Royal Exchange To Raise NGN3 Billion Via Bond


Royal Exchange PLC has announced that it will raise NGN3 billion via bond issuance on the Nigerian Stock Exchange to increase its risk and protection clout.

The company is already filing the bond issuance before the NSE for approvals. At yesterday’s closing bells, Auwalu Muktari, group managing director of Royal Exchange said:

“By October 2016 we want to play big in the Nigerian insurance industry and with need for more capital in the industry, we are re-strategizing to make sure that we have the required recapitalization to play bigger and take the opportunity in the insurance industry.”

“Besides that, the company is setting up a pension fund administration company, a PFA so that we tap into the opportunity of the annuity business.”

“During the year 2015 we strategized to start doing annuity business under our life company. And we have a very good strategy of marketing the annuity businesses and we made an income of about N1 billion in 2015. The annuity funds are there in our books and we are assuring our shareholders and the investors that as soon as we continue to grow our annuity funds the technical provisions made by the regulations will continue to show the sign of profitability. So we are working towards that. From the 2016 accounts you will see that we have returned to profitability” he said

It is expected that the company will be looking at shoring up its working capital. In its full year 2015 result, Royal Exchange reported a net loss of NGN897 million net loss compared to a net profit of NGN304.7 million.

The group’s expenditure grew by 6.1% to NGN187.3 million to a negative position of N3.3 billion from N3.1 billion recorded in 2014. Net premium income of NGN8.08 billion rose to NGN7.37 billion recorded in 2014.

The group has in its portfolio: Royal Exchange General Insurance Company Limited (Non-Life Insurance Services), Royal Exchange Prudential Life Plc (Life Assurance Services), Royal Exchange Finance and Investments Limited (Financial Advisory Services), Royal Exchange Healthcare Limited (HMO and Health Insurance), and Royal Exchange Microfinance Bank Limited (Banking Services).

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