tax of N897 million. This, he attributed largely to insurance contract liabilities, a provision made in accordance with the International Financial Reporting Standard (IFRS).
Also the Managing Director, Royal Exchange, Mr Auwalu Muktari opined that the firm made a nice outing within the period, ” the performance of Royal Exchange group in 2015 was good show of spirit of tenacity. At group level business retention levels were enhanced to enable us focus on our new business areas. Performance wise, our top line rose by 10 per cent year – on – year from N9.8 billion in 2014 to 10.8 billion in the period under review.
Though he stated that results from the core operating activities dipped with underwriting profit declining by 32 per cent from N2.32 billion in the comparable period of 2014 to N1.5 billion in 2015 following provision of N1.1 billion made in respect of its Life Insurance contract liabilities.