By LOVETH AZODO, Lagos

The Chairman, Royal Exchange plc, Mr. Kenny E. Odoqwu has announced that the company for the year 2018 recorded gross written premium of N14.7billion representing an increase of 15%, when compared to the figure of 2017, which stood at N12.8billion.

Odoqwu who announced the company’s result for 2018 Today at its Annual General Meeting held in Lagos also mentioned that the company was one of the 26 companies that received the approval of the National Insurance Commission (NAICOM) on its recapitalization work plan.

He said, Net Premium Income for the period amounted to N9.1billion which represents 29.7 percent growth over the 2018 figure, while net underwriting profit amounted to N9.73billion in the financial year under review.

“Underwriting profit went up to N3.67billion in the 2018 financial year, up from N1.05billion in 2017, while Net Income stood at N4.35billion, from the corresponding figure of N2.4billion in 2017.”

“A further analysis of the operating results showed that the Total Assets of the group witnessed a growth of 6.74percent, from N33.2billion in 2017 to N35.53billion as at December 31, 2018.”

According to Odogwu, “Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50-60 percent of our revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country.”

Furthermore, he stated that with the recent approval from the National Insurance Commission to undertake agricultural insurance, the company has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance with that sector of the economy adding that in the couple of months, revenues will start coming in from there.

The chairman who reiterated the company’s goal stated “For the future that we behold, our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace”.

Speaking on its recapitalization plan Odoqwu said “In line with recent regulatory announcements, we are already making arrangements to shore up the capital of the subsidiaries in order to meet up with the new NAICOM requirements and we are more than confident of the future of the group, despite the hostile business environment.”

It would be recalled that in an update on recapitalization of Insurers and Reinsurers the National Insurance Commission (NAICOM) has granted approvals to 26 insurance companies to proceed with their respective recapitalization work plan presented to Commission while 17 companies were corrected and were advised to resubmit their new plans using paid-up capital and not shareholders funds.