Regency Alliance Insurance

[lynste]

Regency Alliance Insurance plc presents result
Posted: 18 Jul 2008 11:58 AM CDT
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

[hispy99]

Regency to raise paid-up capital
By Nike Popoola
Published: Monday, 11 Aug 2008

Regency Alliance Insurance Plc has said that it will issue an additional 1.2 billion ordinary shares of 50k each, subject to the approval of the shareholders.

A statement by the Group Head, Corporate Affairs, Regency Alliance, Mr. Niyi Ojebisi, on Friday, said that if approved, the new issue would push the company’s paid-up capital from N2.4bn to N3bn.

He said the total sum of N606.3m was to be capitalised and set free for distribution to the shareholders proportionate to every ordinary shares held by them.

Ojebisi added that only members, who had their names on the company’s register as at August 4, 2008 would benefit from the bonus.

The company’s share price, he said, had already been marked down for that purpose.

The company, in the financial year ended, December 31, 2007, posted a gross premium of N1.2bn, against the N671m recorded in 2006, representing 81.5 per cent growth.

The statement added that the profit before tax grew by 9.9 per cent from N236m in 2006 to N262m in 2007, while its profit after tax rose to N237.5m from the N215.2m recorded in 2006.

The statement said that during the period under review, the underwriting profit was N670.7m, while investment and other incomes stood at N113.2m

Its total assets also grew by 53.5 per cent, from N2bn to N4.3bn in 2007.

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REGENCY ALLIANCE INSURANCE PLC
UNAUDITED RESULT FOR HALF YEAR ENDED 30-06-2008
2008 2007 %CHANGE
TURNOVER N821.255m N610.432m 34
PROFIT BEFORE TAXATION N185.716m N101.192m 83
TAXATION (N9.285m) (N10.459m) (12)
PROFIT AFTER TAXATION N176.430m N90.733m 94

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Regency Alliance targets top five positions in West-Africa in 2012
18 August, 2008 02:00:00 MODESTUS ANAESORONYE
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With the successful acquisition of a majority shareholding in Benefits Insurance Company Limited Ghana, now renamed, Regency Alliance Limited, Nigeria’s Regency Alliance Insurance plc says it has positioned itself for future challenges.

The company notes that it intends to move ahead and position itself among the top five leading insurance companies within the West African sub-region by 2012.

The Ghana office, according to the company has taken office in full swing, which it hopes would contribute to the overall performance of the company in from next financial year.

Augustus Aikhomu, chairman of the company, says effort has been made to prepare the company’s human resource with both local and international training to be able to confront emerging challenges.

He adds that another effort is about expansion both within and outside the shores, all geared toward improving its overall income, creating shareholder value, meeting the expectations of the insured’s as well as other stakeholders.

[hispy99]

Regency Alliance to boost shares with product development
By Nike Popoola
Published: Monday, 29 Sep 2008
Regency Alliance Insurance Plc has set a standing committee on products development in order to increase its share in the Nigerian insurance market.

In a statement from the company on Friday, the company’s Group Managing Director, Mr. Biyi Otegbeye, noted that the winning formula in today’s market place was creativity.

The company, he said, was not only interested in increasing its present market share, but would create avenues to increase the size of the market.

According to him, the company was seeking to convert non-users, increase usage rate and promote new users of insurance.

Quoting from available statistics, Otegbeye said that Nigerian insurance industry’s share of world market was only 0.01 per cent, while South Africa that was a third of Nigeria in terms of population, contributes premium income of about $40.70b, accounting for 0.86 percent of the global market.

The committee, he said, would therefore develop products that would appeal to different spectrums of the society in order to expand the market.

“We want to move insurance products to a stage that they would add value to people’s lives and businesses rather than depending on laws that force people to buy.”

The GMD pointed out that there were vast untapped opportunities in the Nigerian market adding that his company was ready to explore such opportunities.

“It is disheartening that with the size of our population and level of development, insurance penetration is still very low”, he lamented.

Otegbeye said many losses that have resulted to business collapse, bankruptcy, discomfort, distress and sudden death could have been mitigated through insurance.

He appealed to the public to avail themselves of the benefits of insurance in a world of uncertainty.

The MD advised policy formulators at both the public and private sectors to ensure that they build an insurance cover into their projects adding that it was the only way they could guarantee their success.

He further commended the National Insurance Commission for the on going enlightenment campaign adding that the efforts would augment those of the insurance companies.

[hispy99]

Regency Alliance to open Gambia, Sao Tome offices

DESPITE the global economic crisis, Regency Alliance Insurance Plc is going ahead with its expansion programme to West Africa.

Dropping this hint in Lagos during a media briefing, the company's Group Managing Director (GMD), Mr. Biyi Otegbeye, said that the second phase of the programme, which will take the company to the Gambia and Sao Tome, has begun.

According to him, "with the successful take-off of the company's subsidiary in Ghana, the company will early next year, open shop in the Gambia and Sao Tome. The operating environment, he said, is improving noting that the company's strategy in each country is to empower and train the citizens to run the organization".

He further stated that the company's subsidiary in Ghana is doing well adding that within a short period, it would become a Market Leader.

The GMD allayed the fear that the present global economic crisis might affect business activities in Nigeria and West Africa. He argued that Nigeria's economy could be insulated from the global crisis if the Managers of our economy do the right thing.

"If our antecedent is anything to go bye, we will survive any crisis. From the 1980 till now, we have passed through many economic crises. We cannot get worse than what we have experienced in the past".

On the problem facing the Nigeria Stock Market, Otegbeye said that it is normal for any sector to experience what he called the up and down syndrome, "I am sure that the stock market will get out of this stronger and better".

Otegbeye further said that investment in stocks is usually a long term one. He appealed to investors to be patient adding that they would reap the benefits on the long run.

The GMD also hinted that the company would soon increase it's paid up capital through injection of more fund in order to finance its expansion programme. "Despite the bearish condition of the market, companies that are doing very well like ours, will always attract investors."

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REGENCY ALLIANCE INSURANCE PLC
PERIOD 30/09/08 (3RD QTR)
2008 2007
TURNOVER N1.143b N784.291m
PROFIT BEFORE TAXATION N251.157m N239.537m
TAXATION (N28.883b) (N23.953b)
PROFIT AFTER TAXATION N222.274m N215.583m
BALANCE SHEET INFORMATION FIXED ASSETS
N822.129m N293.500m
TRADE DEBTORS N12.799b N13.368b
CASH AND BANK BALANCES N59.294b N18.734b
OTHER DEBIT BALANCES N3.798b N3.922b
TRADE CRDITS (N202.907m) (N451.302m)
WORKING CAPITAL N3.186b N3.371b
NET ASSETS N4.008b N3.664b