Royal Exchange Announces 22% Growth in Gross Written Premium in 9 Months
Royal Exchange Plc, one of the leading insurance and financial services group in Nigeria, has announced a 22 percent growth in its Gross Written Premium (GWP) from its business activities in the first nine months of the 2016 financial year, from N8.87 billion achieved as at September 2015 to N10.82 billion as at 30th September, 2016.
The insurance group also stated that its Gross Premium Income witnessed an increase of 15percent over the corresponding period in 2015, with the 2016 amount standing at N9.38 billion, compared to N8.19 billion achieved the same period in 2015.
Net claims paid to Royal Exchange clients grew marginally by 4 percent from N2.43 billion to N2.52 billion for the third quarter.
Net Income for the period amounted to N2.67 billion, with a modest growth of 12 percent over that of 2015, which stood at N2.36 billion.
Profit Before Tax (PBT) grew to N274.60 million as at Q3, 2016 from N111.34 Million achieved in the corresponding period in 2015, resulting in a growth rate of 14 percent.
Speaking on the third quarter results which have been announced on the floor of the Nigerian Stock Exchange (NSE), Alhaji Auwalu Muktari, Group Managing Director, Royal Exchange Plc, stated that in spite of the economic recession, Royal Exchange was able to grow its business portfolio by focusing on the ever-growing retail insurance market as well as participating in large-ticket corporate transactions.
According to Muktari, Royal Exchange Plc witnessed growth along most of its performance indicators because the company focused more on its core business of insurance and implemented a cost optimization strategy across all the subsidiaries of the group, which resulted in profitability and growth across the Group.
He further added that the results recently released have shown that by focusing on the Group’s growth objectives set out at the beginning of the year, Royal Exchange will be able to continually grow its business portfolio and provide substantial returns to its shareholders”.
The Group Managing Director further opined that Royal Exchange shall continue to focus its efforts on aggressive sales of its various product and service offerings as well as sustain its cost optimization strategy with a view to meeting the Group’s 2016 forecast”.
Speaking further, he said that the Board and Management of the company are optimistic that the fourth quarter will also be a period of growth for the company, especially if the public sector (federal and state governments) are able to finalize the insurance of their assets.