Insurance World

Royal Exchange Gives Q3 2020 Deadline To Conclude Life Business Recapitalization, Pays N3.18billion As Claims FY19

BY NKECHI NAECHE-ESEZOBOR--Nigeria’s foremost insurance company, Royal Exchange Plc on Thursday assured its shareholders that it will meet the December 31st deadline set by the National Insurance Commission ( NAICOM) For Recapitalization.

The chairman of the company, Kenny Odogwu disclosed this during the company’s 51st virtual Annual General Meeting (AGM) held in Lagos, that while the general business is almost through with the capital raising process, they are on course to conclude that of the life business by the end of third quarter(Q3) 2020 ahead of the deadline.

The chairman who was represented by Alhaji Ahmed Rufa’I Mohammed also said that other subsidiaries such as the Microfinance bank, HMO and finance company respectively are not being neglected in the capital injection exercise in order to make them competitive and stronger in the ever growing financial market.

Presenting the company’s 2019 financial performance to shareholders, the chairman said that the company paid a total of N3.18billion as claims when compared N3.16 billion paid in 2018, representing an increase of one percent.

He added that group cost containment was effective throughout the year under review as a total operating expenses dropped from N4.03billion in 2018 to N2.4billion, indicating a 42percent drop and N2billion savings. It also translated to 38percent and N1.5billion savings when compared to the corresponding year 2019 budgeted amount.

On the company’s plans to improve the business, he said “the new world class software we acquired earlier in 2019 and deployed to our insurance subsidiaries has started yielding positive fruits by making our workforce seamless.”

He added that ” to remain competitive as fledgling insurance superpower, and in line with our strategic implementation of our digitalization plan, the newly upgraded website has many features including call-to-action/sale capabilities which is customer focus. Clients can now log in and purchase insurance cover online and call-centers too is now up and rerunning with 24-hours facilities to attend to enquirers.”

The other subsidiaries within
the group now have their independent website dedicated fore their operations.

Shareholders who attended the meeting to represent their various shareholders including Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) Sir. Sunny Nwosu and Chairman, Progressive Shareholders Association of Nigeria, Boniface Okezie applauded the board and management for such a wonderful result in 2019 and its effort to Recapitalized the general and life business before the deadline.

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