Royal Exchange Plc recorded a net loss of N215.34 million in the immediate past business year as the insurance-led investment group struggled with continuing slowdown in general business performance.

At the end of its emergency board meeting, the board of directors of Royal Exchange approved the 12-month financial statement for the period ended December 31, 2019 showing declines in the top-line and the bottom-line.

Key extracts of the report showed that the top-line dropped from N15.86 billion in 2018 to N14.89 billion in 2019. As against pre-tax profit of N326.87 million in 2018, pre-tax loss stood at N158.22 million in 2019.

After taxes, net loss increased from N156.18 million to N215.34 million in 2019. Loss per share thus increased from 3 kobo in 2018 to 4 kobo in 2019.

The Nation had reported that the directors of the insurance-led investment group were having an emergency meeting on the accounts.

Under the rules at the Nigerian Stock Exchange (NSE), Royal Exchange is required to submit its audited financial statement and accounts, not later than 90 calendar days after the expiration of its business year.

The deadline for submission is thus March 30, 2020. The early submission of the accounts to the Exchange places Royal Exchange among the early filers, generally used by the NSE as an indication of good corporate governance.

An investment fund set up by the German government recently acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange.

The investment fund- InsuResilience Investment Fund (IIF) was set up for the German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.

The proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.

Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

The objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.

© Pakistan Press International, source Asianet-Pakistan