Royal Exchange posts N13.8bn premium in 2017
ROYAL Exchange Plc said it recorded N13.8 billion gross written premium, GWP, for the year ended December 31st 2017, representing 10.4 percent increase from N12.5 billion recorded the previous year. The company also recorded N7.1 billion net premium income for the period, while the underwriting profit stood at N7.6 billion.
The total assets witnessed a marginal growth of five percent to N33.3 billion as at December 31, 2017 from N31.7 billion in 2016, while net claims paid for the period under review amounted to N3.4billion, a reduction of four percent compared to N3.6 billon claims settled in the previous year.
Commenting on the result, the Group Managing Director of the company, Alhaji Auwalu Muktari, said that despite the very harsh operating environment, the company was able to grow its figures by undertaking large-ticket transactions, as well as playing in the retail insurance market, which is expected to be a key growth driver in the years ahead.
According to him, “Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50 to 60 percent of our revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country.”
He added that with the recent approval from the National Insurance Commission, NAICOM, to undertake agricultural insurance, the company has entered into strategic alliances with various stakeholders in the agricultural space, while it is expected to start contributing to the company’s revenue in the next couple of months.
Mukhtari said: “Royal Exchange Plc, will continue to be an aggressive player in the retail market in Nigeria 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 getting thinner every year.”