Adedapo Adesanya
By Adedapo Adesanya
Royal Exchange Plc has released its unaudited financial statements for the period ended September 30, 2019, with the results showing things were look warm in the period.
The insurance company recorded a decline in its Gross Premium Written (GPW), going down to N12.70 billion from N13.03 billion, while the unearned premium closed at N1.65 billion against N1.86 billion.
This saw the company’s gross premium income reducing to N11.05 billion from N11.18 billion, while the net premium income increased to N6.92 billion from N6.91 billion, with the net underwriting income growing to N7.26 billion from N7.56 billion.
Total underwriting expenses went up during the period under analysis to N5.95 billion compared to the N5.69 billion recorded in 2018, bringing about an underwriting profit of N1.31 billion as against N1.89 billion last year.
However, the net income was lower this period, closing at N2.03 billion while last year’s numbers were N3.02 billion. Despite this, the company was able to cut its management expenses to a total of N2.10 billion from N2.85 billion.
In the first nine months of this year, Royal Exchange declared a loss before tax ofN72.88 million against the profit before tax of N163.51 million, while it posted a loss after tax of N96.20 million against a profit after tax of N111.18 million in September 2018, indicating a decline of 187 percent.
The company’s earnings per share closed at a loss of 2 kobo in Q3 2019 against 2 kobo in Q3 2018, while the share price of the insurer in the first nine months of this year closed at 21 kobo per share in contrast to 22 kobo per unit it traded at the same period last year.
In terms of equity, the company’s share capital remained unchanged at N2.57 billion while its total equity so far was fixed at N4.98 billion, higher than it was in the same period last year at N3.84 billion.
