Royal Exchange reports 19% rise in profits in H1 2017.
Nigeria’s premier insurance and financial services group, Royal Exchange Plc, has said its Profit After Tax (PAT) increased by 19 per cent from N171.14million achieved in half year (H1) 2016 to N203.3million recorded in H1 2017.
The company also confirmed an increase in its Gross Written Premium (GWP) to N9.37billion in the period under consideration, which represents an increase of 11 per cent over the H1’16, which stood at N8.43billion.
The H1’17 Gross Premium Income witnessed a moderate growth of 6.3 per cent over the H1’16 figures, at N6.86billion for H1’17, compared to the N6.46billion generated a year ago.
Net Premium Income for the period amounted to N4.72billion, representing a marginal growth of 2.5 per cent over H1 2016, which stood at N4.60billion. Total Net Claims paid for the period under review amounted to N1.76billion, a decrease of 10 per cent year-on-year, which was N1.95billion. This feat was achieved as a result of stringent underwriting policies implemented throughout the company in the period under review.
Commenting on the results, the Group Managing Director, Royal Exchange, 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, amongst others, we have been able to achieve moderate growth. And the Board and Management of the company are definitely 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 as evidenced by our stellar results and those of other firms in the Nigerian Stock Market, there is renewed optimism in the Nigerian economy.
Royal Exchange Plc is hopeful that by focusing our efforts on aggressive sales of our various products and services, including strong presence and participation in the retail sales space and the continued optimisation of our operating costs, we will be able to surpass our financial targets set for ourselves at the beginning of the year.”
On the state of the insurance industry, Muktari argued that while government is the biggest spender in the Nigerian economy, it is important that the private sector sees the insurance industry as partners in progress by buying policies. This is to ensure not only business continuity, but also peace of mind in the event of any business disruption or random event happens.
He also noted that increased awareness on the usefulness and benefits of insurance by the media will help increase insurance penetration, and wider patronage of the various insurance products in Nigeria.
In recognition of the efforts being undertaken to reposition the company, Royal Exchange recently won two awards from BusinessToday Online, as the 2016 Insurance Company of the Year, while Muktari was also adjudged the 2016 Insurance Man of the Year.
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