Royal Exchange Plc, has announced that it recorded a Gross Written Premium (GWP) of N14.7 billion, representing an increase of 15 per cent for the 2018 financial year as against N12.8 billion in 2017.
This is even as the firm’s Total Assets witnessed a growth of 6.74 per cent, from N33.2billion in 2017 to N35.53 billion as at December 31, 2018.
The Net Premium Income for the period under review amounted to N9.1billion which is a 29.7 per cent growth over the 2018 figure, while net underwriting profit amounted to N9.73 billion in the financial year under review.
The Chairman of the Underwriting firm, Kenny E. Odogwu, disclosed this at the company’s Annual General Meeting held in Lagos recently.
According to Odogwu, despite the very harsh operating environment, the underwriting firm was able to deliver a better result in 2018 against the previous years and this was achieved through cost optimization initiatives, innovation in key categories and extensive retail market expansion as well as by participating in large-ticket financial transactions.
“Royal Exchange envisions a situation where the retail insurance market should be able to contribute between 50-60 per cent of our revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country.
“In the years to come, Royal Exchange will 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 getting thinner, yearly”.
He further added that with the recent approval from the National Insurance Commission to undertake agricultural insurance, the company has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance with that sector of the economy and in the couple of months, revenues will start coming in from there.
He also noted that streamlining major components of the group’s businesses is a continuous exercise especially in the areas of service delivery, processes and operations to deliver superior returns in the medium term to shareholders through digital transformation.
“The group has recently acquired a new insurance software and this will go a long way to enhance our operations and enable us provide fast and efficient services to our customers. This will further enhance our on-going transformation processing involving the revamping of our mobile banking app for our Microfinance Bank, Internet Banking and USSD Banking, procurement of a USSD code for the sale of all our subsidiaries’ products…”