By Matthew Don
Royal Exchange Plc has reported increased expenses by its management despite the group’s full year loss after taxation (LAT) of N980.2million. Royal Exchange is one of the leading insurance and financial services group in Nigeria, and had in 2015 financial year reported N1.298billion loss. The company’s audited financial statement for the year ended December 31, 2016 submitted at the Nigerian Stock Exchange (NSE) shows that management expenses rose to N3.46billion from N3.27billion in 2015.
The Kobo stock is listed under the other financial institutions subsector of the Nigerian Stock Exchange, and has a market capitalisation of N2.572billion and shares outstanding of 5,145,370,074 units.
Royal Exchange Plc started operations in 1921, following the recapitalisation exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries.
The subsidiaries are: Royal Exchange General Insurance Company Limited (Non-Life Insurance Services); Royal Exchange Prudential Life Plc (Life Assurance Services); Royal Exchange Finance and Asset Management Limited (Financial Advisory Services); Royal Exchange Healthcare Limited (HMO and Health Insurance); and Royal Exchange Microfinance Bank Limited (Banking Services).
In the year under review, Royal Exchange Plc’s gross premium income rose to N12.43billion from N10.80billion in 2015. Net underwriting income was higher at N8.64billion from N8.41billion in 2015.
Total underwriting expenses decreased to N6.72billion from a high of N6.84billion in 2015. Underwriting profit increased to N1.92billion from N1.56billion in 2015.