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Royal Exchange grosses N7.61bn in premium income

By BusinessNews Staff on December 8, 2013

Royal Exchange Plc generated a gross written premium of N7.61 billion in 2012 financial year as against N6.82 billion it recorded in 2012 representing an increase of 11.58 percent.

The chairman of Royal Exchange Plc, Mr. Keneth Ezeanwani Odogwu, stated this while presenting the company’s 2012 annual accounts to the shareholders at the company’s annual general meeting held in Lagos.
He said: “The group achieved a profit before tax of N743 million for the year. This result was credited to marked improvements in the performances of our subsidiaries, except for Royal Exchange Prudential Life Plc which posted a loss of N223 million. The loss recorded was due largely to provisioning made on premium receivables from group life policies taken out by federal government. We expect payments on these receivables in 2013 which will impact positively on the company’s profitability for that year.”
Mr Odogwu also said claims expenses during the year amounted to N1.63 billion similar to N1.64 billion spent in 2011.
However, in relative terms, he said, the claims ratio dropped from 35 percent in 2011 to 30 percent in 2012.
Underwritten expenses increased by 15.13 percent from N1.85 billion in 2011 to N2.13 billion in 2012, he said, adding that “this translated into net income before overhead expenses of N3.54 billion, as against N3.17 billion of 2011, an increase of 11.91 percent.”
He said investment income increased significantly by 35.10 percent from N475.21 million in 2011 to N642.02 million in 2012.
“Management expenses were N1.90 billion in comparison to N2.16 billion recorded in 2011 showing a decrease of 11.73 percent. This reduction in overheads was due to the convergence of stringent cost control measures deployed group-wide to enhance our operational efficiency without impacting negatively on productivity,” he noted.

[The Nation]

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