Notwithstanding the unfriendly business environment in the country, Regency Alliance Insurance Plc has announced underwriting profit of N1.229 billion, this is an increase of N242.286 million from N0.987 billion recorded in the previous year.
The gross written premium income, however, declined by 5.8 per cent from N3.535 billion to N3.329 billion for the year. This was achieved mainly through increased retention of businesses by the company.
During the year also the company had a net claims expenses of N427.366 million showing a decrease of N178.454 million or 29.46 per cent compared with the figure for the previous year.
The Acting Chairman of the company, Baba Gana Kingibe, addressing shareholders at the 22nd yearly general meeting, said overall the profit after tax for the company increased from N294.908 million in 2014 to N333.329 million in 2015.
According to him, “for the group, the contribution of the subsidiaries to the overall profit after tax, after deducting that attributable to non-controlling interests, decreased from N135.889 million in 2014 to N33.715 million in 2015. The decline arose mainly from the drop in profit from Regency Alliance Insurance Limited, Ghana occasioned by huge claims payout owing to the floods of 2015.”
He said “In line with International Financial Reporting Standards, the financial statements of 2014 had to be restated by transferring to retained earnings balances on Asset revaluation reserves and fair value reserves, as it affects quoted entities. Together with the effect of change in depreciation policy on leasehold land, the group’s retained earnings balance as at 2015 year end stood at N259.036 million.”
Kingibe told shareholders “As a way of appreciating our esteemed shareholders, the board is recommending a total dividend payout of N200.063 million, representing three kobo each 50 kobo share for eligible shareholders. This is the highest dividend payout the company has so far recorded. The patience of our shareholders over the years where no dividends were declared, is sincerely appreciated. We believe that with your continued support and patronage, the company will succeed in paying dividend annually.”
For the future, he said, “The company has already started to implement its strategic plan for expansion, growth and increase in value,. Currently, the company has plans to expand into the North West and North East zones.
“Furthermore, in view of the Federal Government’s policy on local content in the oil and gas industry, the company is repositioning itself to increase its share of oil and gas insurance business in the country.
Our subsidiaries are being recapitalised and strengthened to make them not only compete effectively in their core areas but to add more value to the group as a whole.