Regency Alliance Insurance plc presents result
July 18th, 2008 Ugonna Maduagufor || ugonna@stockmarketnigeria.com
The year ended 31st December 2007 Fully audited result of Regency Alliance Insurance plc, was made available to the Nigerian Stock Exchange today. The insurance sector company sector whose major business is general insurance, is proposing a 1 for 4 bonus share issue to her ordinary share holders, but has not mentioned any thing about cash dividend yet.
The company earnings result includes a Gross Premium of N783.875 million, as against a previous year 2006’s comparable periods figure of N332.350 million. The Profit Before Taxation was N262.540 million, as against the previous year’s N236.074 million. While the Profit After Tax figure was put at N237.540 million as against previous year comparable period’s N21.522m.
The proposed ‘one for four’ bonus reward will be based on August 5th 2008 as a closure date after which new stock holders lose such attached reward. The bonus issue is generally seen as an encouraging one, considering the fact that the company only got listed into the Nigerian Stock Exchange on the 27th May of 2008 into the Insurance sector of the market. The volume of the authorized issues made available for the bonus issue would only be fully paid for out of the company’s profit reserve or out of company’s premium reserves. Other analysts are of the opinion that the bonus issue reward is preferable to cash dividends considering the meager amount traditionally paid out by most Nigerian insurance sector companies as cash dividends. In spite of the encouraging announcement coming into the market officially today, Regency Alliance Insurance stocks traded in the negative direction today having lost 20 Kobo from yesterday’s closing price. newly issued shares bonus is payable out of the
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