As part of efforts to improve shareholders earnings and attain market leadership position in its areas of operations, Royal Exchange Plc is presently streamlining major components of its businesses. Chairman of the company Kenneth Ezeanwani disclosed this to shareholders at its 47 Annual General Meeting Lagos.
According to him this will reposition the company as not only a major industry player but as a potential game changer. He explained that the board of directors could not recommend the payment of dividend for the year ended December 31, 2015 due to the International Financial Reporting Standard (IFRS) induced reserves they made.
Commenting on the financial performance the Group Managing Director Alhaji Auwalu Muktari explained that the company top line rose by 10 percent from N9.87 billion in 2014 to N10.81 billion that was reported in 2015. While results from core operating activities dipped with underwriting profit declining by 32 percent from N2.32 billion in the corresponding year to N1.57 billion in 2015 as a result of provisioning of N1.16 billion made in respect to their life insurance contract liabilities.
At the subsidiaries level, he said the bottom line performance was down due to a very volatile business operating environment. Pointing out that the board and management are determined to reverse the trend especially for its life business which was a major drag on its profitability.
Muktari noted that our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace. The focus would be on achieving long-term sustainable growth for our shareholders through the broadening of our revenue base, improving services delivery support systems and at same time keeping a lid on our group wide cost.
Meanwhile Royal Exchange Plc in its half year report for the period ended June 30, 2016 posted N8.43 billion an increase of 34 percent which is above N6.28 billion in 2015. The company gross premium income also grew by 17 per cent to N6.46 billion in the second quarter from N5.50 billion in the second half of 2015.
Net premium income grew by five per cent to N4.34 billion in the period under review from N4.12 billion in the second quarter of last year. The firm total net claims for the period under review, it added, increased by 42 per cent to N1.95 billion from N1.37 billion.