Regency Alliance Insurance Plc has reported a 19.24 per cent growth in shareholders’ funds, which rose to N13.97 billion for the 2024 financial year, up from N11.72 billion in 2023.

The chairman of the company, Clem Baiye, disclosed this in a statement on Friday.

Mr Baiye said the growth reflected the company’s solid financial position, prudent investment approach, and continued confidence of investors in its operations.

He said that the company recorded a profit before tax of N2.50 billion, representing a 19.49 per cent increase over N2.10 billion in 2023, while profit after tax rose by 16.73 per cent to N2.25 billion from N1.93 billion.

He noted that equity attributable to the company rose to N14.04 billion from N11.78 billion.

According to him, insurance revenue increased by 20.03 per cent to N7.30 billion, up from N6.08 billion in 2023, indicating business expansion and improved underwriting activities.

“Insurance service expenses, including incurred claims and other technical costs, rose by 46.37 per cent to N4.12 billion from N2.81 billion in 2023,” he said.

Mr Baiye noted that, despite the rise in expenses, management costs grew moderately by 7.66 percent year-over-year, reflecting continued cost discipline.

He said investment income also improved to N1.17 billion from N923 million, while the company recognised a fair value gain of N170 million on investment property.

He explained that to reward shareholders, the board proposed a bonus issue of one new ordinary share for every three held.

Mr Baiye also announced that the board had approved plans for a rights issue and private placement to raise the required N15 billion minimum capital under the new Insurance Industry Reform Act (NIIRA) 2025.

The managing director of Regency Alliance Insurance, Bode Oseni, assured shareholders that upon completion of the capital raising exercise, the new shares would be allotted and listed on the Nigerian Exchange Ltd.

Mr Oseni said this would position Regency Alliance to become a top player in Nigeria’s non-life insurance market.

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

(NAN)