Regency Alliance gets approval to shore up capital
Shareholders of Regency Alliance Plc have urged the management of the company to hold on the dividend for the 2018 financial period, as part of its move to raise additional capital for the company.The agreement, reached at the company’s 25th yearly general meeting in Lagos, followed the announcement of a dividend payout of N200.1 million for the financial year under review, by the Chairman of the company, Baba Gana Kingibe.
“As a way of appreciating our esteemed shareholders, your board is recommending a total dividend payout of N200.1 million, representing three kobo per 50 kobo share for eligible shareholders,” he said.But the shareholders suggested that the dividends should be ploughed back into the business in lieu of pending recapitalisation.
The gross premium rose by 1.3 per cent from N3.37 billion in 2017 to N3.4 billion in 2018, although the gains of the increased premium generation was significantly eroded by the 24.3 per cent increase in net claims, 8.93 per cent increase in underwriting expenses and 3.94 per cent increase in management expenses, compared to the 2017 figures.
He said there was an increase of 24.37 per cent in the investment income of the company, which was reflective of the high deposit rates and government yield rates offered during the year.
The chairman disclosed that there was an increase of 6.68 per cent in profit after tax from N196.48 million in 2017 to N209.59 million in 2018.“It is expected that our company, building on the gains of past financial discipline and strategic positioning, will continue to produce better results in the future,” he said.
The chairman said the total asset base of the company grew by 6.48 per cent from N7.35 billion in 2017 to N7.82 billion in 2018.
“This was due primarily to the effect of the foreign exchange translation loss arising from consolidating RegencyNem Insurance Limited Ghana’s account. Total assets for our group and our company as at December 31st, 2018 stood at N9.853bn and N7.821bn respectively,” he said.
The chairman said that the company’s expansion into retail insurance was being pursued with renewed vigour, with the intention to increase market penetration through the deployment of an e-commerce platform on its website.
After presenting the 2018 performance of the company, the chairman, Amb Baba Gana Kingible announced his departure from the board. He expressed his gratitude to the company’s Board, Management, Staff and indeed the shareholders for their support in the last 9years.