Wale Banmore, GMD Royal Exchange Group
BY NKECHI NAECHE-ESEZOBOR-Leading insurance company In Nigeria, Royal Exchange Plc said is projecting a gross written premium growth of N2.366billion at the end of Q4 quarter 2020.
This is contained in its fourth quarter 2020 earning forecast sent to the Nigerian stock Exchange yesterday that premium income budget for the year is zero based while net premium is to grow to N2,079billion.
Reinsurance is projected at 31 percent of gross written premium.
The notice further stated that profit after tax for the fourth quarter is expected to stand at N731,841 million while profit before tax was projected to be N1.076billion in same quarter of 2020.
Fees and Commission income was forecasted at 11% of reinsurance expense and claims expense of N559Million is estimated not to exceed 27% of Net Premium Income.
Underwriting expenses of N542Million is forecasted not to exceed 26% of Net Premium Income, while management expenses of N547million is estimated not to exceed 26% of Net Premium Income .
Total Operating Expenses of N610Million represents 21% of the total amount budgeted for 2020 and the Inflation rate was projected at 13% as the worst case scenerio.
The company however assumed exchange rate of N380 to a dollar.
With this Royal Exchange Plc joins the list of top companies listed on the stock exchange who have been up to date with the submission of its financial reports to the Exchange and the National insurance Commission( NAICOM).
The company’s shares continue’s to improve on the trading floor of the exchange despite the COVID-19 pandemic.
