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Tag: Royal Exchange

  • Royal Exchange gets N1.56b new equity capital from shareholders

    Royal Exchange gets N1.56b new equity capital from shareholders

    • Rights issue records 75.8% subscription

    Royal Exchange Plc has raised N1.56 billion new equity funds from its shareholders in a major boost to the operations of the insurance holding group.

    The funds however represented three-quarters of the entire N2.06 billion sought by the group under the rights issue.

    Royal Exchange, which was pursuing a voluntary recapitalisation of its businesses, sought to raise N2.06 billion in new equity funds from existing shareholders through the issuance of 4.116 billion ordinary shares of 50 kobo each at 50 kobo per share.

    The rights issue was pre-allotted on the basis of four new ordinary shares of 50 kobo each for every five ordinary shares held as at the close of business on Monday, March 06, 2023.

    Regulatory filing showed that a total of 3.12 billion ordinary shares of 50 kobo each were picked up by shareholders at 50 kobo per share, representing a subscription level of 75.83 per cent.

    The newly issued shares have been listed at the Nigerian Exchange (NGX), marking the end of the rights issuing process.

    Read Also: Royal Exchange General Insurance makes key appointments

    With the listing of the additional shares from the rights issue, the total issued and fully paid up shares of Royal Exchange increased from 5.145 billion to 8.267 billion  ordinary shares of 50 kobo each.

    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.

  • Royal Exchange General Insurance makes key appointments

    Royal Exchange General Insurance makes key appointments

    Royal Exchange General Insurance Company (REGIC) has announced some appointments in its Management team. They are Mr. Sunny Uwagboi, the Executive Director (ED); Udoka Eze Martins, is the Regional Director, Abuja and North; Dr. Joyce Odiachi, Head, Technical Services; and Mr. Adeseye Ajibulu, Head, Claims and Technical Risk Management.

    Read Also: NDIC: deposit insurance key to financial system stability

    Managing Director/CEO, REGIC, Ebelechukwu Nwachukwu, said: “We are delighted to welcome these accomplished professionals to the REGIC family. Their collective expertise will undoubtedly contribute to the continued success and growth of our organisation.’’

  • Royal Exchange gets approval for N2.06b recapitalisation

    Royal Exchange gets approval for N2.06b recapitalisation

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has approved the plan by Royal Exchange to raise N2.06 billion in new equity funds from existing shareholders.

    Royal Exchange yesterday confirmed that SEC has given it the nod to sign off the offer documents for the rights issue, after which the offer will open around November 29, 2023 or any other date approved by SEC. The company said the offer would be opened for some 28 days.

    Royal Exchange, which is pursuing a voluntary recapitalization of its businesses, plans to issue 4.116 billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share.

    The rights issue will be pre-allotted on the basis of four new ordinary shares of 50 kobo each for every five ordinary shares held as at the close of business on Monday, March 06, 2023.

    The board of directors of the group had earlier submitted application to the NGX for the approval of the rights use and subsequent listing of the issued shares after the completion of the offer.

    Shareholders of Royal Exchange had authorised the board of the company to raise new equity capital of up to N2.06 billion from existing shareholders.

    Read Also: Naira to close strong on $34.8b year-end diaspora remittances target

    At an extraordinary general meeting, shareholders approved resolutions authorising the issuance of 4.112 billion ordinary shares of 50 kobo each to existing shareholders with a view to raising N2.058 billion.

    The meeting mandated the board to fix the offer price and shareholders also waived their pre-emptive rights to allow the company offer unsubscribed shares to interested investors, on the same terms as the rights issue.

    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.

  • Royal Exchange grosses N14.7b premium

    By Victoria Adenekan

    Royal Exchange Plc generated a Gross Written Premium of N14.7 billion as at December 31, 2018.

    This represents an increase of 15 per cent, compared to the N12.8 billion it made in the previous year.

    The company’s Net Premium Income for the period is N9.1 billion, a 29.7 percent growth over the 2018 figure, while net underwriting profit amounted to N9.73 billion in the financial year under review.

    Underwriting profit hit N3.67 billion in the 2018 financial year, up from N1.05 billion in 2017, while Net Income was N4.35 billion, from the corresponding figure of N2.4billion in 2017.

    An analysis of the results showed that the total assets of the group witnessed a growth of 6.74 percent, from N33.2 billion in 2017 to N35.53 billion as at December 31, 2018.

    Net claims amounted to N3.1billion, an eight percent marginal reduction from the 2017 figure of N3.42billon.

    Royal Exchange Chairman, Mr. Kenny E. Odogwu, said during the company’s Annual General Meeting (AGM) in Lagos, that despite the harsh operating environment, the group was able to deliver a better result against the previous years and that this was achieved through cost optimisation initiatives, innovation and extensive retail market expansion as well as by participating in large-ticket financial transactions.

    Odogwu stated the company envisions a situation where the retail insurance market should contribute between 50 and 60 percent of our revenues, as the retail market is the future of insurance.

    He added that with the approval from the National Insurance Commission to undertake agricultural insurance, the company has entered into strategic alliances with some stakeholders to drive insurance and that soon, revenue would start coming in from the subsector.

  • NSE lifts suspension on Royal Exchange

    The Nigerian Stock Exchange (NSE) has lifted suspension on trading in the shares of Royal Exchange Plc, after the insurance and investment holding group submitted its full-year audited report for the 2017 business year.

    The NSE had on July 5 suspended trading on shares of eight companies for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to submit their periodic financial statements and reports within stipulated timelines.

    The suspended companies included seven insurance companies and an auto company, namely African Alliance Insurance, Cornerstone Insurance, RT Briscoe, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company and Veritas Kapital Assurance.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year.

    The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

     

  • Royal Exchange makes N12.8b premium

    Royal Exchange Plc posted a Gross Premium of N12.8 billion  as at last December. This represents an increase in revenue when compared to the previous year’s figure, which stood at N12.5 billion.

    The firm’s Group Managing Director, Alhaji Auwalu Muktari, made this known following the release of the company’s financial results on the floor of the Nigerian Stock Exchange (NSE).

    He said net premium income for the period was N7.1 billion, while underwriting profit hit N7.6 billion.

    He said: “Operating results showed that the total assets of the group witnessed a marginal growth of five per cent, from N31.7 billion in 2016 to N33.3 billion as at December 31, 2017.

    “Net claims paid for the period under review amounted to N3.4 billion, a reduction of four percent from 2016, which stood at N3.6 billon. Net Income before management expenses totaled N2.4 billion, showing a slight dip from the N2.7 billion that was generated in 2016.”

    Muktari added that despite the harsh  environment, the group grew its figures by participating in large-ticket financial transactions as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.

    “Royal Exchange envisions a situation where the retail insurance market should contribute between 50 and 60 per cent of our revenue in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country,” Muktari said.

     

     

     

  • Royal Exchange grosses N12.8b premium in 2017

    Royal Exchange Plc yesterday released its audited report for the 2017 business year, showing modest increase in gross premium written from N12.5 billion in 2016 to N12.8 billion in 2017.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that net premium income stood at N7.1 billion while underwriting profit amounted to N7.6 billion. Total assets grew marginally by five per cent from N31.7 billion in 2016 to N33.3 billion in 2017. Net claims paid in 2017 stood at N3.4 billion, a reduction of four per cent N3.6 billion paid in 2016. Net income before management expenses totaled N2.4 billion in 2017 as against N2.7 billion in 2016.

    Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, said that despite the very harsh operating environment, the group was able to grow its figures by participating in large-ticket financial transactions, as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.

    According to him, Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50 and 60 per cent of its revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country.

    He added 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 and in the couple of months, revenues will start coming in from there.

    “Royal Exchange Plc, will in the years to come, continue to be an aggressive player in the retail market in Nigeria and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are getting thinner, yearly,” Muktari said.

    He noted that the bottom-line result of the group did not turn out as projected, due to increase in cost of doing business in the country, especially in the area of power generation and the general lull in the economic activities within the corporate markets.

    He pointed out that the company has implemented various cost optimization strategies and business process re-engineering measures which shall guarantee profitability in both the current financial year and the years ahead.

    “Our re-engineering process will center on three main pillars, namely Digital Transformation; Efficient Distribution Channels and Business Process Remodeling. As a group holding company with five subsidiaries across the insurance and financial services landscape, it has become of vital importance that we seek to improve our efficiency across the group by leveraging on cost discipline, astute capital allocation and investments and deployment of operational know-how to make Royal Exchange Plc a leaner, faster, smarter and customer-centric organization,” Muktari said.

    He said the company has repositioned itself to meet the ever-changing needs of the clients, wherever they are, offering them products and services they want, when they want it and how they want it.

    “For the future that we behold, our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace. The focus of the Board and Management of the Group is to achieve sustainable growth for the company through deepening our revenue base, improving service delivery and its support systems and at the same time, keeping costs in check,” Muktari said.

  • Royal Exchange MD ‘is outstanding CEO’

    R oyal Exchange Plc Group Managing Director Alhaji Auwalu Muktari has

    been awarded the Outstanding Chief Executive Officer of the Year (Insurance) by Independent Newspapers during its Annual Awards at the Eko Hotel and Suites, Lagos.

    According to Independent Newspapers Managing Director/Editor-in-Chief, Mr. Ade Ogidan, the award was in recognition of Muktari’s doggedness, dynamism, unparallelled energy and passion in impacting insurance and excelling in a very difficult business terrain.

    Commenting on the award, presented by Vanguard Newspapers Publisher, Mr. Sam Amuka, Muktari thanked Independent Newspapers’ management for selecting him from the over 50 insurance chief executives in the country.

    He praised Royal Exchange Board and Management for their support to him.

    Muktari said the award would  spur him and his team to strive for better financial results.

    ‘’Our resolve as a 100-year company operating in Nigeria is to ensure that we leave a great legacy for those coming behind.

    ‘’The goal for all of us in Royal Exchange is to ensure we make the company among the best insurance groups in Nigeria,’’ he  added.

     

  • Royal Exchange restructures for market dominance

    After 100 years of existence, Royal Exchange Plc has announced plans to restructure its key operations, to enable the group and its various subsidiaries respond to the demands and needs of its clientele across the country.

    The exercise, which has begun, was announced by the Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, during a media parley with reporters.

    At the event, Muktari unveiled plans to celebrate the firm’s centenary.

    He said as they embarked on the next 100 years, it was important that they reassessed the fortunes of the company, and devised strategies for the next century to remain relevant.

    He said the restructuring rests on three main pillars: Digital Transformation; Efficient Distribution Channels and Business Process Remodelling.

    He added that one of the goals of the restructuring project is the group’s desire to develop and implement an efficient and cost-effective distribution channel that will support the company’s earlier objective of being nimble and give the group leverage in delivering products and services faster and better and more reliable to its teeming clients in Nigeria.

    He said: “Royal Exchange has been operating in Nigeria since 1918 and this year marks our 100 years of offering best-of-bred insurance services to our various clients across the country and beyond and also meeting the expectations of our stakeholders. As we embark on the next 100 years, it is important that we reassess the fortunes of the company, and devise plans and strategies for the next century in order to remain relevant now and in the years to come, while satisfactorily meeting the expectation of all stakeholders.

    “We seek to build and develop digital tools as an enabler to reach our clients and conduct more efficient back-office operations. This will entail our deployment of digital solutions that will ease our business operations and also the use of various social media tools to reach our current and potential clientele today and tomorrow. By developing and deploying various business applications, we believe that we will become more nimble and able to respond quickly to change, whenever it comes.

    “As a group holding company with five subsidiaries across the insurance and financial services landscape, it has become of vital importance that we seek to improve our efficiency across the group by leveraging on cost discipline, astute capital allocation and investments and deployment of operational know-how to make Royal Exchange Plc a leaner, faster, smarter organisation, equally adept at meeting the ever-changing needs of the consumer, wherever they are, offering them products and services they want, when they want it and how they want it.

    “For the future that we behold, our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace. The focus of the management of the group is to achieve sustainable growth for the company through deepening our revenue base, improving service delivery and its support systems and at the same time, keeping costs in check,” he said.

     

  • Royal Exchange Prudential Life strategises on performance

    Royal Exchange Prudential Life Assurance (REPLA) will focus on customer service excellence and other major initiatives to enhance its financial performance in the next three years, Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari has said.

    Muktari, who spoke during a strategy and budget retreat session of the company held in Lagos, said they plan to lead the insurance market and enhance the company’s status as a dominant player in the life business.

    Alhaji Muktari urged the staff of company, especially those in customer-facing departments, to make service excellence their watchword and guiding principle in their operations with clients of the company.

    He stressed that it is very important to keep customers satisfied to remain in business, noting that if the customer is treated well, he or she stays with you, but if they receive shabby and unsatisfactory treatment, they will take their business elsewhere.

    Managing Director of the company, Wale Banmore stated that in addition to service excellence, his company’s focus is also on the deployment and upgrade of a robust retail marketing strategy to take insurance to the grassroots, as well as training and upgrading of the marketing personnel, in line with current realities.

    He said: “The future of insurance in Nigeria is the life business, which has not been fully tapped. For Royal Exchange Prudential to seek market leadership, an effective and efficient policy of customer service, loyalty and retention must be in place in the organisation.

    “The attainment of these goals, amongst others in the current financial year, will impact positively on the fortunes of the company, increase profitability in the years ahead, improve service delivery to our existing clientele, enable the company to win new retail and corporate accounts and at the same time, boost our premium income and market share.

    “Management believes strongly in the Royal Exchange brand and its people. It’s most important resource are more than capable of delivering outstanding service to existing and potential clients, nationwide”, Banmore added.

    Mr. Banmore further praised all staff of Royal Exchange Prudential, for their drive and resourcefulness, which has resulted in ‘winning ways’ for the company. He further challenged them to “work even harder in the years ahead, in order to achieve our objective of becoming a world class company by within the next three years”.

    The two-day strategy and budget session had in attendance, all the executive management staff of the company, including the regional and branch managers from the over 20 branches of the company.

    Royal Exchange Prudential Life Assurance Company is one of the leading life insurance companies operating in Nigeria, regulated by the Nigerian Insurance Commission (NAICOM) and has consistently maintained all regulations and minimum reporting requirements set by the regulators.

    Royal Exchange Prudential Life Assurance Company is a wholly owned subsidiary of Royal Exchange Plc, licensed by the National Insurance Commission to offer the full range of life and endowment insurance products. With years of experience in the Nigerian insurance market, Royal Exchange Prudential Life Assurance has an enviable reputation for reliability, integrity, professionalism, technical competence and financial strength.