Regency Alliance Insurance reports strong 2024 results, grows assets to N21.9bn

REGENCY Alliance Insurance Plc has reported a strong financial performance for the 2024 financial year, with total assets rising by 15.96 percent to ₦21.857 billion from ₦18.848 billion recorded in 2023.

The company’s Chairman, Clem Baiye, disclosed this during its 31st Annual General Meeting (AGM), where he described the performance as a reflection of the insurer’s resilience, prudent investment strategy, and commitment to balance sheet growth amid a challenging operating environment.

According to Baiye, the group’s shareholders’ fund recorded a robust 19.24 percent increase, reaching ₦13.972 billion in 2024 from ₦11.718 billion in 2023.

Similarly, equity attributable to the company rose to ₦14.044 billion, up from ₦11.778 billion in the previous year.

Insurance revenue climbed by 20.03 percent to ₦7.302 billion, compared to N6.083 billion in 2023, underscoring expanding underwriting activities and sustained business growth.

However, insurance service expenses, including incurred claims and technical costs, grew by 46.37 percent to ₦4.117 billion from ₦2.813 billion the prior year.

Despite the rise in expenses, Baiye said management maintained cost discipline, as reflected in a modest 7.66 percent increase in administrative costs year-on-year.

Investment income also improved, reaching ₦1.165 billion in 2024 from ₦0.923 billion a year earlier.

The company further recognised a fair value gain of ₦170 million from the revaluation of its investment property, reflecting market-adjusted asset growth.

Consequently, profit before tax rose to ₦2.503 billion, representing a 19.49 percent increase from ₦2.095 billion in 2023, while profit after tax advanced by 16.73 percent to ₦2.254 billion, up from ₦1.931 billion recorded the previous year.

In appreciation of shareholders’ support, the board proposed a bonus issue of one new ordinary share for every three held.

Baiye further announced that the board had approved plans to embark on a rights issue and private placement to raise the ₦15 billion minimum capital required under the new Insurance Industry Reform Act (NIIRA) 2025.

Speaking on the company’s outlook, the Managing Director, Bode Oseni, expressed confidence that the capital raising exercise would position Regency Alliance among Nigeria’s top non-life insurance providers.

“The Board is convinced that our company has the potential to become a leading force in the non-life insurance space,” Oseni said.

He added that upon completion, the new shares would be allotted and listed on the Nigerian Exchange, enhancing liquidity and shareholder value.