Royal Exchange Group Makes N623.94m Profit

Read Time:3 Minute, 55 Second

Royal Exchange Nigeria Plc, the pioneer insurance company in the country has reversed the N49.47 million loss it suffered in the previous financial year, coasting home with a N623.94 million profit from its operations last year ended December 31, 2012.

Investors’ stake in the company was grown marginally by 3.57 per cent from N7.85 billion in the previous year ended December 31, 2011 to N8.13 billion last year.

This information formed part of the contents of the company’s 2012 Annual Report and Accounts approved by shareholders during the 44th Annual General Meeting of the company in Lagos recently.

Gross premium written by the company last year was Nd7.61 billion, an 11.58 per cent increase over the figure of the previous year which was N6.82 billion.

Gross premium income recorded by the insurer was 7.12 billion, which translates to a 9.88 per cent improvement on the N6.48 billion it raked in the previous year.

Also, net premium income raked in by the firm in the same period peaked at N5.37 billion, a 14.74 per cent increase over the N4.68 billion recorded in 2011

Last year, the company earned fees and commissions to the tune of N195.97 million, a 50.28 per cent shortfall from the N394.13 million recorded in the previous year.

Insurance claims and benefits incurred by Royal Exchange last year totaled N2.25 billion, a 19.64 per cent reduction from the N2.80 billion incurred in the 2011 financial year. This is an indication of better underwriting performance and improvement in stakeholders’ expectations.

Within the same period, the company’s underwriting profit peaked at N1.80 billion, a 13.92 per cent improvement on the N1.58 billion it made in 2011.

Investment income earned by the firm last year peaked at N642.03 million, 35.10 per cent increase over the 2011 figure that was N475.22 million. Also, net interest income raked in by the group last year was N110.33 million, a 379.20 per cent increase over the N23 million recorded in the previous year.

Profit before tax recorded by the non-life insurer last year was N743.21 million, a 253.19 per cent increase when compared with the N210.43 million profit of the previous year.

In the same manner, profit after tax recorded by Royal Exchange peaked at N623.94 million, a whopping 1,361.25 per cent improvement on the N49.47 million loss it suffered in the previous year.

The insurer group within the year under consideration maintained its share capital and share premium at N2.57 billion and N2.69 billion respectively and raised its contingency reserve to the tune of 37.52 per cent from N525.19 million recorded as at end of 2011 operations to N722.23 million last year.

The firm’s retained earnings rose by 9.31 per cent, going up from N2.47 billion in 2011 to N2.70 billion last year. It, however, drew down other components of its equity by as much as 59.86 per cent from N87.77 million in 2011 to N52.54 million deficit last year.

Total equity attributable to shareholders in the company was however grown to the tune of 3.57 per cent last year, having gone up from N7.85 billion in the previous year to N8.13 billion last year.

The company also increased the balance in its insurance contract liabilities to the tune of 11.16 per cent from N4.39 billion in 2011 to N4.88 billion in 2012.

Royal Exchange also last year raised its investments in properties by 3.08 per cent from N6.17 billion in the previous year to N6.36 billion last year and reduced its reinsurance assets by 0.63 per cent from N1.59 billion in 2011 to N1.58 billion in 2012.

Financial assets held by the firm rose from N2.79 billion in 2011 to N2.94 billion last year just its investment in property, plant and equipment was also reduced from N1.44 billion in the previous year to N1.38 billion last year.

The firm’s total assets was grown to the tune of 5.09 per cent from N15.51 billion as at the end of 2011 accounting period to N16.30 billion last year. Earnings per share by the insurance group rose by 1,100 per cent, reversing the 0.01 kobo loss per share of 2011 to 12 kobo profit per share last year.