Royal Exchange 45th Annual General Meeting

Shareholders of Royal Exchange Plc on Wednesday applauded the board of director for its outstanding performance for the financial year 2013.

Speaking on behalf of the Shareholders, the President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy, noted that the impressive performance in group profit and gross written premium indicates that the company has done very well in the year under review.

Speaking further another shareholder, Mr. William Opara, of Independent Shareholders Association of Nigeria (ISAN),was of the opinion  that the company performance shows that the company has truly re-positioned for profitability.

He added that despite the low level of insurance awareness among Nigerians  and difficulty involve in doing business in the country the company posted good profit and went ahead to pay dividend.

Royal Exchange group financial result which was presented to the Nigerian Stock Exchange few weeks ago revealed that profit before taxation grew by 18 percent from N708 million recorded in 2012 to N828 million, while gross premium rose to  N9.08 billion in 2013 when compared with  N7.61 billion it recorded in same period of 2012, this indicating an increase  of 19 percent.

Under the year under review the firm claims settlement appreciated by 52 per cent from N1.63billion it paid in 2012 to N2.48 billion it paid in the year 2013.

Underwriting expenses grew by three per cent from N2.13 billion in the corresponding year 2012 to N2.20 billion in 2013, translating into net income before overhead expenses of N3.40 billion, as against N2.67 billion in 2012.

The company’s management expenses rose to N2.53 billion in 2013 as against N1.98 billion in 2012, which he attributed to the rise to branch expansion; retail business development and investments in e-business and information technology.

Following an impressive performance the broad recommended a dividend pay-out of five kobo per 50kobo ordinary shares to members for the year ended December 2013.

Speaking further on its financial performance, Group Managing Director/CEO of the company, Mr. Chike Mokwunye, noted that the company’s philosophy of delivering value to its shareholders without compromising on service standard remains sustainable.

This he said was reflective on its performance metrics in 2013 as earning per share of the come rose by 45 percent from 11kobo in the corresponding year of 2012 to16kobo at the close of business in December 31, 2013.

On future of the company, he said that the potential for further growth in insurance penetration level locally remain buoyant due to the continuing reform being undertaken  by National Insurance Commission(NAICOM).

He affirmed that the “group is now well positioned to drive businesses and extract value across the diverse product lines supported by our superior human capital and extensive distribution network”, he said.

“With the on-going implementation of our three-year strategic plan, we are confident of the prospects of regaining industry leadership and market dominance in coming years”, he assured.