Business
Royal Exchange Group Posts N2.4m Loss
Royal Exchange Assurance Group, one of the non-banking financial services groups has posted a loss after tax of N2.4 million for the financial year ended December 31st 2008.
This is against a profit after tax of N647.1 million recorded in 2007 which represents 476.37 per cent decline in profit.
However, the group recorded N3.36 billion premium income from its operations for the period under review a 25.37 per cent improvement on the figure of the previous year which was N2.68 billion.
Shareholders stake in the company however went down by as much as 48.99 per cent, falling from an all time high of N11.92 billion in the previous year to N6.08 billion at the end of the last accounting period.
According to the company’s annual report made available at the 40th annual general meeting of the company in Lagos last week, total assets fell by 23.61 per cent while net premium income stood at N2.60 billion, as against N2.09 billion, recorded in the previous year, a 24.40 per cent improvement.
Premium earned by the firm within the year under consideration rose by 16.59 per cent, rising from N2.17 billion, in 2007 to N2.53 billion, last year.
Also last year, Royal Exchange paid claims to the tune of N880.08 million, a 45.40 per cent improvement in the level of customer’s expectations met and surpassed. In the previous year, claims settled by the group totaled N605.30.
Underwriting profits closed at N572.10 million, a 32.49 per cent shortfall from the N847.44 million, made in 2007 while interest income went up to N94.96 million, even as its investment income fell short of its 2007 figure by 9.67 per cent, having gone down from the N571.50 million, in the previous year to N516.25 million, last year. It also improved on its other incomes by a whopping 1,433.92 percent, increasing it from N7.90 million, in 2007 to N121.18 million, last year just as it improved its earnings from stock exchange operations by 143.91 percent. This was reversed from a N14.28 million, loss position in 2007 to N6.27 million, gain last year.
Loss before taxation and exceptional items was N164.64 million, a 21.23 percent shortfall when compared to the N775.41 million, profit recorded in the previous year.
Within the period, the group wrote off N1.37 billion, as exceptional items resulting to a N1.54 billion loss before tax which translates to a 298.50 per cent fall from the N775.41 million profit that it recorded at the close of business in 2007.
The Royal Exchange Group within the year under consideration increased its paid up share capital by 10.12 percent, moving it up from N1.68 billion, in the previous year to N1.85 billion, last year.
It also raised its contingency reserve by 22.91 percent from N445.79 million in 2007 to N547.92 million last year. While its investment properties revaluation reserve rose slightly by 1.96 per cent from N2.04 billion last year.
The group’s general reserve was significantly drawn down by as much as 314.35 per cent, having been reduced from N933.71 million in the previous year to N2 billion deficit last year.
Shareholders’ interest in the company also nose-dived; it fell by 48.99 per cent, having been drawn down from N11.92 billion in the previous year to N6.08 billion last year.
The group however increased the balance in its insurance fund by 45.68 percent, raising it from N1.27 billion in 2007 to N1.85 billion in 2008.
Short term investments went down significantly by as much as 95.88 percent as well as its long term investment by 49.92 per cent.
The group’s short term investments was reduced from N2.06 billion in the previous year to N84.77 million last year.