Royal Exchange to raise fresh fund from capital market
Royal Exchange Nigeria Plc has given assurance of sustaining value creation to its shareholders with recommencement of dividend payment starting with the prevailing financial year 2017.
Chairman of the company, Mr. Kenneth Odogwu disclosed this on Thursday, in Lagos, at The Nigerian Stock Exchange (NSE) during the presentation of facts behind the figures to market operators and other stakeholders.
The Royal Exchange chairman also discoed that the company is positioning to approach the capital market for fresh funds to boost its capital base, and take advantage of high ticket multi- sectorial transactions that guaranty favorable returns.
Odogwu said that for the 100 years the company has existed, it has sustained divided payment, but was interrupted in 2014, 2015 and 2016 financial years due to losses made by the company , occasioned by huge provisioning.
He said that based on strategic innovation and transformation embarked upon by the management and board of the company, he was repositioning the company for increased profitability and returns on investments to all stakeholders.
According to him, digital transformation, Agriculture insurance, which has been endorsed by NAICOM, with support from federal government and the world bank as well as opportunities in the Federal Government’s compulsory insurance policies.
In his address, the company’s Group Managing Director, Mr. Auwalu Muktari said that the company, as one of the two insurance companies to benefit from the deregulation of agriculture insurance in Nigeria, is positioned to take advantage of opportunities to boost the nation’s economy, increase agricultural produce, boost its bottom line and return value to shareholders.
He reiterated that since its last capital raising in 2006, the company has not raised fresh funds from the market, as its operations have been funded by internally generated income.
Muktari said that, the impact of transformation in Royal Exchange the company recorded profit after tax (PAT) of N203.3 million in the first half of 2017, representing 19 percent increase from N171.14m premium recorded by the company in the corresponding period in 2016.
Also, 11per cent increase was recorded in Gross Written Premium for the period from N8.43 billion in 2016 to N9.37bn in 2017.
“By focusing on the growth objectives set forth at the beginning of the year, which included an increased focus on the retail and corporate markets, amongst others, we have been able to achieve moderate growth and the board and management of the company are definitely optimistic for the second half of the year”, Muktari stated.
Earlier in his address, the NSE CEO, Mr. Oscar Onyema, lauded Royal exchange Plc for coming to the exchange to present its facts behind the figures.
Represented by Executive director, Market development, the NSE, Mr. Haruna Jalo, Onyema commended the company for recording profit in its Q2 2017.
Bonny Amadi
