Regency Alliance Posts ₦2.5bn Profit Before Tax in 2024, Up 19% from Previous Year

Kenneth Afor
3 Min Read

Regency Alliance Insurance Plc has released its audited financial results for the year ending December 31, 2024, reporting a profit before tax of ₦2.5 billion, representing a 19.34% growth from the ₦2.1 billion achieved in 2023.

The increase was supported by stronger revenue generation, as insurance income climbed to ₦7.3 billion, up from ₦6 billion the previous year.

A breakdown of segment contributions shows:

Oil and gas insurance generated ₦2.2 billion

Accident insurance produced ₦1.2 billion

Motor insurance delivered ₦1 billion

Other business lines accounted for the remainder

However, insurance-related expenses rose sharply by 46.37%, reaching ₦4.1 billion compared to ₦2.8 billion in 2023. Despite this, the company still reported a stronger insurance service result of ₦1.7 billion, higher than the ₦1.3 billion posted in 2023.

On the investment side, Regency earned ₦1.1 billion mainly from financial assets measured at amortised cost. Total net investment income came in at ₦1.7 billion, marginally below the ₦1.8 billion reported in the previous year.

Together, insurance and investment activities contributed ₦3.5 billion, reflecting a 15.08% increase from ₦3.1 billion in 2023.

The balance sheet showed steady expansion, with total assets rising from ₦18.8 billion to ₦21.8 billion, while retained earnings grew by 52.7% to ₦5.2 billion. Total liabilities advanced to ₦7.7 billion from ₦7 billion, mainly driven by insurance contract liabilities, which increased to ₦5 billion. Deferred tax liabilities stood at ₦1.5 billion.

Gross premiums collected during the year reached ₦7.2 billion, compared to ₦6 billion in 2023, while total claims paid grew by 33.18% to ₦1.9 billion.

Key Highlights (YoY):

Insurance revenue: ₦7.3bn (+20.03%)

Insurance expenses: ₦4.1bn (+46.37%)

investment income: ₦1.1bn (+26.34%)

Net insurance & financial result: ₦3.5bn (+15.08%)

Pretax profit: ₦2.5bn (+19.34%)

Retained earnings: ₦5.2bn (+52.70%)

Claims paid: ₦1.9bn (+33.18%)

On the stock market, Regency’s shares have rallied 73% year-to-date, currently priced at ₦1.30 per share. In August alone, the stock gained 63.75%, opening the month at ₦0.80 and peaking at ₦1.67 by mid-month, largely buoyed by renewed investor confidence following the enactment of the NIIRA Act.

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A graduate of Mass Communication from Yaba College of Technology with over four years in journalism (print and electronic) in several beats including business, politics, sports and entertainment.