Regency Alliance Insurance Plc has reported significant growth in its financial performance for the 2023 fiscal period, with gross written premiums reaching N6.02 billion. This marks a 7.99% increase compared to the N5.57 billion reported in the previous year. The company’s success was highlighted during its 30th Annual General Meeting held in Lagos, where the Chairman, Mr. Clem Baiye, shared insights into the firm’s improved financial metrics. In addition to the premium growth, the firm saw a substantial increase in insurance revenue, which rose by 21.11% to N6.083 billion, totaling an increase of N1.06 billion from 2022.
Baiye emphasized the positive impact of changing economic conditions on the company’s financial health, particularly the rise in money market and bank deposit rates, which led to an impressive 118.20% increase in investment income for 2023. The chairman pointed out that this growth was a significant contributor to overall financial performance and underlined the firm’s strategy to maximize returns from its investments. Furthermore, the board ensured that the company’s assets are appropriately valued amid inflation by revaluing investment properties, which resulted in a fair value gain of N478.50 million included in the Statement of Profit or Loss.
The astonishing profitability figures were also a focal point of the meeting, with profit before tax soaring to N2.09 billion, reflecting a remarkable 239.17% increase from the previous year’s N617.69 million. Profit after tax followed suit, jumping by 224.71% to reach N1.93 billion, up from N549.58 million in 2022. These profits showcase an impressive turnaround and solid financial management within the company. Additionally, the shareholders’ fund saw a growth of 68.55%, rising from N6.95 billion in 2022 to N11.718 billion, while total assets expanded significantly, reaching N18.86 billion—a 52.24% increase from the previous year with an additional N6.44 billion.
To reward the loyalty of existing shareholders and align with the anticipated increase in insurance companies’ capital base, Baiye announced a proposal to issue bonus shares. The board recommended the issuance of four new ordinary shares for every five ordinary shares currently held by shareholders, a move intended to not only enhance shareholder value but also to reflect a commitment to sustainable growth strategies. This recommendation aims to solidify shareholder confidence while positioning the company favorably for future opportunities.
In expressing gratitude, Baiye extended his appreciation to the dedicated management and staff of Regency Alliance Insurance Plc for their commitment and ensuring operational excellence in the face of competitive challenges. He stressed that their valuable contributions would be recognized and rewarded, underscoring the importance of a capable team in driving the company’s success. Furthermore, he acknowledged the esteemed clients, agents, and brokers who have remained loyal, expressing hope for continued support and a strengthening of business relationships moving forward.
In summary, Regency Alliance Insurance Plc’s financial performance in 2023 reflects robust growth across several key metrics, showcasing effective financial management and strategic positioning within the insurance market. The significant increases in gross written premiums, investment income, and overall profitability point to a well-executed business model. With the proposal of bonus shares and a commitment to rewarding stakeholders, the company is poised for continued success, fostering a collaborative environment that benefits shareholders, staff, and clients alike.
