From Ngozi Onyeakusi. Lagos
Regency Alliance Insurance Plc, as a way of appreciating its shareholders, has declared a total dividend payout of N200.06m, for the financial year ended 31st December, 2017, thus representing three kobo per 50 kobo share.
The said dividend according to the firm is payable to shareholders whose names appeared in the company’s register.
The firm has posted gross premium income growth to the tune by 8.61 per cent to N3.36bn in the 2017 from N3.1bn in recorded in 2016.
Addressing shareholders at firms 24th annual general meeting in Lagos, the Chairman of the company, Baba Gana Kingibe, announced plans by the company to review its expansion programme to make it compete effectively in the insurance industry.
As a way of appreciating its shareholders, he said the board recommended a total dividend payout of N200.06m, representing three kobo per 50 kobo share for eligible shareholders.
He also said that the company’s net claims rose by 117.46 per cent; 18 per cent in underwriting expenses and 14.6 per cent in management expenses when compared with the previous year’s figures.
Kingibe said, “Our salient result of the economic situation has been an increase in both the number of claims and value therein throughout the insurance industry. In 2017, there were huge claims payout in oil/gas, accident and motor classes.”
The chairman disclosed that there was an increase of 76.15 per cent in the investment income of the company, which was a reflection of the high rates and government yield rates offered during the year.
He noted that the resultant effect showed a decline of 58.25 per cent in profit after tax from N470.59m in 2016 to N196.48m in 2017.
“Though the drop is significant, your company’s fundamentals are still strong,” he said.
Even as he noted that the total asset base of the company grew by 5.7 per cent from N6.8bn in 2016 to N7.24bn in 2017, Kingibe said that total asset for the group stood at N9.3bn.
With the economy set for more growth this year, the chairman said that the company was reviewing its expansion programme to make it compete effectively in the insurance space.
He said that the company also intended to increase its market penetration through the deployment of an e-commerce platform.
“We will always be guided by our corporate ideals and values of professionalism, integrity, commitment and efficiency as we create wealth for all our stakeholders while mitigating all associated risks that may arise,” he said.