Earnings From Associate Firms Lift Royal Exchange Profit

Earnings from associate companies are pivotal to Royal Exchange Plc profit growth as the company seeks to be a Tier-One insurance company in the next three years, while maintaining a healthy balance sheet.

For the first nine months through September 2025, Royal Exchange Plc profit after tax (PAT) spiked by 89.46 percent to N1.48 billion from N781.16 million as at September 2024.

Earned income, which represents revenue, was up 85.85 percent to N1.85 billion in September 2025 from N996.87 million the previous year.

Without earnings from its subsidiary companies, Royal Exchange would be operating on very slim profit margins as it generated N1.56 billion income from associate firms, which was 70.86 percent higher than 2024’s N913.17 million.

According to the Royal Exchange, this investment in associate represents the Group’s investment in Royal Exchange General Company Limited (REGIC) now REX insurance, Royal Exchange Microfinance Bank Limited (REMFB) and RoyalMExchange Healthcare Limited (REHL), now known as DotHMO.

The Associated companies are registered Nigerian companies involved in general insurance business, health insurance and financing of micro and small enterprises, representing 39.21% (December 2022: 39.21%) equity interest in REGIC and 30% (December 2022: 30%) equity interest in REMFB;29.84% (December 2022: 29.84%) equity interest in DotHMO.

REGIC became an associate company of the Group in September of 2021 following the acquisition of a minority stake byAfricInvest, a leading Pan-African asset management platform covering Private Equity, Venture Capital, and Private Credit while DotHMO and REMFB became an associate in December, 2021 following the acquisition of 70% stake in REMFB by Tech Partners a leading technology Company.

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