30 January 2013

Nigeria: Royal Exchange Settles N1.58 Billion Claims

Royal Exchange General Insurance Company, (REGIC), a subsidiary of Royal Exchange Nigeria Plc, said it paid N1.58 billion as claims to various policy holders from January to September 2012.

This figure, according to the firm, translates to a 54.75 per cent increase over the claims settled in the corresponding period of 2011, which peaked at N1.02 billion.

The Managing Director of REGIC, Mr. Olutayo Borokini, confirmed this in a statement issued in Lagos. He said the general special risks underwriting company focuses on prompt settlement of genuine claims, adding that the company has adopted this as its business philosophy going forward.

"Customer satisfaction is the fulcrum of insurance business and this inevitably builds customer loyalty. Once Royal Exchange is able to pay customers claims as they arise, more and more customers and the general public will have faith to take out insurance policies on their lives and properties because they are convinced that should a claim or loss arise, Royal Exchange will be able to meet its financial obligations to them," he said.

Reflecting on the pay out, Borokini said N631 million was paid out to its fire insurance clients, translating to 39.90 per cent of the total claims settled while N398.7 million was paid to motor insurance policyholders, representing 25.20 per cent of total claims paid.

In addition, industrial all risks insurance policy holders claimed N174.60 million from the company during the period under review and this translates to 11 per cent of the overall claims paid, he stated.

He further stated that N164 million, representing 10.30 per cent of the claims paid was in respect of the firm's marine insurance business while N68.10 million was paid to oil and gas insurance policy holders during the period.

Another N12 million was paid on engineering insurance portfolio with the N131.30 million or 8.3 per cent of the total claims paid to policyholders in other aspects of the company's business.

"The payment of these claims has shown that Royal Exchange General Insurance is more than capable of meeting its various claims demands. The company paid close to N4 billion to the Nigerian Bottling Company (NBC) for the fire in its Benin plant in 2010 and was the lead insurer in a consortium that paid out over N3.63 billion to Friesland Foods West African Milk Company (WAMCO) over the major flood disaster that occurred in its Lagos factory in 2011," the company's boss stressed.

The Royal Exchange group started operations in 1921 and prides itself as being driven by innovation and a determination to offer services that are of exceptional value to its customers.

Following its successful recapitalisation in 2007, the company was reorganised into a holding company with five subsidiaries including Royal Exchange General Insurance Company Limited (Non-Life Insurance Services) and Royal Exchange Prudential Life Plc (Life Assurance Services).

Other subsidiaries of the group are Royal Exchange Finance and Investments Limited (Financial Advisory Services), Royal Exchange Healthcare Limited (HMO and Health Insurance) Royal Exchange Microfinance Bank Limited (Banking Services).

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