Royal Exchange Plc posts Loss After Tax of N355.94 million for Q3 period ended 30th September, 2021

Royal Exchange Plc released its unaudited financial results for the Q3 period ended 30th of September 2021.

  • Gross premium written during the period was N610.24 million. (-74.96% YoY)
  • Gross premium income for the period was N573.53 million (-85.07%)
  • Net premium income stood at N545.86 million. (-74.20% YoY)
  • Underwriting loss for the period was N224.18 million. (-257.83% YoY)
  • Loss before tax of N342.68 million was recorded during the period.
  • Loss for the period stood at N355.94 million (-344.48%)
  • Total assets during the period stood at N13.49 billion. (-18.88bn YtD)
  • Earnings per share of –7 kobo Vs 2 kobo YoY.

See full result here

DEAL: AfricInvest acquires minority stake in Royal Exchange General Insurance Company.

AfricInvest, a leading Pan-African asset management company has announced the acquisition of a minority stake in Royal Exchange General Insurance Company (REGIC). The investment was made through its private equity fund, FIVE, in the form of a subscription to a capital increase.

According to a notice issued by the company and filed with the Nigerian Exchange Limited (NGX), the new investment has already been approved by National Insurance Commission (NAICOM).

Following the recent investment, the Board of REGIC will be subsequently restructured to reflect this new reality. New directors from FIVE (the private equity arm of AfricInvest), will join the Board of REGIC, alongside Royal Exchange Group and Blue Orchard’s InsuResilience Investment Fund (IIF) that had earlier invested in the company in July 2019.  These new directors are expected to bring their wealth of experience and expertise in their various fields into play and chart a new strategic direction for REGIC, especially as the company seeks to be among the top 3 general insurance companies in Nigeria within the next 5 years. The appointment of these new Directors is awaiting approval from the primary regulatory body, NAICOM.

Why this matters: The investment will avail REGIC the opportunity to expand its underwriting capacity in key priority areas considered as the future of insurance, such as the retail mass market, agricultural insurance and insurtech, among others. In this light, the firm will be empowered to participate in more large-ticket corporate transactions, diversify its existing business and product lines as well as diversify its delivery channels.

In addition, the firm (REGIC) disclosed that the recent investment will help strengthen its execution capabilities at top and middle management in order to ensure the successful implementation of an ambitious growth plan for the company within the next 5-7 years.

What they are saying: Commenting on the new investment by AfricInvest, the Chairman of Royal Exchange Plc, Mr. Kenneth Ezenwani Odogwu, Chairman of Royal Exchange Group added, “Being the first insurance company in Nigeria and having been in business for over 100 years, I am excited and hopeful that we will be just as prominent for the next 100 years. The investment by AfricInvest and Blue Orchard is an important inflection point on this journey. Under the auspices of a new board led by a seasoned professional like Mr. Ike Chioke (awaiting NAICOM approval), I am confident that we will continue to provide relevant services and products to a new generation of insurance customers

Mehdi Gharbi, Senior Partner at AfricInvest and Co-head of FIVE, commented, “REGIC represents a perfect fit with the investment strategy of FIVE as it combines return and impact. REGIC’s expansion plan will allow the Company to achieve sustainable and strong growth, facilitating access to insurance while creating value for stakeholders. I’m excited to join the REGIC’s board and to contribute alongside my colleagues the emergence of a new champion in the Nigerian insurance market.”

Ernesto Costa, Head of Private Equity Investments at BlueOrchard and representative of IIF in the board of REGIC added, “One of the key drivers behind our decision to invest in REGIC in 2019 was the history of the company, as well as the commitment of the key shareholders and management team to chart a new strategic direction for the company towards retail and improving the resilience of small-scale farmers, SMEs and households against the effects of climate change. We are happy with the addition of AfricInvest, a like-minded and experienced investor, as a strategic shareholder and together, we will offer the necessary expertise, leadership and direction from the Board to ensure REGIC continues on its growth trajectory.’’

Sylma du Plessis, Partner at Alkebulan and advisor to the Royal Exchange Group commented, “This transaction is testament to REGIC’s strong management and opportunity set that it could successfully attract investors of the caliber of FIVE. We are proud to have played a part in securing funding for and giving financial advice to the Royal Exchange Group.”

What you should know:

  • Royal Exchange General Insurance Company (REGIC) is one of Nigeria’s biggest private insurance companies established in 2008, following the restructuring of the then Royal Exchange Assurance Nigeria (REAN) which had been in operation for over a century in Nigeria.
  • AfricInvest is a leading private equity firm in Africa that has raised over $1.9 billion in funds. It was founded in 1994 and has made over 180 investments in more than 25 countries across the African continent in a variety of sectors.
  • Financial Inclusion Vehicle (FIVE) is the private equity arm and the evergreen investment vehicle of AfricInvest. It was raised in December 2017 and dedicated to the financial sector in Africa.
  • For this transaction, Royal Exchange General Insurance Company had Messrs Alkebulan and Co as its Financial Advisers, while Sefton Fross were its Legal Advisers. On the other hand, Udo Udoma, Bello Osagie (UUBO) and Co acted as the Legal Adviser for FIVE, while Punuka International Law Centre acted as the Legal Adviser for Royal Exchange Plc.

 

Royal Exchange Plc to hold 52nd Annual General Meeting (AGM) on October 28

The Board of Royal Exchange Plc has announced that it will be hosting its 52nd Annual General Meeting on the 28th of October, 2021. The meeting will be virtually held at the company’s operations office in Oshodi, Lagos, by 10:00 am prompt.

This is according to a statement issued by the company and made available on the website of the Nigerian Exchange Limited (NGX).

Some of the issues to be discussed at the AGM include;

  • The audited financial statement for the year ended December 31, 2020, and the report of its Directors, auditor, and the audit committee.
  • Board appointments will also be considered and ratified.
  • To fix remuneration of managers and Directors in FY 2021.
  • To elect shareholders’ representatives of the statutory audit committee, among others.

In view of the directives on physical distancing and the restriction on maximum number of people at every gathering due to the COVID-19 pandemic, the meeting will hold by proxy in accordance with section 254 of the Companies and Allied Matters Act 2020 and as approved by the Corporate Affairs Commission.

Additionally, the AGM will be streamed live online, to enable shareholders and other relevant stakeholders who will not be attending the meeting physically to also be part of the proceedings. The link for the live streaming will be made available on the company’s website: www.royalexchangeplc.com

What you should know:

  • Royal Exchange Plc had earlier reported a 62% decline in its 2021 half year profit to N233.12 million.

For more information about the AGM, click HERE.

 

2021 H1 Results: Royal Exchange half year profit slumps by 62% to N233.12 million.

Royal Exchange released its unaudited consolidated financial statements for the half year period ended June 30, 2021.

  • Net premium income for the period was N3.66 billion. (-11% YoY)
  • Fees and commission income of N307.2 million. (+13% YoY)
  • Underwriting profit was N892.04 million. (-22% YoY)
  • Total expenses of N1.11 billion. (+14% YoY)
  • Profit after tax was N158.5 million. (-62% YoY)
  • Loss per share of 1 kobo Vs 5 kobo YoY.
  • Total shareholders’ fund for the period was N3.31 billion. (-10% YoY)

See link to results.

Royal Exchange grows profit by 10% to N22.76 million in Q1 2021.

Royal Exchange Plc released its unaudited consolidated financial statements for the quarter ended 31 March, 2021.

  • Net premium income during the period was N2.6 billion. (+22% YoY)
  • Fees and commission income of N120.4 million. (+14% YoY)
  • Underwriting profit of N822.41 million. (+69% YoY)
  • Total expenses of N850.24 million. (+62% YoY)
  • Total assets stood at N27.63 billion during the period under review.
  • Profit after tax was N22.76 million (+10% YoY)
  • Total shareholders fund was N3.29 billion. (-10% YoY)
  • Loss per share of -N2 Vs. -N3 YoY

See link to results.

Royal Exchange reports a loss after tax of N77.12 million in FY 2020.

Royal Exchange Plc released its audited full-year results for the year ended December 31, 2020.

  • Net premium income for the period was N8.19 billion. (-6% YoY)
  • Fees and commission income of N663.21 million. (+38.3% YoY)
  • Net claims expenses of N2.7 billion. (-16% YoY)
  • Underwriting profit was N1.12 billion. (+22.2% YoY)
  • Operating expenses totalled N2.3 billion. (-3.6% YoY)
  • Loss after tax was N77.12 million.
  • No dividend was declared during the period.

See link to results.

Royal Exchange Plc: Notice of Board Meeting

Royal Exchange Plc has announced that it will be a virtual hosting a Board of Directors meeting on Wednesday, 13th of October, 2021 by 10:00 am prompt. The meeting will be held via zoom

According to a notice issued by the company and filed with the Nigerian Exchange Limited (NGX), the meeting will enable the board members to receive and consider the unaudited financial statements of the company for the period ended September 30, 2021 and discuss other relevant issues affecting its operations.

Consequently, in line with the Rule 17&18(b) of the Nigerian Exchange Limited Rule Book, the firm have commenced a closed period from 30th of June, 2021 until twenty-four (24) hours after the outcome of the meeting and the Bank’s unaudited financial statements for the aforementioned period have been filed with the NGX and made public.

During the closed period, all insiders of the company such as; directors, employees, advisers, consultants and any other person (s) with insider’s information and their connected persons are prohibited from transacting in the shares of the company.

To access the disclosure, click HERE.

 

Royal Exchange Plc: Notice of Emergency Board Meeting.

Royal Exchange Plc has announced that it will be hosting an emergency board of Directors meeting on the 21st and 23rd of September, 2021.

This is according to a disclosure signed by the company’s secretary, Ngozika Onu, and sent to the Nigerian Exchange Limited (NGX).

According to the notice, the meeting will enable the Board Directors to consider and approve the company’s financial statement for the year ended 31st of December, 2020. Decisions reached at the meeting will be subsequently communicated.

In addition, the firm also announced a closed period from 30th of June, 2021 until 24 hours after the company’s financial statement and outcome of the board meeting have been made public in line with the Rulebook of the Nigerian Exchange Limited.

In the closed period, insiders of the firm such as its directors, managers, employees, advisers, etc., and people related to them are strictly prohibited from directly or indirectly dealing in the shares of the company

Here is a link to the notice.

 

Royal Exchange Plc projects profit after tax of N70.16 million in Q4 2021.

Royal Exchange Plc released its earnings forecasts for the fourth quarter of the year (Q4, 2021).

  • Net premium is projected to hit N368.5 million.
  • Total underwriting expenses projection of N348.7 million.
  • Net operating income is projected at N389.6 million.
  • Profit before tax is projected at N103.17 million
  • Tax is projected at N33.01 million
  • Profit after tax is projected at N70.16 million.

See link to results.

Royal Exchange Plc appoints new company secretary.

Royal Exchange Plc has announced the appointment of Mazars Ojike and Partners as its new company secretary, effective from 30th of May, 2021.

This is contained in an official disclosure sent to the Nigerian Exchange Group Limited (NGX) which reads: ‘’Royal Exchange Plc (the company) wishes to inform its shareholders and the investing public that the company has appointed Mazars Ojike and Partners as its new Company Secretary.’’

By the virtue of its appointment, Mazars Ojike and Partners will offer secretarial services and act as representative of Royal Exchange Plc.

About Mazars

Mazars Ojike and Partners is part of an international audit, tax and advisory firm. It has six distinct service lines which include; accounting and outsourcing solutions, audit, consulting, financial advisory, legal/corporate commercial and tax solutions. The firm was indigenously established in June 1975 and currently boasts of over 90 professionals (including 4 partners)

 

For more information about the recent disclosure, click HERE.