Regency Alliance Insurance, a leading underwriting firm in Nigeria, has announced plans to raise N15 billion through a combination of rights issue and private placement. This move aligns with the company’s strategy to meet the minimum capital requirement under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The announcement was made during the company’s 31st Annual General Meeting (AGM) held in Lagos, highlighting Regency Alliance’s commitment to strengthening its market position in Nigeria’s non-life insurance sector.
Board Approves Strategic Capital Raising
Presenting the company’s 2024 financial results, Clem Baiye, Chairman of the Board, confirmed that the rights issue and private placement were approved to raise the required N15 billion.
Managing Director, Bode Oseni, assured shareholders that upon completion of the capital-raising exercise, the new shares would be allotted and listed on the Nigerian Exchange (NGX), positioning Regency Alliance as a major player in Nigeria’s non-life insurance market.
“The Board is convinced that our company has the potential to become a leading force in the non-life insurance space,” Oseni stated.
Strong Financial Performance in 2024
Regency Alliance reported solid financial growth in 2024, reflecting resilience, prudent investment strategies, and operational discipline:
- Total Assets: N21.857 billion, up 15.96% from N18.848 billion in 2023
- Shareholders’ Fund: N13.972 billion, a 19.24% increase from N11.718 billion
- Equity Attributable to Company: N14.044 billion, up from N11.778 billion
- Insurance Revenue: N7.302 billion, a 20.03% rise from N6.083 billion in 2023
Despite a 46.37% rise in insurance service expenses, including claims and technical costs, the company maintained prudent management, with only a 7.66% increase in management expenses.
Investment income grew to N1.165 billion from N0.923 billion in 2023, while investment property revaluation gains added N170 million to profit.
As a result, profit before tax climbed to N2.503 billion, up 19.49%, and profit after tax rose 16.73% to N2.254 billion, demonstrating robust profitability and strategic resilience.
Rewarding Shareholders
In recognition of shareholder support, the board proposed a bonus issue of one new ordinary share for every three held, further enhancing shareholder value as the company expands its footprint in the insurance sector.
Looking Ahead
The planned N15 billion capital raise positions Regency Alliance Insurance to strengthen its balance sheet, expand underwriting capacity, and remain competitive amid evolving industry requirements under NIIRA 2025.
With strong financial performance and strategic growth initiatives, Regency Alliance continues to demonstrate its commitment to shareholders, clients, and the Nigerian insurance industry.