ROYAL EXCHANGE EARNS N9B INCOME

Royal Exchange Plc generated a gross premium income of N9.08 billion in 2013 in comparison with N7.61 billion recorded in 2012, representing a growth of 19 per cent, the Group Chairman, Kenneth Odogwu, has said.

While addressing shareholders during the company’s 45th Annual General Meeting in Lagos recently, Odogwu said that the total claims settled in 2013 amounted to N2.48 billion as against N1.63 billion reported in 2012, signaling an increase of 52 per cent.

He also stated that the underwriting expenses increased by 3 per cent from N2.13 billion in 2012 to N2.20 billion in 2013, adding that these translated into net income before overhead expenses of N3.40 billion, as against N2.67 billion in 2012.

According to him, the group achieved a profit before taxation of N828 million, 18 per cent higher than the N708 million recorded in 2012, while the profit after taxation increased by 41 per cent from N573 million in 2012 to N806 million in 2013.

Odogwu stated the company’s management expenses rose to N2.53 billion in 2013 from N1.98 billion in 2012. He attributed the rise to branch expansion, retail business development and investments in e-business and information technology.

Considering the impressive results achieved by the organisation during the outgone year, a dividend of 5 kobo per 50 kobo share which was recommended by the company’s board of directors was approved by the shareholders at the yearly meeting.

The Royal Exchange boss also disclosed that the company was working out measures to raise its capital to enable it improve performance.

Odogwu assured that Royal Exchange is bracing up to take advantage of identified opportunities in the economy so as to grow its market share.

He maintained “our three year transformation plan is on course and has contributed immensely in strengthening our performance parameters, developing our retail businesses, reinforcing our asset management franchise and aligning our shared-services objectives.”