Regency Alliance Insurance Plc, an Insurance company in Nigeria and the West African sub-region has reported a 227 percent increase in its after-tax profit for the year ended December 31, 2023.
According to the company’s financial statement filed with the Nigeria Exchange Limited, its after-tax profit rose to N1.94 billion from N594.6 million recorded in the previous year.
The company attributes this growth in profit after tax to its insurance revenue and investment income.
Further breakdown of the report revealed that the company’s revenue increased by 21 percent, reaching N6.08 billion, compared to N5.02 billion in 2022.
Investment income and other income also grew by 107 percent to N1.68 billion in 2023 from N810.5 million in the previous year.
Furthermore, profit before tax went up by 239 percent to hit N2.1 billion compared to N617.7 million in 2022. Regency Alliance’s total assets rose by 53 percent to N18.56 bilion, while shareholder funds also surged by 69 percent to N11.72 billion.
The company’s insurance service expenses saw a rise of 77 percent to N2.81 billion from N1.59 billion, while net expenses from reinsurance contracts dropped by 31 percent to N1.87 billion.
Regency Alliance attributed its financial stability to its robust asset and liability management framework, which helped manage financial risks associated with interest rates, foreign currency, equity prices, and credit risks.
“The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets, and insurance liabilities. Asset and Liability management attempts to address financial risks the group is exposed to, which include interest rate risks, foreign currency risks, equity price risks, and credit risks.
“The major financial risk is that in the long term, its investment proceeds are not sufficient to fund the obligations arising from its insurance and investment contracts. ALM ensures that specific assets of the group are allocated to cover reinsurance and liabilities of the Group,” the firm stated.
The company’s earnings per share also saw an increase to N29.15 in 2023 from 12.31 kobo in the prior year.
During the year under review, the company disclosed that it conducted its operations within the financial market by collaborating with various market actors who are the stakeholders. They included the owners, managers and employees of insurance undertakings, agents, insurance brokers, private and institutional clients, banks, and reinsurers.
“Our Company continued to make significant contributions to the socio-economic development of society by creating awareness through training and building the capacity of our employees on the subject of sustainability,” the firm said.
