Royal Exchange total net claims drops by 10 % in H1 2017
….As Profit rises by 19%
Royal Exchange Insurance Plc has recorded a 10 per cent drop in net claims for the period ended June 30 2017.
This was contained in the company’s first half 2017 result released recently by the Nigerian Stock Exchange.
The result, which showed growth in key indices, just as challenges persist showed that total Net Claims paid for the period under review, amounted to N1.76 billion, a decrease of 10 per cent from N1.95bn posted in 2016 H1.
This feat was achieved as a result of stringent underwriting policies implemented throughout the company in the period under review.
Group Managing Director of Royal Exchange Plc. Auwalu Muktari, said, “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.”
According to Muktari, “the beginning of the 2017 financial year witnessed difficulties in the Nigerian economy, but as evidenced by our stellar results and those of other firms in the Nigerian Stock Market, there is renewed optimism in the Nigerian economy. Royal Exchange Plc is hopeful that by focusing our efforts on aggressive sales of our various products and services, including strong presence and participation in the retail sales space and the continued optimization of our operating costs, we will be able to surpass our financial targets set for ourselves at the beginning of the year.”
The company’s hi result further showed that Profit after Tax (PAT) increased by 19 per cent from N171.14m achieved in the first half of 2016 to N203.3m recorded in the first half of 2017.
The company also announced an increase in its Gross Written Premium in the sum of N9.37bn in the period under consideration, which represents an increase of 11 per cent over the same period in 2016, which stood at N8.43bn.
During the first half of 2017, Gross Premium Income witnessed a moderate growth of 6.3 per cent to N6.86bn from N6.46 in 2016. Net Premium Income for the period amounted to N4.72bn, representing a marginal growth of 2.5 per cent over that of half year 2016, which stood at N4.60bn.
Bonny Amadi
