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| From left: Sheila Ezeuko, Company Secretary; Kenneth Odogwu , Chairman, and Chike Mokwunye, GMD, all of Royal Exchange Plc , during the 46th annual general meeting of the company in Lagos. |
Chuks Udo Okonta
Royal Exchange Plc generated gross written premium of N9.43 billion in 2014 as against N9.08 billion recorded in 2013, its Chairman, Kenneth Odogun, has said.
He disclosed this today at the company's annual general meeting in Lagos, adding that the group achieved a profit before tax of N315 million, 62 per cent lower than the N828 million achieved in 2013.
He said claims expense for the year amounted to N2.43 billion in comparison with N2.48 billion reported in 2013, stressing that underwriting expenses increased by 25 per cent from N2.20 billion in 2013 to N2.74 billion in 2014 translating into net income before overhead expenses of N3.37 billion, in close proximity with 2013 value of N3.40 billion.
Odogun said the management expenses were N3.09 billion in 2014 as against N2.53 in 2013.
The Chairman said the company's plans for this year, is on course notwithstanding the vulnerabilities imminent in the economy.
The company paid dividend of 2k per 50k ordinary share to its shareholders.
The low profit Odogwu said was as result of the rise in management expenses which rose to N3.09 billion in 2014 compared with N2.53 billion in 2013. This was attributable to on-going branch expansion, retail business development and investment in e-business and information technology, he said.
On the future prospect, he said “We also see significant growth in Takaful and micro-insurance services in the retail insurance space, as a means of boosting insurance penetration and driving financial inclusion amongst the lower income class”.
According to the chairman, emphasis will be on channels and product innovation to reach a large portion of the economically disadvantaged section of the 170 million populations.
“The explosion of on-line retail shopping platforms, telecommunications and microfinance banking are already providing alternative sales distribution channels to stretch retail insurance services to fingertips of the citizens.”
As always, Royal Exchange stays abreast with many of the initiatives mentioned in the quest to grow market share and attain leadership position.
“Our three year transformation plan is a testament to the fact that we are and have always been on course. The group is presently streamlining major components of her businesses, service delivery, processes and operations to deliver superior returns in the medium term to our shareholders. This makes us believe we took the right step, in the right direction with the right strategy.
Chike Mokwunye, Group Managing Director (GMD) said the performance of Royal Exchange Group in 2014 was a show of resilience. “At group level, we ran a two prong business growth approach focused on sustaining old businesses and at the same time acquiring new direct businesses.”
Mokwunye stated the Company also diversified its revenue base by deepening its tentacles in traditional financial services markets and concurrently branching out into frontier market segments.
Mokwunye said moving forward, the Company wish to reassure its shareholders that there would be more stringent cost monitoring measures put in place to in the forthcoming year to once again improve efficiency levels. We also believe the current steps undertaken for expansion would translate to improved revenue growth in the medium term, the GMD assured.
The low profit Odogwu said was as result of the rise in management expenses which rose to N3.09 billion in 2014 compared with N2.53 billion in 2013. This was attributable to on-going branch expansion, retail business development and investment in e-business and information technology, he said.
On the future prospect, he said “We also see significant growth in Takaful and micro-insurance services in the retail insurance space, as a means of boosting insurance penetration and driving financial inclusion amongst the lower income class”.
According to the chairman, emphasis will be on channels and product innovation to reach a large portion of the economically disadvantaged section of the 170 million populations.
“The explosion of on-line retail shopping platforms, telecommunications and microfinance banking are already providing alternative sales distribution channels to stretch retail insurance services to fingertips of the citizens.”
As always, Royal Exchange stays abreast with many of the initiatives mentioned in the quest to grow market share and attain leadership position.
“Our three year transformation plan is a testament to the fact that we are and have always been on course. The group is presently streamlining major components of her businesses, service delivery, processes and operations to deliver superior returns in the medium term to our shareholders. This makes us believe we took the right step, in the right direction with the right strategy.
Chike Mokwunye, Group Managing Director (GMD) said the performance of Royal Exchange Group in 2014 was a show of resilience. “At group level, we ran a two prong business growth approach focused on sustaining old businesses and at the same time acquiring new direct businesses.”
Mokwunye stated the Company also diversified its revenue base by deepening its tentacles in traditional financial services markets and concurrently branching out into frontier market segments.
Mokwunye said moving forward, the Company wish to reassure its shareholders that there would be more stringent cost monitoring measures put in place to in the forthcoming year to once again improve efficiency levels. We also believe the current steps undertaken for expansion would translate to improved revenue growth in the medium term, the GMD assured.
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