Royal Exchange promises dividend this year, reports profit
Royal Exchange Plc says all things being equal, it will be declaring dividend to its shareholders this year.
The insurer assured stakeholders that it was overhauling its structure to put the company on a geometric growth pedestal, adding that the intended result would be a huge improvement from its part stance.
This assurance was given by the company’s Chairman, Mr. Kenny Odogwu, at Royal Exchange Facts Behind the Figure ceremony held at the Nigerian Stock Exchange in Lagos on Thursday.
The insurer also announced that its profit after tax increased by 19 per cent from N171.14m achieved in the first half of 2016 to N203.3m reported in H1 2017
The company also announced an increase in its gross written premium in the sum of N9.37bn in the period under consideration, which represents an increase of 11 per cent over the H1 2016, which stood at N8.43bn.
Its H1 2017 gross premium income witnessed a moderate growth of 6.3 per cent over the H1 2016 figures, as it closed at N6.86bn, compared to the N6.46bn reported in 2016.
Net premium income for the period stood at N4.72bn, representing a marginal growth of 2.5 per cent over that of half year 2016, which stood at N4.60bn. Total net claims paid for the period under review amounted to N1.76bn, which is a decrease of 10 per cent from half year 2016, which was N1.95bn. The firm attributed this to stringent underwriting policies implemented throughout the company in the period under review.
Speaking at the event, the Group Managing Director of the company, Alhaji Auwalu Muktari, said, “By focusing on the growth objectives set forth at the beginning of the year, which included an increased focus on the retail and corporate markets, among others, we have been able to achieve moderate growth and the board and management of the company are optimistic for the second half of the year.”
According to Muktari, the beginning of the 2017 financial year witnessed difficulties in the Nigerian economy, but with the improving performance of most quoted firms, there is renewed optimism in the economy.
Royal Exchange, he stated, remained hopeful that by focusing its efforts on aggressive sales of its various products and services, including strong presence and participation in the retail sales space and the continued optimisation of operating costs, it will be able to surpass the financial targets set for itself at the beginning of the year.
He noted that the company was working hard to realign its unproductive assets and make them productive given its renewed desire to pay dividend and grow the business.
Muktar also said the company was looking at creating two more subsidiaries in 2018.
On the state of the insurance industry in Nigeria, he noted that while government was the biggest spender in the Nigerian economy, it is important that the private sector saw the insurance industry as partners in their progress by taking out policies to ensure not only business continuity, but also peace of mind in the event of any business disruption among other exigencies.