Climate Change Data

Environmental Metrics

Social Achievements

• Provides health insurance for all group staff through its subsidiary, Royal Exchange Healthcare Limited.
• The Group’s consultation machinery was fully utilized in the year to disseminate management policies and encourage employee involvement in its affairs.

Governance Achievements

• The company maintains the culture of exposing the board members to corporate governance training to enhance their performances.
• The Board of Directors has overall responsibility for the establishment of the company’s Risk Management framework and exercises its oversight function over all the company’s prevalent risks via its various committees.
• The company has policies such as- Code of Business Ethics which provides guidance for the board and staff to avoid unethical and unwholesome practice and conflict of interest in any business relationship.
• Additionally, there is whistle blowing policy that encourages reporting on unethical behavior in the company.

Environmental Challenges

• Hostile operating environment in 2021 resulted in a group-wide total gross written premium (GWP) decrease of 81.4% or ₦12.45 billion.
• Recorded a loss before tax of ₦554.61 million in 2021 against profits before tax of ₦130 million achieved in 2020 resulting in an increase in losses before tax of 526.5% or ₦684.65 million.
• As of 31 December 2021, the Group recorded a loss after tax of ₦554.585 million (2020: ₦77.166 miilion). At the same time, the group’s admissible assets less net insurance and investment contract liabilities amounted to a solvency deficit of ₦3.916 billion (2020: ₦2.793 billion).

Mitigation Strategies

• Inject more capital and funds into the business via equity investment from proposed investors and sale of the company’s investments which includes investment property located at Cadastral zone in FCT, Abuja at a proceed price of ₦1.2 billion to a prospective buyer and thereafter the sales proceed would be re-invested in fixed income securities.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the Group and company’s financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• On the deficit in our Solvency Margin Computation, we are pleased to inform you that we are concluding meeting the Condition Precedents (CPs) of the term sheet executed with the investor, the implementation of which will cure our solvency deficiency and take our capital to ₦8 Billion.
• Enforce due process policies and strict internal control measures that will aid the cost reduction drive.
• Strict compliance with risk profiling of new policies/renewals on exiting policies portfolio and a resolve to exit from toxic Group life businesses.
• The company has embarked on full digitization through the deployment of an ERP - IES insurance solution to drive internal processes and efficiency. Also, the full digitization to drive risk-based retail products. This will translate to more revenue with less cost of acquisition
• Continuous review of risk appetite by not relying on public sector related businesses that is prone to high acquisition costs.
• To shift the strategic marketing focus to the growth in pure risk, retail business. This should translate into more revenue with less cost acquisition. Emphasis on developing new pure risk businesses to mitigate the effect of investment linked policies has commenced and the benefit have started to emerge.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Climate change’s impact is seen in crop yields declining by 7% in the short term (2006–2035) and by 25% in the long term (by 2050).
• shortages of water and grazing land are generating communal conflicts

Transition Risks

• highlights the plight facing Nigeria’s oil sector and energy infrastructure.
• Eliminating fossil fuels will act as a drag on the transition to higher income

Opportunities

• provides a chance for inclusive and green development

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte & Touche

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change

Environmental Achievements

• Royal Exchange Plc is supportive and adaptive to the policies of sustainability and in that breath ensuring its subsidiaries and affiliates companies operate within the ambience, which supports and promotes ecofriendly operations.

Social Achievements

• Not disclosed

Governance Achievements

• Intensified oversight functions and continued implementation of control synergy.
• Established a whistle-blowing procedure to encourage reporting on unethical behavior.
• Regularly engaged with the regulator to ensure compliance with extant regulations.
• Continually engages with shareholders to foster better understanding of governance mechanisms and performance.

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment in 2022, including a decline in Nigeria's GDP growth (3.3%), high inflation (18.8%), and high unemployment (33.3%).
• Rising public debt and associated funding costs.
• Recurrent losses incurred by a subsidiary (Royal Exchange Prudential Life Plc).

Mitigation Strategies

• Recapitalized three subsidiaries with investments from strategic investors.
• Disposed of a long loss-making subsidiary.
• Deployed strategies to make the company responsive and adaptive to economic challenges.
• Strategic asset management focus geared towards driving profitability through investee companies.
• Plans to raise capital via shareholder loan and rights issue, receive returns from investee companies, enforce due process policies, and shift strategic focus to asset management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Climate change's impact on crop yields

Transition Risks

• Transition to low carbon highlights the plight facing Nigeria’s oil sector and energy infrastructure.

Opportunities

• Opportunities to transform the economy are emerging particularly in agro-processing sector.

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed