Royal Exchange Plc yesterday assured stakeholders of better performance given the various strategies being executed. The Group Managing Director of Royal Exchange Plc, Alhaji Auwalu Muktari, gave the assurance the presenting of the company’s ‘Facts behind the figures’ at the Nigerian Stock Exchange(NSE) in Lagos.
According to him, 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, the board and management of the company are definitely optimistic for good results at the end of the year.
He disclosed that the company is having a strong focus on micro-financial services in addition to strong growth on corporate businesses, while also putting a strong emphasis on building and using digital innovation as a core tool to reach its customers and conduct back office operations.
“The group is developing solutions that aim to harness the power of the social media efficient distribution channel. The company is implementing a revamped supply-chain capabilities that will enhance efficient delivery of products and services. The company is improving its efficiency across the organisation by leveraging on cost discipline, astute capital allocation/investments and deployment of operational know-how,†he said.
Speaking on the financial performance of the company, Muktari said the Royal Exchange Group registered a top-line annual growth rate of 11 per cent in half year(H1) ended June 30, 2017.
“This represents N936 million in absolute terms. This was supported by the 21per cent growth rate achieved by the Royal Exchange General Insurance Co. Limited(REGIC) and accentuated by 44 per cent growth rate achieved by the Royal Exchange Healthcare Ltd (HMO).
The group’s profit before tax (PBT) increased by 19 per cent which represents N47million and Profit after tax(PAT) increased by 19 per cent year-on-year (i.e. N203million increase from H1’16). Again, the major driver for this growth is REGIC with PAT of 283 per cent during the period under consideration. Also, Royal Exchange Healthcare Ltd registered a PAT growth of 114 per cent as well as Royal Exchange Finance & Asset management Ltd whose PAT grew by 105 per cent,†he said.
Commenting on the state of the insurance industry in Nigeria, Muktari said that while government is the biggest spender in the Nigerian economy, it is important that the private sector sees the insurance industry as partners in their progress by taking out policies to ensure not only business continuity, but also peace of mind in the event of any business disruption or random event happens. He added, however, that increased awareness on the usefulness and benefits of insurance by the media will help increase insurance penetration and wider patronage of the various insurance products in Nigeria.
