Royal Exchange reports 167% increase in profit to N420m


By Kayode Tokede

Royal Exchange Plc has released its unaudited financial statements for the half year (H1) ended June 30,  2020 with profit after taxation of N420.076 million a 167 per cent increase from N631.462 million loss in the same period of 2019.

The group result released on the Nigerian Stock Exchange (NSE) on Thursday showed that earned income fell by two per cent to N7.825 billion from N7.990 billion in H1 2019.

Royal Exchange had earlier released its unaudited financial statements for the first quarter ended 31 March, 2020 with profit after taxation of N25.412 million a 114per cent growth from N187.556 million loss in the same period of 2019. Earned income rose by 6% to N3.779 billion from N3.554 billion in Q1 2019.

Moreover, its consolidated annual report and financial statements for the year ended  December 31, 2019 showed a loss after taxation of N1.313 billion down from N160 million loss in the same period of 2018

The group result showed that total assets declined to N32.107 billion from N35.594 billion while shareholders fund/total equity also dropped to N3.983 billion from N5.149 billion.

The company had declared a Gross Written Premium of N10.58 billion for the financial year ended Dec. 31, 2019.

Speaking at the company’s Annual General Meeting (AGM) in Lagos recently, the firm’s Managing Director/Chief Executive Officer, Mr. Benjamin Agili, said that despite the harsh environmental condition, the company was able to grow its top-line figures and maintain its leadership in key corporate accounts.

Agili noted that the firm also participated in large-ticket insurance transactions, its renewed focus on the retail markets.

According to him, the retail markets shall be a growth driver in the future and agriculture insurance, which is beginning to gain traction in the insurance market in Nigeria.

“We are expanding our strategic focus to three main areas, namely: Digital Insurance, Retail Insurance Market and Agriculture Insurance as farming is a key economic activity in Nigeria,’’ he said.

In line with NAICOM’s directive, the managing director said the company’s revised recapitalisation guidelines is poised to surpass the directive, as indicated in its approved 2019 financials.

Agili said plans were in top gear to ensure that the company was well capitalised and able to take advantages of the opportunities that will present itself in the insurance market in Nigeria.

“REGIC will continue to reinvent itself to be more responsive to the needs of the customer, offering them the products and services they need, in ways that they want.

“We are adopting a customer-centric approach to all our businesses to ensure we are competitive in the market.

Royal Exchange was incorporated as a private limited liability Company on December 29, 1969, converted to a public limited liability company on July 15, 1989 and was listed on the Nigerian Stock Exchange on December 3, 1990.