Royal Exchange reduces Q3 2021 profit forecast by 77.46%
Royal Exchange Plc has released its earnings forecast for the third quarter (Q3) ending 30 September 2021 to the Nigerian Exchange (NGX) with a gross written premium of N3.998 billion down from N12.716 billion projected for Q2 2021.
The profit after tax was also projected to drop by 77.46% to N128.688 million from N570.917 million in Q2.
Cash and cash equivalent at the end of the period is projected to rise slightly to N7.109 billion from N7.101billion at the beginning of the period.
In 1918, our company started operations in Nigeria represented by Barclays Bank DCO and on February 28, 1921, converted to a full branch of its then-parent company, Royal Exchange Assurance, London.
Royal Exchange Assurance, London, was originally founded in 1720 and was one of the first two insurance companies in Britain to receive legal status via the Royal Charter. Originally established for the marine business, it expanded within a year to include fire and life insurance as well, thereby becoming Britain’s first composite insurer.
The establishment of the branch in Nigeria was the result of an overseas expansion drive in the early 20th century. Some notable figures in the local insurance Industry have headed our company, which was, for over twenty years the only insurance company operating in Nigeria. Thus, our company can be said to be the beginning of insurance in Nigeria and today, has one of the largest branch networks in its sector with 16 branches and four (4) business directorates nationwide.
Pursuant to Section 396(2) of the then Companies Act of 1968, our company was, on December 29, 1969, reconstituted and incorporated as a Private Limited Liability Company, the Royal Exchange Assurance (Nigeria) Limited. The company went public on July 18, 1989, and was duly listed on the Nigerian Stock Exchange on December 3, 1990.
In June 2007, our company entered into a merger with African Prudential Insurance Company Limited and Phoenix of Nigeria Assurance Company Plc. The merger brought about a significantly stronger company, better positioned to serve the needs of its clientele in the financial services sector.
In June 2008, our company was re-organized into a group structure, whereby our company assumed the role of a holding and asset management company to execute its strategic vision for financial services, namely insurance, funds management, finance and banking, through its five wholly-owned subsidiaries namely:
