Regency Alliance Insurance Plc has paid N1.031 billion claims to its customers in 2021 financial year.
Clem Baiye, acting chairman of the company, disclosed this during the company’s 28th annual general meeting in Lagos, which also held virtually.
He said, “There was an increase of 18.36 per cent in the net claims position in 2021 when compared with that of 2020 as net claims grew from N871.279 million to N1.031billion.
“The increase notwithstanding, the claims ratio for 2021 (35.07 per cent) is lower than the 35.20 per cent recorded in 2020.”
While speaking on the financial report, the chairman said the gross premium generation rose by 31.97 per cent to N5.118bn in 2021 from N3.878bn generated in 2020.
The company’s net premium rose by 18.82 per cent from N2.475bn in 2020 to N2.941bn in 2021, he said.
Baiye said its profit before tax was N343.275m as against N681.137m recorded last year.
He noted that the profit after tax also decreased from N628.587m in 2020 to N320.746m in 2021.
The chairman said shareholders fund grew by 5.07 per cent from N6.329bn at the end of 2020 to N6.650bn in 2021.
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According to him, the total asset base of the group as of December 31, 2021 stood at N11.869bn, a decrease of N876.498m or 6.88 per cent when compared with position on December 31, 2020.
Speaking on the recapitalisation that was introduced in the insurance industry, he said there has not been much development on the recapitalisation exercise.
Due to on-going litigations on the exercise, he added, the National Insurance Commission suspended all matters regarding recapitalisation.
The chairman said, “At the company level, various options are being worked on to ensure that the company is on a good stead whenever the recapitalisation exercise resumes.
“I want to reassure all our shareholders and other stakeholders that your company’s fundamentals remain strong, and we are well positioned to meet the new minimum capital requirements.”
