Royal Exchange Plc has recorded a gross written premium income of N10.7 billion for the financial year ended December 31, 2015. This represents 14 per cent increase when compared with N9.7 billion gross premium achieved in the previous financial year.
The company, which recorded nine per cent growth of net premium income of N8.4 billion in 2014 as against N7.8 billion. The total assets also increased to N26.525 billion, up by two per cent from the preceding year.
However, total claims paid for the period under review amounted to N3 billion with an increase of 26 percent from 2014, figure at N2.4billon. The Group Managing Director of the company, Alhaji Auwalu Muktari, stated that despite the very harsh operating environment in the year under review, the group was able to grow its top-line figures by participating in large-ticket financial transactions, as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.
According to him, Royal Exchange Plc will in the years to come, 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 dwindling, yearly.
He noted that the bottom-line results of the group did not turn out as expected, due to increase in operational costs, branch expansion, acquisition of new business solutions to improve its internal business processes, as well as thin margins on investments.
“The company has implemented various cost optimization strategies and measures which shall guarantee profitability in both the current financial year and the years ahead, Muktari said.
Speaking further, he added that the group will be under some form of restructuring, to enable it streamline its operations and processes and make it more responsive to the changing needs and demands of its clientele.