Royal Exchange Group Records N806m Profit

Royal Exchange Nigeria Plc has recorded N806.28 million profit from its operations  for the  financial year ended December 31, 2013.

Investors’ stake in the company was grown marginally by 8.53 per cent from N8 .32 billion in the previous year ended December 31, 2012 to N9.03 billion last year.

This information formed part of the contents of the company’s 2013 annual report and accounts approved by shareholders during the 45th annual general meeting (AGM) of the company in Lagos recently.
Gross premium written by the company last year was N9.08 billion, a 19.32 per cent increase over the figure of the previous year which was N7.61 billion.

Gross premium income recorded by the group last year was N7.20 billion, which translates to a 1.12 per cent improvement on the N7.12 billion it raked in the previous year.
Net premium income raked in by the firm in the same period  stood  at N5.25 billion, a 2.23 per cent  decline  from the N5.37 billion recorded in 2012

Last year, the company earned fees and commissions to the tune of N331.40 million, a 69.11 per cent improvement on the N195.97 million recorded in the previous year.

Insurance claims and benefits incurred by Royal Exchange last year totalled N2.84 billion, a 26.22 per cent increase over the N2.25 billion incurred in the 2012 financial year.  This is indicates that stakeholders expectations were met and surpassed to that extent.

Net claims expenses incurred by the group at the end of last year was N2.48 billion as against the N1.63 billion incurred in the previous year, a 52.15 per cent increase.

Within the same period, the company’s underwriting profit  was  N899.72 million, a 50.12 per cent  decline l from the N1.80 billion it made in 2012.

Investment and other incomes  were  N398.23 million, down by  36.64 per cent from the 2012 figure of N628.56 million.  Also, net interest income raked in by the group last year was N162.17 million, a 46.99 per cent increase over the N110.33 million recorded in the previous year.

Profit before minimum tax and income was N828.21 million, a 17.80 per cent increase when compared with the N703.09 million it made in the previous year.

In the same manner, profit after taxation  was N806.28 million, a 40.64 per cent improvement on the N573.29 million profit it made in 2012.

The firm’s retained earnings rose by 10.71 per cent, from N2.80 billion in 2012 to N3.10 billion last year.  Also the group grew other components of its equity by 617.64 per cent, from N30.84 million in 2012 to N221.31 million last year.

Total equity attributable to shareholders in the company was grown by 8.53 per cent last year, having gone up from N8.32 billion in the previous year to N9.03 billion last year.

The company raised the balance in its insurance contract liabilities and investment contract liabilities to the tune of 42.83 per cent and 4.47 per cent respectively.  The former was raised from N4.88 billion in 2012 to N6.97 billion in 2013 and the latter was raised from N573.49 million in 2012 to N599.11 million in 2013.

Also, depositors’ fund being managed by the group rose marginally from N593.23 million in 2012 to N595.45 million last year.

Culled from thisdaylive.com