Regency Alliance Insurance Plc has said that it is targeting to achieve N4.185 billion gross written (GWP) for the third quarter ending September 2022.
In its Forecast Profit and Loss Accounts Information for the Q3 earnings obtained from the Nigerian Exchange Limited (NGX), the insurance firm also projected N652.338 million as profit after tax and N7009.06 million as profit before tax for the period.
Regency‘s projection for net premium income stood at N2.68 billion while Net Claims incurred was N879 million for the preview period.
Regency Alliance Insurance Plc paid N1.031 billion claims to its customers in 2021.
The acting Chairman of the company, Mr Clem Baiye, disclosed this during the company’s 28th annual general meeting in Lagos, which was held virtually.
What the company is saying
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 N871.279million to N1.031billion.
“The increase notwithstanding, the claims ratio for 2021 (35.07%) is lower than the 35.20% recorded in 2020.”
While speaking on the financial report, the chairman said the gross premium generation rose by 31.97% to N5.118billion in 2021 from N3.878billion generated in 2020.
The company’s net premium rose by 18.82% from N2.475bn in 2020 to N2.941billion in 2021, he said.
Baiye said its profit before tax was N343.275million as against N681.137million recorded last year. He noted that the profit after tax also decreased from N628.587million in 2020 to N320.746million in 2021.
The chairman said shareholders’ funds grew by 5.07% from N6.329bn at the end of 2020 to N6.650billion in 2021.
According to him, the total asset base of the group as of December 31, 2021, stood at N11.869bn, a decrease of N876.498million or 6.88% when compared with the position on December 31, 2020.
Speaking on the recapitalisation that was introduced in the insurance industry, he said there has not been much development in the recapitalisation exercise. Due to ongoing litigations on the exercise, he added, the National Insurance Commission suspended all matters regarding recapitalisation.
Other key projections
- Net operating income N2.09 billion
- Investment/other income N290.49 million.
- Underwriting/ management expenses N895.75 million.