Regency Alliance posts strong 2024 earnings, eyes N15bn capital raise

Regency Alliance posts strong 2024 earnings, eyes N15bn capital raise

Regency Alliance Insurance Plc has reported a solid financial performance for the 2024 financial year, with total assets rising by 15.96 per cent to ₦21.86 billion, up from ₦18.85 billion in 2023.

The company’s Chairman, Mr. Clem Baiye, disclosed this while presenting the 2024 financial results at its 31st Annual General Meeting (AGM) held on Thursday.
He attributed the growth to the insurer’s disciplined investment strategy, prudent risk management, and sustained operational resilience amid a volatile economic climate.

According to Baiye, shareholders’ funds also recorded a healthy increase of 19.24 per cent, reaching ₦13.97 billion in 2024 compared to ₦11.72 billion in the previous year.
The equity attributable to the company likewise rose to ₦14.04 billion from ₦11.78 billion.

Regency Alliance’s insurance revenue climbed 20.03 per cent to ₦7.30 billion, reflecting improved underwriting performance and business expansion.

READ ALSO:

• Court sacks Zamfara Rep for defecting from PDP to APC
• Kaduna Rep dumps PDP for APC
• Gunmen kill pastor, abduct 20 in Kaduna community raid

However, insurance service expenses — which include claims and other technical costs — rose by 46.37 per cent to ₦4.12 billion, up from ₦2.81 billion in 2023.

Despite higher operating costs, Baiye noted that management expenses increased only modestly by 7.66 per cent, underscoring the firm’s commitment to cost discipline.

The company’s investment income also improved to ₦1.17 billion, compared with ₦923 million in the previous year. A fair value gain of ₦170 million was also recorded from the revaluation of investment property.

These gains lifted Regency Alliance’s profit before tax by 19.49 per cent to ₦2.50 billion, while profit after tax grew by 16.73 per cent to ₦2.25 billion, compared to ₦1.93 billion in 2023.

To reward shareholders, the board approved a bonus issue of one new ordinary share for every three held, while also unveiling plans to undertake a rights issue and private placement to raise the required ₦15 billion minimum capital under the new Insurance Industry Reform Act (NIIRA) 2025.

The Managing Director, Mr. Bode Oseni, assured shareholders that the new shares would be allotted and listed on the Nigerian Exchange upon completion of the capital raising exercise.

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

Regency Alliance posts strong 2024 earnings, eyes N15bn capital raise