DIRECTORS of Royal Exchange Plc are expected to meet today in an emergency meeting to consider the group’s financial statement for the immediate past business year.
At the emergency meeting, directors of the insurance-led investment group are expected to receive and consider the unaudited financial statement for the year ended December 31, 2019.
Under the rulesoft the Nigerian Stock Exchange (NSE), Royal Exchange is required to submit its audited financial statement and accounts, not later than 90 calendar days after the expiration of its business year. The deadline for submission is thus March 30, 2020.
The interim report and accounts of the group for the first quarter ended March 31, 2019 had shown a general decline in performance. Gross premium written dropped by 27 per cent to N5.6 billion in first quarter 2019 as against N7.68 billion recorded in first quarter 2018. Underwriting income declined by 12 per cent from N2.7 billion to N2.38 billion. Underwriting profit dropped by 55 per cent to N563.37 million in first quarter 2019 compared with N1.23 billion recorded in corresponding period of 2018.
The group recorded a pre-tax loss of N142.09 million in first quarter 2019 as against pre-tax profit of N572,40 million in first quarter 2018. After taxes, net loss rose to N187.56 million in first quarter 2019 as against net profit of N389.9 million in first quarter 2018. Loss per share thus stood at 4.0 kobo in first quarter 2019 as against earnings per share of 8.0 kobo in first quarter 2018.
An investment fund set up by the German government recently acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange. The investment fund- InsuResilience Investment Fund (IIF) was set up on behalf of German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.
The proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.
Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.
